Summary
1) The buyers could be state-owned companies
2) I don't think the land acquistion will have big impact in the real estate market
Analysis
Only those state-owned company such as China Overseas, China Resource, Franshion have the financial source to acquire land in overseas. So far most of these companies still focus on domestic market. To them, the first step to international market could be Hongkong rather than US and Australia. Although some companies such as CIC may mainly focus on foreign market, they prefer to be financial investor rather than to carry out direct investment.
Some private companies are interested in knowing more about foreign markets, but I don't expect they have any real residential land acquisition strategy as the return in domestic market is still much higher than that of overseas market and these company don't have necessary knowledge and resource to enter into foreign market.
Therefore, I don't think any significant land acquisition deal in overseas could be finished in the next 12 months.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
