Do I want to invest in the 2nd fastest growing economy in the world? One which has artificial controls to make sure my investment is stable, yes I do. Investment in non residential areas are heavily blocked with rules such as technology transfer, tarrifs, and management needing to be Chinese but is more appealing. Nonetheless, residential real estate in tier 1 Chinese cities is one of the best investments there is. It’s like investing in Manhattan, Paris, London, SF 30 years ago. You know as wealth is created your property value will exponentially grow. So the answer is a resounding yes.
It’s a net positive if it was a 2 way street. Currently, I’m competing with the entire world to purchase a house in the Valley. Chinese investment is in SV, LA, NYC, Vancouver, Toronto, NZ, Sydney and Melbourne. All areas where locals are priced out, income inequality is rampant, and only those who sell are realizing actual wealth. Salaries in those areas are higher solely for housing prices. That means our companies losing out on billions due to foreign unfair investment.
Chinese aren’t moving to these areas in many cases. They are just investing and parking their money, some of it through illicit means. In Canada, the majority of Chinese RE investment is through the drug trade. They are legitimizing this.
In NZ xenophobia has increased significantly so much that they are planning to block all foreign investments period. That doesn’t seem to be a net positive to me. Australia has jacked up foreign investment taxes twice and Canada 3 times in just 2 years. The latter are also turning more xenophobic and honestly I don’t blame them.
