This article highlights the additional demand Chinese investors are bringing to the US housing market, as many move their money out of the home country, where the economy is experiencing an economic slowdown. And then an acceleration of the real estate crash in China that has already begun. Indeed, in top tier markets, such as San Francisco, Orange County, and Manhattan, the Chinese often constitute over 50% of all buyers, with 69% of their purchases made in cash, not requiring a mortgage. It claims that until recently, the Chinese and the US Governments were actually facilitating this movement of wealth, which sped up dramatically in 2015. The report also notes that while there has been some improvement in the overall economy, it remains difficult for Americans to find jobs due to high unemployment rates. However, now the Chinese authorities are actively moving to slow down the outflows of domestic wealth, and this article suggests this is bound to hit US property values as investment from China declines. Additionally, many believe the Chinese property market is poised to crash, or at least experience a downturn, which, as we have previously noted, is having the additional effect of creating an increasingly negative sentiment towards investing in property among the Chinese.
This article highlights the additional demand Chinese investors are bringing to the US housing market, as many move their money out of the home country, where the economy is experiencing an economic slowdown. Indeed, in top tier markets, such as San Francisco, Orange County, and Manhattan, the Chinese often constitute over 50% of all buyers, with 69% of their purchases made in cash, not requiring a mortgage. It claims that until recently, the Chinese and the US Governments were actually facilitating this movement of wealth, which sped up dramatically in 2015. The report also notes that while there has been some improvement in the overall economy, it remains difficult for Americans to find jobs due to high unemployment rates. However, now the Chinese authorities are actively moving to slow down the outflows of domestic wealth, and this article suggests this is bound to hit US property values as investment from China declines. Additionally, many believe the Chinese property market is poised to crash, or at least experience a downturn, which, as we have previously noted, is having the additional effect of creating an increasingly negative sentiment towards investing in property among the Chinese.