Chinese investors scramble to sell overseas properties amid shaky economic conditions
- As the Chinese property crisis continues and the growth of household wealth dwindles, some have had to sell their overseas investments
- But with a saturated market and very few buyers, property owners are struggling to offload their foreign properties
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Chinese investors offloading overseas properties
Soon after China decided to lift border controls in January, ending three years of zero-Covid measures, Stephen Yao embarked on a new mission.
Property used to be the most favoured investment for Chinese people engaged in wealth accumulation, when it promised rapid and steady economic growth. Small apartments and condos in Southeast Asia, especially Thailand, were a popular choice for the Chinese middle classes in the late 2010s due to affordability and geographic proximity.
But amid a bumpy reopening recovery, a protracted property crisis at home and dwindling growth of household wealth, some have struggled with worsening financial conditions and had to scale back overseas investment.
If we take into account rental returns and changes in exchange rates, most of their property investments overseas are actually profitable in terms of yuan
“If we take into account rental returns and changes in exchange rates, most of their property investments overseas are actually profitable in terms of yuan,” Yao said.
“But a number of them can no longer afford the final payment for their property investment and desperately need cash to solve their domestic financial problems, such as business failures, lay-offs and mortgage loan defaults,” he said.