Asians spinning the wheel
Investors take a gamble on recovery in Las Vegas, writes Susie Watkins Polakova
Astute Asian investors are taking a big gamble, putting their money and faith in one of the most dire real estate markets in America, one billed as the entertainment capital of the world which has not been at all enjoyable for investors since 2008.
The lights went out on the housing market of Las Vegas overnight with prices slashed, foreclosures blighting whole streets and estimates of up to nine out of 10 homeowners under water.
But now there are widespread reports of cash happy investors from the mainland and Hong Kong snapping up property in the city, having decided that their luck is about to turn.
The question is, are they placing a winning bet? At the University of Nevada, globally respected economists say the answer is maybe.
In their latest Economic Outlook, there are tentative signs of a recovery in the housing market, which has been dragging the rest of the local economy into deeper mire.
According to figures from the financial, property and consumer information group Core Logic, two years ago a staggering 70 per cent of Nevada home owners were in negative equity.
Today, that figure is just shy of 60 per cent, which is still a stark reminder that in any street in Las Vegas there are more losers than winners.