The Chinese yuan has fallen drastically last month, and China’s economy is also showing some signs of struggle. In a bid to boost the overall economy and stabilise the property market, recent regulation changes have made it easier for foreign property buyers to foray into the market.
Since last November, interest rates have been slashed 5 times, and prices and market sentiment have made a turn for the better in July. The market seems to have finally stabilised, though supply is still on the rise, leaving many townships and cities with massive blocks of empty units. Despite all that the government has done to help keep the market afloat, will investors be more wary about the country’s economical uncertainty or will they see this as a chance to enter the market?
In more popular cities such as Shanghai and Beijing, developers and property owners are still enjoying a relatively steady flow of sales and rental yields. Some Chinese buyers have also forayed into the Hong Kong market, where demand is high considering the population density and continued influx of temporary residents. Property launches in Hong Kong are well attended and over the past year the Chinese government has spent S$98.5 million purchasing properties in Hong Kong for staff housing.