February 28, 2017
New policies in China are having a significant impact on real estate investment across SoCal. Beijing’s crackdown on capital flight is creating a sales slowdown, especially in the high-end residential sector.
Luxury properties that once sold to Chinese investors in a matter of days, now are on the market for months. The breather is giving buyers who require a loan a chance, as they are competing with a smaller pool of all-cash buyers.
China’s foreign exchange reserves have dwindled by a staggering $1 trillion, its lowest level in nearly six years. Chinese policymakers are working to solidify currency and maintain good standing with the International Monetary Fund.
Since 2015, foreign currency requests are under more scrutiny by Chinese banks’ and regulators’ increased enforcement efforts. This year, even stricter guidelines included restricting foreign property investment, detailed accounting of funds used and a prohibition against taking currency out for others.
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