How China’s Risk Crackdown Will Hit Manhattan’s Property Market
- Morgan Stanley sees 84% drop in China overseas property buying
- Office properties particularly vulnerable as controls deter
The Waldorf Astoria hotel in New York.
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China’s crusade against capital outflows and leverage has ensnared some of the nation’s largest property investors, including Anbang Insurance Group Co. -- the owner of New York’s iconic Waldorf Astoria hotel.
The crackdown is rippling across the world, and will likely spur an 84 percent slump in Chinese overseas property investment this year, and a further 18 percent drop in 2018, according to a report from Morgan Stanley. The most vulnerable real-estate markets are those in the U.S., U.K., Hong Kong and Australia, with office properties the most exposed, analysts including economist Robin Xing wrote.