This article is considered to be a brief outlook of the most significant events that have happened in the world of real estate over the recent days.
And we shall start with a real estate prices hike, which heralds in future only economic recession. A Federal Reserve official broached a question on Tuesday about assuming measures aimed at regulation of interest rates. President of the Boston Fed, Eric Rosengren stated that such price hikes in the field of estate property leads to financial fragility. We have already experienced something like that in 2007-2008, and here only one word can be mentioned, and the word is instability. E.Rosengren also touched upon the following idea that estate property at variorum times has always been instrumental in episodes of financial uncertainty and that prices are now running ahead growth in building owners’ operating revenue. There must be assumed measures by applying a stricter rule book and regulations on bank holdings.
Meantime in China real estate bubble poses threat for society by property price hikes. The unfavorable prognosis for young generation can be explained by the fact that the social risks resulting from the real estate bubble in terms of youth bring down which means that youth generation won’t be able to possess a housing they could count on. Vice President Wu Xiaoqiu also stated that if rising generation is in despair, the economy will be hurting, as housing is a must. He also expressed a belief that regulatory body would arrive at a decision to compel the froth in Chinese realty but conceded that measures taken to curb speculation have been crowned with fleeting success. According to the recent data prices in such big cities as Shenzhen, Shanghai and Beijing moved upward by 13, 5%, 22, 1% and 21, 1% respectively in comparison with a previous year.
In April Xi Jinping, China’s president, is going to pay visit to Donald Trump. The place of meeting is supposed to be Mar-a-Lago estate, Florida. For Chinese capital providers Florida is posed as a good investment into housing development sector. Prices in Florida are attractive enough comparing its places of investment with other Chinese flashpoints. Medium price in Shanghai nowadays is something around $750,000.
A great number of students that came from China are studying at the University of Florida, and their parents in their turn are ready to buy them apartments instead of living in dormitory accommodation; or to buy a house near the place of study of their beloved child for family visit travel. Approximately 1/3 part of all foreign students that study in Florida, are from China.
After a short off-top let’s return to the visit of Xi Jinping. Of course the main topics for discussion of those two presidents will be trade, secure in North Korea and probably some attention will be paid to Palm Beach and Florida as a whole.
In 2016 Capital providers from China made more than a half out of 100% estate property buying inquiries. It is much more in comparison with buying inquiries made by them 2 years ago.
Pittar thinks the trip may also help out Trump real estate. Xi’s visit could set off a round of new Mar-A-Lago membership inquiries among wealthy Chinese already living in the state.
We venture to suggest that this visit can also offer a helping hand to Trump estate property. Xi’s call might set off a round of new Mar-A-Lago membership inquiries among prosperous Chinese already living in the state.
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