Real estate Market in China
The real estate market is also deeply associated with China's monetary framework through a few important channels. First, accommodation holdings are the largest segment of the benefit portfolios of Chinese family units, somewhat due to the absence of other speculative vectors for the two family units and businesses in the Chinese markets. still immature linked to money. Second, Chinese neighborhood governments are highly dependent on revenues from land transactions and use future revenues from land transactions as collateral to increase bond financing through the "nearby government funding phase" (LGFP). Third, businesses also depend on real estate resources as collateral to obtain, and since 2007, businesses, particularly well-capitalized businesses, have intensely connected to obtain land for speculative purposes. Finally, banks are vigorously exposed to real estate risks thanks to advances made to family units, real estate engineers, district governments and companies which are unequivocal or certainly supported by real estate resources.
Top investment Destinationa
- Thailand, US and Australia – some of the preferred destinations of Chinese property buyers – are witnessing a lull in activity
- China Real Estate Association’s decision to temporarily shut down sales offices in the mainland to prevent the spread of the virus has also made it “difficult” for investors to buy property overseas
Real estate markets abroad are feeling the pinch of the lethal coronavirus outbreak in China, as demand from mainland buyers slows significantly.
A real estate agency in Adelaide, Australia has temporarily closed its offices after two people who tested positive for the infection visited its premises. And markets like Thailand and the United States are shocked by the shutdown of activities and the interest of the Chinese, highlighting the impact of the epidemic on the sector.
"The prolongation of the virus epidemic crisis in February shook the Thai real estate market [because] Chinese buyers [are] the target group of real estate developers," said Chris Dietz, executive vice president of global operations main real estate companies. of the world, which has brokers in over 70 countries.
China Real Estate Association
In addition, the decision of members of the China Real Estate Association to suspend business at their sales offices on the mainland to prevent human-to-human transmission of the virus has also made it "difficult" for investors to buy goods abroad. .
Buyers also postponed visits, freezing purchase plans, with several cities on the continent blocked due to the epidemic, while many countries have banned travel. The number of confirmed coronavirus cases in China has exceeded 40,000 and the death toll has risen to over 1,000 on Monday.
Thailand, the United States and Australia are just a few of the markets that rely on Chinese buyers to boost their real estate segment. Mainland Chinese "Biggest Cross-Border Buyers of Luxury Properties in Most Asian and North American Markets"
"As the coronavirus epidemic has worsened, we have begun to see an impact in inquiries coming against what we generally expect for February, although this is the first days of the month so far,"
said said Liam Smith, sales manager for Hong Kong and China. at UK developer SevenCapital.
One of the effects of fear of the virus, Quintessially Estates, headquartered in London, is the decrease in property visits by potential buyers.
"The recent coronavirus epidemic has dominated the news agenda and its repercussions are now being felt in the real estate sector, particularly in the world's major wealth centers,"said Penny Mosgrove, CEO of Quintessential Estates.
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