China is revising its real estate business trend day by day and it is now gradually turning into a net seller than being a buyer. This inclination of the Chinese real estate industry is becoming a threat to the U.S. real estate business amidst the tensions China-U.S. trade conflict.
New Chinese Investment Trend in Real Estate Business:
Potential sources suggest that Chinese investors are becoming enthusiastic to set superlative bids for expensive places. According to FOXBusiness, this trend is causing a huge pause in the whole of US real estate and infrastructure markets. The choice for Chinese real estate investors includes mostly the lavish areas of the United State such as the Waldorf Astoria Hotel in New York City.
A comparative report published by the data analysis organization: Real Capital Analytics suggests that Chinese investors and industry tycoons went on to sell about $1.29 billion worth of property in the second quarter of 2018, whereas in the same time period, they bought stakes worth only $126.2 million of the commercial real estate segment.
The Current Situation of Real Estate Business:
While analyzing the current situation of real estate business, Dolly Lenz, the founder of Dolly Lenz Real Estate regarded this knack of Chinese investors as harmful for the industry in long run. She added "The commercial market is tough, it's been slowing down. Prices got way too high way too fast, partly because of Chinese purchasers.....All of the sellers are expecting this new high."
She further regarded this trend of Chinese investors as "short-term blips" and also predicted to see the end of this knack soon. She further added that Chinese individuals are also progressing in the same path. As they are also buying properties at cheaper rates and then expecting to sell those at a higher range.
She said that this trend is not going to last too long as the mid-range buyers have already started to lose their interest in buying high priced properties. "We can track lots of people who have suffered losses in the last year of something they bought a year ago," she concluded.
