The rebound of Chinese real estate
As is now known, the Covid emergency had its first outbreak in the now famous city of Wuhan. After the virus spread all over the world, it was possible to analyze how, in the various countries it has caused different effects in each economic sector. Obviously not excluding the national real estate market. Well, although the Chinese have always classified themselves as a power also in terms of investments, it seems that they are currently representing a big problem for potential buyers. This is for one simple reason. China is drastically raising its home prices. Today we will therefore discover how, starting from the beginning of 2020, Chinese real estate is evolving. In particular, as regards the extraordinary increase recorded.
Let's start with real estate investments. As reported by a previous column, national real estate investments reached + 4% on an annual basis in the first seven months of 2020. In doing so, they accelerated the 2% growth seen in the first half of the year.
But there is a however. Again analyzing the situation since the end of the European and non-Chinese New Year, there has been a slowdown. Respectively if compared to the same period last year (July 2019). The comparison shows a very slight increase in prices, not so shocking, but which makes us think. If the situation had been normal, there would have been no reason to write these lines. But, given the Covid emergency, this case deserves our attention.
The overall value of Chinese investments has increased at a time when the global real estate market is depreciating. This is said to be the ideal time to invest. Indeed it is. But apparently not in China anymore. In fact, if we analyze the '' inaugural '' situation of the pandemic, we recall that the prices of Chinese real estate had collapsed. Especially around the area affected by the first outbreak. While investors were hoping to spot a further drop in prices, well, it looks like their wish hasn't come true. Probably due to the need to raise the economy, Chinese real estate has paid no attention to secondary strategies. In fact, prices immediately rose, leading to a significant upheaval of the entire real estate sector.
What about sales? An overall drop of 5.8% was found in the last period. In short, the situation seems quite anomalous, as, on the one hand, the need emerges for a country to re-emerge from the crisis, but on the other hand, the impossibility of many of being able to access the real estate market due to these not very strategic entry barriers. .
How will the situation evolve? While waiting to resolve this dilemma, we have no doubts. In fact, we invite you to continue to follow our portal in order to receive, every day, all the information on the international real estate market. Always here, always with the Realigro team!
Let's start with real estate investments. As reported by a previous column, national real estate investments reached + 4% on an annual basis in the first seven months of 2020. In doing so, they accelerated the 2% growth seen in the first half of the year.
But there is a however. Again analyzing the situation since the end of the European and non-Chinese New Year, there has been a slowdown. Respectively if compared to the same period last year (July 2019). The comparison shows a very slight increase in prices, not so shocking, but which makes us think. If the situation had been normal, there would have been no reason to write these lines. But, given the Covid emergency, this case deserves our attention.
The overall value of Chinese investments has increased at a time when the global real estate market is depreciating. This is said to be the ideal time to invest. Indeed it is. But apparently not in China anymore. In fact, if we analyze the '' inaugural '' situation of the pandemic, we recall that the prices of Chinese real estate had collapsed. Especially around the area affected by the first outbreak. While investors were hoping to spot a further drop in prices, well, it looks like their wish hasn't come true. Probably due to the need to raise the economy, Chinese real estate has paid no attention to secondary strategies. In fact, prices immediately rose, leading to a significant upheaval of the entire real estate sector.
What about sales? An overall drop of 5.8% was found in the last period. In short, the situation seems quite anomalous, as, on the one hand, the need emerges for a country to re-emerge from the crisis, but on the other hand, the impossibility of many of being able to access the real estate market due to these not very strategic entry barriers. .
How will the situation evolve? While waiting to resolve this dilemma, we have no doubts. In fact, we invite you to continue to follow our portal in order to receive, every day, all the information on the international real estate market. Always here, always with the Realigro team!
