Chinese investors sold off billions more in U.S. commercial property last year than they bought, as other foreigners start to sour on the U.S. market as well.
Foreign investors were net sellers of U.S. commercial real estate last year for the first time since 2012, posing a fresh setback for a market that is already showing signs of strain.
— The Wall Street Journal
The Wall Street Journal reports that foreign investors sold $20 billion more in real estate than they bought last year as a number of international economic trends, including Brexit and an ongoing effort by the Chinese government to bring investment back home, converge to make the American real estate market less appealing to these buyers.
In total, foreign buyers sold $63 billion in property in 2019 and purchased just $48.7 billion, according to Real Capital Analytics. In part, The Wall Street Journal cites flat vacancy rates in the US apartment market and falling rents due to new construction and rent control initiatives as being partially responsible for the real estate cool off, as well, adding that "in New York City, values of rent-regulated apartment buildings have fallen by about 25% in a matter of months."
1 Comment
I think this is fair, given the current situation in the US and the world
Block this user
Are you sure you want to block this user and hide all related comments throughout the site?
Archinect
This is your first comment on Archinect. Your comment will be visible once approved.