We tell how the situation in the Chinese and global real estate markets has changed with the advent of the new coronavirus.
In February 2020, the average price for new buildings in 70 cities of China increased by 6.4% since January 2019, according to the Wall Street Journal with reference to the National Bureau of Statistics. This is the slowest rate of growth in housing prices in China since July 2018.
According to the publication, housing price growth will continue to slow down, as the scale of the impact of coronavirus on the country’s economy has not yet been fully estimated. It is believed that sales in the country fell by 90%.
Resale volume of condominiums and apartments in Singapore in the 1st quarter of 2020 could fall by 25-35% due to an outbreak of coronavirus, analysts told The Straits Times. Potential buyers of housing in Singapore began to refuse to view apartments, meet with realtors and owners out of fear of getting a coronavirus. Real estate sellers also avoid meetings with buyers.
Coronavirus may lead to investment by Chinese buyers in the US real estate market, according to a real estate company Nest Seeker International. Chinese investors still represent a large share among foreign buyers of residential real estate in the United States. The main demand of such buyers is concentrated in New York, Los Angeles and San Francisco.
Canada is also one of the main representatives of Chinese investors. The influx of money from Asia to Canadian real estate has previously stimulated a rise in housing prices in Canada. According to experts, the hotel sector and retail are more affected.
Italian banks have suspended mortgage payments for citizens from the northern regions of the country affected by the coronavirus.