Despite increasingly frayed relations between the two trans-Pacific superpowers, Chinese interest in U.S. property continued to remain strong during the first quarter of this year.
However, more Chinese buyers in search of global real estate spent the first quarter looking to Greece and Germany rather than the U.S.
According to a new survey released by Juwai IQI, a Hong Kong-based real estate sales and media company, Chinese inquiries into U.S. property during the first quarter grew 48% from one year earlier.
Tensions between Beijing and Washington had relatively little impact on Chinese buyers, with Juwai IQI pointing to the possible devaluation of the Chinese currency and that nation’s pandemic-weakened economy as the impetus for those seek out a secure investment environment outside of China.
“The U.S. is the classic safe market, where buyers can protect their money from international turbulence or adverse events at home,” said Juwai IQI Executive Chairman Georg Chmiel. “With financing extremely cheap, Chinese buyers who are in a position to tap U.S. mortgage markets can leverage their purchase at a very small cost.
Cheap mortgages also give Chinese buyers confidence that they can reap gains as prices increase in the long term.”
Chmiel added that “extremely low financing costs in the U.S. reduce capital requirements for Chinese buyers. This makes it easier to accumulate necessary funds for the purchase and management of real estate, despite Beijing’s strict capital export controls.”
