At Houston’s largest international property gathering, developers, brokers and other real estate professionals all vie for the Chinese buyers’ attention.
The largest cross-border residential property binge
As they go on and promote those Houston townhouses, a Portugal participant aggressively sells its Golden Visa Program, and the Australian professionals attract the passerby using stuffed kangaroos. Welcome to the base of the world’s largest cross-border residential property gathering. Driven by an enfeebling yuan, increasing home property costs and the inclination to have offshore footholds, the Chinese citizens are acquiring overseas homes with an increasing momentum.
They are also advancing further at a distance more than before, considering the markets with lower prices like Houston, Johor Bahru in Malaysia and Pattaya Beach in Thailand over Vancouver and Sydney.
The Chinese demand for residential property overseas
For those cities included in the crosshairs, the test lies in balancing the economic advantages of the Chinese demand to the risks involving the increasing home costs encouraging a public backlash.
Richard Barkham, a London based chief global economist, from CBRE Group Inc, the biggest commercial property brokerage in the world, said that the Chinese already managed to collect very big amounts of wealth, and their opportunity to utilize that capital in the Chinese market has become restricted. He added that China has a huge population with over a billion people, and for him, this means a drip.
Ping An Haofang, owned by China’s top two insurer and an online real estate platform, indicated that its $15 billion estimate of the cross-border property investments in the year’s first half, coming from market data, almost equates to the figure of the entire 2015.
China’s most famous property website Fang Holdings Ltd has predicted that the overseas buying in its system is likely to increase by 130% this year. Transactions from China’s biggest new-home sales broker Shenzhen World Union Properties Consultancy Inc were already at 50% above from last year.
Whether it may be a house for sale Pattaya or an apartment in Houston, these Chinese buyers are definitely shaping up the real estate market with their overseas housing demands.