A real estate broker at Compass in New York claimed that the global real estate market has been suffering delays and declining purchases on properties caused by slowing business activity in China. He cited that Chinese investors and customers formed part of a significant number in the US real estate market and that the industry declines are caused by diminishing demand for US real estate products from that market segment.
According to Eric Marrus of Compass, New York, the public health problems in China have enabled real estate brokers to resort to virtual selling of the real estate properties to Chinese buyers. He said that the logistics sector of the industry has been suffering due to the epidemic.
Marrus claimed that a quarter of his earnings have been sourced from Chinese buyers and that real estate markets in the US and other countries have been relying on Chinese buyers for real estate deals and potential purchases.
The report claimed that Chinese real estate buyers have incurred total annual real estate purchases of 13.4 billion USD on US properties last year. The said yields were perceived to be favorable to the US market despite the trade tensions between he country and China.
It was further revealed that in California, 34 percent of foreign purchases on real estate properties also emanated from China. According to broker associate at Keller Williams Coco Tan, she had to observe precautions when welcoming Chinese guests for walk-ins and tours to real estate properties. She said that about 25 percent of her clients were also Chinese.
Tan further added that the public health crisis has caused customers to delay their property visits to the US due to governmental travel restrictions. Tan also said that the delays might cause a decline in sales for her in the coming months since she only had to reserve the allotted properties for Chinese clients without the assurance of purchases.
Associate Broker with Compass in Newport Beach also shared that the Los Angeles real estate market has also returning Chinese customers every year. He claimed that their properties were usually used for estate planning and were rarely occupied by clients.
Hr further added that the travel restrictions could also hurt the California real estate market since the Chinese clients would have a hard time surveying and reviewing properties to be sold to them.
In other locations, the Vancouver and Singapore real estate markets have echoed the declines in real estate purchases caused by the public health crisis in China. These markets were also revealed to rely heavily on Chinese real estate buyers for growing profits and constant product sales.
