Author Topic: Why China Fell Out of Love with New York Property  (Read 289 times)

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Offline icey

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Why China Fell Out of Love with New York Property
« on: July 11, 2019, 03:11:23 PM »
Would be curious to see a West Coast version of this article.

Key points

1. China is now a net seller of overseas real estate
2. Chinese government is clamping down on cash outflows from the country
3. New York is big enough to absorb the exit of Chinese buyers, but growth will be slowed
4. Same thing happened in late 1980s with Japanese investors

https://www.ozy.com/fast-forward/why-china-fell-out-of-love-with-new-york-property/95218

Offline icey

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  • The dollar volume of homes purchased by foreigners from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors.
  • Foreigners bought 183,100 properties with a total value of about $77.9 billion, down from 266,800 properties valued at $121 billion a year earlier.
  • The magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.,” the Realtors’ chief economist says.

Quote
A confluence of many factors — slower economic growth abroad, tighter capital controls in China, a stronger U.S. dollar and a low inventory of homes for sale — contributed to the pullback of foreign buyers,” said Lawrence Yun, NAR’s chief economist. “However, the magnitude of the decline is quite striking, implying less confidence in owning a property in the U.S.

Quote
The Chinese may also be souring on U.S. real estate due to the current political climate. Anecdotally, real estate agents in California have seen a pullback in Chinese buyer demand. Southern California had been particularly popular with Chinese parents hoping to send their children to American colleges.

https://www.cnbc.com/2019/07/17/foreign-purchases-of-american-homes-plunge-36percent-as-chinese-buyers-flee.html

Curious if any agents here are noticing the same thing?

 

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