Local investors from China flocked to Japan looking for a various property, especially hotels and other lodgings. These are flats in Japan, which cost about the same as one urban center in Hong Kong. According to SCMP, these deals come on the heels of the current economic situation between China and the United States, which puts each country's economy at risk.
Hong Kong, a province of China, has a lot to be worried about these days. However, when it comes to real estate, they have the US-China trade spat as the worst thing currently happening. It is also one of the reasons why its citizens have decided to put their money investing in foreign real estate sectors, the most common of which are into their closest neighbor, Japan.
The Japanese property market is rife with possibilities. The most popular properties tend to be in the commercial real estate sector, where hotels and private lodgings have been made up for grabs.
These Chinese investors are investing in these foreign markets despite the plea of their government to first consider putting their money into local properties.
It is, however, as hard to spend money abroad as it is locally because of these uncertainties hounding on trade and the Chinese economy. Straits Times reported that tensions between the US and China are the least of the Chinese economy's worries; there are also issues needing attention, regarding runaway prices because of the toll that the tariffs had taken.
Shanghai-based Kaiyuan Capital is painting a bright picture, however; managing director Brock Silvers had said that it was 'too soon' to call the troubles hounding the Chinese territory.
The depth of financial outflows from Hong Kong to other regions in the world was 'too shallow' to say that money is forming a steady outflow out of China and into foreign markets, contrary to the government's requests.
Singapore is one such place that stands to benefit from this outflow of money. It is only one of many territories that may benefit from Chinese money, with China's super-rich preferring to transfer money to safe-havens. Singapore is especially interesting to foreign businesses and Chinese investors alike.
With the uncertainties still hanging over China's economy, the money may take a long time going home. Time will tell whether the conclusion of China's trade war with the US will prove a deal-maker in getting the Chinese to spend locally more frequently.
