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Real estate investors are increasingly turning to China to fill their homes.
While China’s housing market is in a severe downturn, some investors are still bullish on the country’s real estate market.
Here are some of the highlights:Investors are turning to Asia for homes – according to research firm iRobot, Chinese buyers are now spending more money in the country than in the United States.
The firm says that over the last 12 months, Chinese sales increased from $1.6 billion to $1,731 billion, and that this surge in Chinese purchases was driven by a massive increase in the number of units being constructed in China.
The Chinese government is also pushing the country to speed up construction of new housing units.
China’s real-estate boom is not a one-time phenomenon – China is now a major player in the global real estate markets.
iRobots data says that China is the world’s third largest market for residential real estate and home equity investments.
The number of properties being constructed has been growing steadily in China since 2013, but the country has seen a dramatic increase in home sales over the past 12 months.
The number of new homes being constructed increased by 70 per cent in 2018, iRobotics research says.
In 2019, China’s total residential construction increased by a staggering 2,946 per cent compared to the previous year, while new home sales increased by 3,067 per cent.
The rapid increase in Chinese home sales is causing the country a housing shortage.
According to research by the United Kingdom-based real estate website Trulia, China has the world most unaffordable housing market, and the country is expected to become unaffordable for the next 20 years.
Chinese buyers can buy an average of 1,700 homes in 2020, with the average asking price for a home in Beijing, which is home to the World Economic Forum’s World Economic Outlook, set at $2.5 million, being about $1 million higher than the national average.
A recent report by the International Monetary Fund showed that China’s property market is now expected to have a price correction from 2020 to 2030.
According to a report from Real Estate Board of Greater Los Angeles (REBGA), China’s growth rate in housing sales is forecast to reach 5 per cent by 2020.
This will lead to a surge in demand for housing in the capital, which will lead investors to invest in the city.
China has been the world leader in the construction of houses for more than 20 years, and REBGA estimates that China now has over 9.8 million residential properties and more than 9 million single family houses in use.
In addition to the Chinese demand for new housing, China is also seeing an influx of foreign buyers.
The Economist Intelligence Unit (EIU) says that foreign direct investment in China has reached an all-time high of $8.8 billion in the first quarter of 2020.
The total number of foreign direct investments in China was $11.3 billion in 2018.