For some time now Chinese demand for American real estate has accounted for a big part of the buying in some markets. Now, with a trade war escalating between China and the United States, it appears that some Chinese buyers may be pulling back. CNBC’s Grace Shao reports:
Chinese home buyers last year ponied up much less cash in the U.S. as the trade war continues to escalate between the world’s two largest economies.
As President Donald Trump and President Xi Jinping prepare to meet this week, there are worries that decline in spending could extend further.
U.S. property sales to Chinese buyers saw a 4% drop from 2017 to 2018, according to numbers provided by Juwai.com, China’s largest foreign property sales site.
“The worsening trade relationship between China and the US may cause Chinese investors to shift their presence into other key markets,” property consultancy Knight Frank said in a report. It suggested that investment can instead go to major cities in Australia, Japan, and the United Kingdom, according to the firm’s 2019 Wealth Report.
American properties have been struggling with international investors overall: All foreign spending on U.S. homes fell by 25% in 2018, according Juwai.com.
U.S. homes have long been a favorite among Chinese foreign property buyers. But that’s increasingly less of a sure thing amid the escalating trade tensions and China’s tighter controls on money leaving the country.
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