The Chinese are thinking hard about what is happening at home and they are now holding back on their property investments in the United States.
In the last five years, Chinese investors have overtaken the Canadians as the biggest buyers of U.S. properties but China's current economic conditions have given them a reason to pause and think hard about putting more money on American real estate. According to The Wall Street Journal, the five-year spending frenzy by Chinese investors ended around March and data shows that they have gobbled up everything. They bought $500,000 condo units in New Jersey, vacation homes in California valued at $3 million and even Manhattan properties priced at $10 million and up.
As an example, the report cited Karen Xu who is from Shanghai. She was planning to buy a property in Miami that would have set her back somewhere from $500,000 to $750,000. She changed her mind and said "I don't think I'll be investing in the U.S. right now. Maybe I'll wait another five years, or invest in China."
Many Chinese buyers have begun to hold back and adapt a "look-see" stance as they begin to worry about China's stock market and overall slowdown of economic growth. China's stock index had its biggest drop since August recording a 5.5 percent slide on Friday which is said to be a reaction to the crackdown of Beijing officials on the securities sector.
In a report by Bloomberg, a weekly gain by Chinese stocks was instantly wiped out as the Chinese government decided to take a look into the country's top broker firms. Many investors also expressed concern over the move of the government to ease on its support of financial markets which they believe could further delay the economic rebound everyone is hoping to happen before the year ends.
