The government of China has been trying to tame a frenzy of housing purchases – through a series of policies – such as:
- Raising mortgage rates
- Limiting apartment ownership
- Upping the down payments needed on second homes
Still droves of speculative buyers are continuing to scoop up apartments and homes. In terms of real estate investment international, the capital that is being invested into commercial and residential projects from China’s mainland is at the highest yet with total Chinese offshore assess tripling from $6.4 trillion in 2015 to an expected $20 trillion by 2020.
These results in prices rapidly climbing and massive borrowing, the WSJ reported. Prices in over 70 Chinese cities rose over 9.6% in May from the same time last year. Chinese officials are worried that the real estate bubble could set off a series of foreclosures once it bursts. But at the same time, they do not want to go too far in slowing investments.
Lessons from US and Japan markets should have signaled that there is no such thing as an ever-rising market. But, China is not in the same place as the United States was in the lead up to the financial crisis well over a decade ago. Chinese banks do not offer mortgages that are risky and are restricted in their capacities to selling off loans as securities. Also, most buyers are also certain that the government will not let the market collapse.
Currently according to Moody’s, real estate accounted for over 68.8% of China’s assets at the end of 2016. And company such as Digital Marketing Agency based in Shanghai are dedicated to helping their clients grow in this current market by applying the most effective digital strategy to offer return on investment.
Clients in the US
There are companies such as https://www.marketingtochina.com/guide-sell-real-estate-china/ in the United States that are reaching out to clients who are wanting to invest in this boom market.
Go and see
If you live in the United States but would like to go to China to see exactly whether this is a safe market to invest in, you can go to https://tripsinchina.wordpress.com/
To see how the tourism market is doing. Most wealthy clients from the United States are investing in 2nd (and some in 3rd or 4th) homes in China.