With the ever-increasing repercussions of the coronavirus outbreak, real estate markets in the US and other such countries that depend on Chinese buyers to swell their financial reserves are witnessing a backlog as current deals are being halted and the potential transactions are delayed for an indefinite period.
According to reports, Chinese buyers invested near about US$13.4 billion to procure US homes last year. This was reported as the highest expenditure from any country amidst the financial turmoil that circumscribed the increasing trade war and suppression on accepting cash from China. However, the situation same everywhere; from Vancouver to Singapore, realtors are being challenged with the same issue as all of them depend on Chinese buyers to plump their trade. Evidently, with hundreds and thousands of Chinese efficaciously secluded from the mainstream exchange, it has become difficult to sell real estate.
For instance, in California, where China alone purchased 34% of the foreign properties last year, the brokers have taken to wearing surgical masks while opening the properties and greeting the clients with a wave instead of a handshake. Incessant cancellation of flights is making the situation even worse; clients from China have postponed their visit until the next summer and consequently, the deals will have to be halted till then.
Nevertheless, the picture in Sydney is entirely reverse; as per the statements of the founder of Black Diamondz, Monika Tu, the virus has somehow escalated the demand for luxury assets. A major fraction of her clients from China have their families in Australia and those who were in town to celebrate Chinese New Year extended their sojourns owing to the epidemic. Presently, this very group of people is buying homes in Australia and the weakness of the country’s currency is just being treated as a cherry on the top. But, experts are of the opinion that this surge of demand in Australia wouldn’t be long-lived and might last only through the course of the outbreak.
Closed embassies of Australia have started affixing the process of generating “significant investor” visas, which is regarded as the fundamental channel for the rich Chinese to get their hands on permanent residency in the nation and thus, gain rights to buying its real estate properties. As a corollary of the ongoing humdrum, Singapore is facing a lot of disturbance as the Chinese nationals who happen to be the most esteemed buyers in their market, are backing out. Even though the clients were scheduled to visit the country sometime in late January to inspect the real estate assets but, immediately after booking their flights, Singapore prohibited the entry of Chinese Nationals to safeguard itself from the deadly virus. This implies that the buyers had to keep their plans of purchase on hold until a later date hence, leading to a 20% plunge in the overall sales.
Coming back to California, a luxury home builder known as Toll Brothers stated that about 11 closings were shelved in the preceding month because of the coronavirus.
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