Chinese purchases of US property slump amid Covid-19 pandemic, with rising political tension set to damp sentiment further
- Chinese purchases of US property priced at US$2.5 million and above sink by about two-thirds through June due to pandemic, political tension
- Mainlanders’ acquisition of residential real estate will decline by as much as 50 per cent for the whole year, Knight Frank analyst predicts
The sales volume of US property valued at not less than US$2.5 million bought with Chinese capital plunged by 68.1 per cent year on year in the first six months to US$314 million, data from the real estate consultancy showed. Investment in large cities, such as New York, Los Angeles and Chicago, fell the most.
“Covid-19 has been the key reason for the drop as the lockdowns significantly dampened physical economic activity and overall investment sentiment,” said Martin Wong, associate director, research and consultancy of Greater China at Knight Frank.
Investments in industrial property bore the brunt, shrinking by 92 per cent, followed by a 60 per cent plunge in residential assets and a 35 per cent decline in commercial real estate, he said.
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