Properties abroad a two-edged sword

With risks rising in the domestic real estate market, investors are switching attention to overseas markets. Among the difficulties investors face in the domestic market are tighter credit policies, stricter scrutiny and over supply of housing units. In contrast, they find the global realty market brighter because loans are more forthcoming and the yuan has been appreciating at a consistent pace.

Some well-off Chinese, particularly high net worth individuals, in their quest to migrate to foreign countries and maintain (rather increase) the value of their assets, have begun investing heavily in overseas real estate markets, and their preferred destinations are Europe, the United States, Australia and Singapore.

The US has replaced Canada to become the most desired destination for Chinese real estate investors after the Canadian government tightened its immigration policy recently. Some Chinese developers have even visited the US in person to buy properties there, which they intend to develop and sell to Chinese or Chinese-American buyers.