Property markets reel from coronavirus outbreak as Chinese investors pause transactions
- Thailand, US and Australia – some of the preferred destinations of Chinese property buyers – are witnessing a lull in activity
- China Real Estate Association’s decision to temporarily shut down sales offices in the mainland to prevent the spread of the virus has also made it “difficult” for investors to buy property overseas
Overseas property markets are feeling the pinch of the outbreak of the deadly coronavirus in China with inquiries from mainland buyers slowing markedly.
One real estate agency in Adelaide, Australia has temporarily shut its office after two individuals who tested positive for the infection had visited its premises. And markets such as Thailand and the US are reeling from the halt in activities and interest coming from the Chinese, underscoring the impact of the outbreak on the sector.
“The prolonging of the virus outbreak crisis into February has shaken up the Thai real estate market [as] Chinese buyers [are] the target group for property developers,” said Chris Dietz, executive vice-president of global operations for Leading Real Estate Companies of the World, which has brokers in more than 70 countries.
Additionally, the move by China Real Estate Association’s members to suspend business at their sales offices in the mainland to prevent human-to-human transmission of the virus has also made it “difficult” for investors to buy property overseas.
Buyers have also deferred viewings, freezing buying plans as several mainland cities are on a lockdown because of the epidemic, while many countries have issued travel bans. The number of confirmed coronavirus cases in China has crossed 40,000 and the death toll has risen to more than 1,000 as of Monday.