China's economic slow definitely has a role in the major changes of the global investment world. In the aspect of real estate, China's slowdown will surely affect prices of luxury real estate in major cities world-wide. According the latest Knight Frank Prime Cities Forecast, the world would likely expect a slow down nearly half this 2016, from the 3 percent last year down to 1.7 percent this year.
By definition of Knight Frank via cnbc, luxury or prime real estate suggests "real estate market as the most expensive 5 percent of homes in each city." The said global phenomenon would also likely affect nearby Asian markets, according to the forecast, Hong Kong's price would likely fall by 5 percent, while real estate prices in Singapore will be falling around 3.3 percent due to the said economic slowdown. Global head of research for Knight Frank in London even stated that "We're moving into a different environment where you won't see the level of wealth creation in China that you've seen in recent years."
However, despite other countries market price plummeting to the ground, Australia would relatively be strong, for according to reports, the Australian market price will see an increase of at least 10 percent this year. On the other hand, other countries will likely be influenced by China's economic slowdown in a positive way. Since wealth creation is being tempered in China, rich Chinese investors will likely look for better market abroad, thus driving more wealth into a chosen overseas real estate market as what Bailey suggested. According to him;
"What we've actually seen is that as you get more economic uncertainty within China, the desire of the wealthy Chinese and even the middle class to diversify their investments outside of China has increased," Bailey said. "It's a bit counter-intuitive but we're seeing more demand for money moving outside of China."
