US housing market still ‘very appealing’ for Chinese buyers, with purchases tipped to surge in 2022 (mortgages, houses)

[DFW_FTW]

Chinese demand for US property grew late last year and is predicted to climb further in 2022 as coronavirus travel restrictions are eased, industry insiders have said.

About US$700 million worth of Chinese money entered the US commercial property market over the year ending in September, up from US$600 million the previous year, the Washington-based National Association of Realtors said in a February outlook.

“The US home market is very appealing to Chinese buyers,” he said. “In particular, the prospect for continued rapid price growth attracts buyers who are eager for capital gains.”

Chinese investors are also focusing on less expensive markets such as Florida and Texas, places with “higher yields and lower taxes”, Ansari said.

https://www.scmp.com/economy/china-e...chinese-buyers

[Bluefox]

Depends whether their own property bubble bursts which is looking far more likely to happen sooner rather than later.

[mhays25]

Prices might be too high, particularly as interest rates rise, but "burst"? Jobs are plentiful, we're not over-borrowing, we're not overbuilding...


The Chinese dynamic will be interesting as borders reopen. I'm in Seattle, which was getting a large chunk of this investment pre-Covid...

[Bluefox]

Originally Posted by mhays25

Prices might be too high, particularly as interest rates rise, but "burst"? Jobs are plentiful, we're not over-borrowing, we're not overbuilding...


The Chinese dynamic will be interesting as borders reopen. I'm in Seattle, which was getting a large chunk of this investment pre-Covid...

Oh I was talking about the Chinese property market. Totally different. That market is in big trouble.

[annie_himself]

Originally Posted by mhays25

Prices might be too high, particularly as interest rates rise, but "burst"? Jobs are plentiful, we're not over-borrowing, we're not overbuilding...


The Chinese dynamic will be interesting as borders reopen. I'm in Seattle, which was getting a large chunk of this investment pre-Covid...

Oh I don't think that means a collapse can't happen.
Most young people can't afford to buy and wages are historically stagnant.

[Veritas Vincit]

Should be illegal for people or institutions to buy property in this country if they aren't based here. In the case of institutional investors it should be required that they meet certain employment and revenue requirements in the U.S.

[mhays25]

Originally Posted by annie_himself

Oh I don't think that means a collapse can't happen.
Most young people can't afford to buy and wages are historically stagnant.

That's already factored in. A collapse would require something else changing, and probably something big.

[mhays25]

Originally Posted by Veritas Vincit

Should be illegal for people or institutions to buy property in this country if they aren't based here. In the case of institutional investors it should be required that they meet certain employment and revenue requirements in the U.S.

By extension, Americans shouldn't be able to buy second homes in other countries.

I'm not saying I agree, but it would be consistent.

Actually this might mean more second homes bought by Americans in the US...this might cause a big surge in vacation areas and towns in cities' orbits, though it might equal out vs. foreign buyers on average.

PS, if you want to bring countries closer together, with no chance of ever going to war, let their citizens buy properties in each others' borders. Same if you want to even out the flow of cash we're sending over for manufactured goods.

Simple isn't simple.

[Gaylord_Focker]

I think the Chinese will still favor California. The negatives of California , the income tax, is meaningless to them. And the fiscal positive, property tax don’t escalate as your home increases in value, are great for investors.

[luv4horses]

Where does that 600 million figure come from? In California that might only represent 600 to 800 houses. So 600M seems low unless foreigners are getting low down payment mortgages, which is unlikely.