(Yicai Global) Feb. 27 -- Chinese property investment abroad tumbled by close to two-thirds last year to a four-year low of USD15.7 billion as divestments surged to USD12 billion, according to a new report from real estate consultancy Cushman & Wakefield.

The government's tough investment regulation and a tightening financial environment have had a significant impact on the sector, the 2019 China Outbound Real Estate Investor Intention Survey stated, citing data from Real Capital Analytics.

Chinese property investors switched to selling last year with industry heavyweights such as Wanda Group and HNA Group frequently putting assets on the block. The country's capitals sold US properties worth USD3.1 billion last year against purchases totaling USD2.3 billion, RCA data shows.

"I initially planned to buy an apartment in the US but later gave up because it is difficult to get large amounts of money out of China," state-backed newspaper Securities Daily reported one investor as saying. "Investment and rent are the major reasons for my plan to buy property overseas, I didn't intend to live there."

"I have friends who bought houses built by Chinese real estate developers in Malaysia, but this is a rare occurrence now," he added.

Multiple Chinese property investors have turned to Hong Kong to buy land since the second half of 2016, while individual companies are now selling assets in the special administrative region at a quicker pace. The special administration region still remained a key area for Chinese capitals' overseas properties investment last year.

Hong Kong ranked first in terms of Chinese capitals' overseas real estate investment for the second consecutive year in 2018 though annual turnover fell one-fifth to USD9.5 billion. The US and Australia followed with USD2.3 billion and USD1.3 billion, respectively, according to RCA.

"We expect domestic banks to maintain tight credit policies for the real estate sector this year," said James Shepherd, managing director at Cushman & Wakefield Greater China Research. "We will also see more investors disposing of their existing property assets, including those inside China," he added.

Editor: William Clegg