As real estate hits rock bottom in Detroit, Chinese investors are planning to purchase properties there, the People's Daily reported. There are more than a dozen properties priced lower than $100, with some extreme cases on offer for $1. Some Chinese investors are linking up to buy several properties there. Given that some wealthy Chinese are happy to spend $1,100 on a single pair of designer shoes, the opportunity of buying two Detroit properties with change to spare is not being ignored, the China Central Television reported.
The Chinese property market is experiencing a new round of tightening. The central government announced on March 1 a levy of a 20 percent tax on gains on pre-owned house sales.
Experts suggest home buyers should be cautious before undertaking an overseas shopping spree because there is "no such thing as a free lunch".
"More than 200 booths have been booked by overseas companies, hitting a new record," said Wei Kefei, director of the expo's international department. In addition to the traditional exhibitors from the US, Canada and Australia, there are new participants from East Europe this year, such as Lithuania, Latvia and Bulgaria. The tightening Chinese measures, according to Wei, may further strengthen some people's determination to buy property overseas.
"But the recent policy impact will not be huge because most Chinese buying overseas properties are not doing so purely for investment purposes," said Wei. "There is an increasing number of purchases because of the polluted environment at home."
Analysts also remind investors looking to emigrate that there is hardly any country that guarantees a green card simply for investing in a property within its borders.
The effects of a flurry of Chinese buying homes abroad is being felt outside the Chinese mainland, pushing up real estate prices in Southeast Asia, Australia and New Zealand, according to a report by Knight Frank.
Partly fueled by inflows of Chinese investment, prime real estate values in Jakarta rose 38 percent in 2012, compared with 20 percent in Bali and 12.7 percent in Auckland, New Zealand. Even Hong Kong, where legislation designed to limit foreign real estate investment came into effect this year, saw gains of 8.7 percent in the prime sector, the report showed. Top markets worldwide such as London and New York remain as havens for investors from around the world.
Analysts are seeing signs of a resurgence in prime markets elsewhere as well following inflows of capital from emerging economies in Asia and the Middle East, according to the report.
Chinese Looking abroad for a new home in Bali "Sources" : http://www.chinadaily.com.cn/cndy/2013-04/08/content_16381637.htm
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