As high unemployment following the Corona-virus pandemic saps house-buying demand, commercial-property investors are looking to take advantage of falling prices.
In the United Kingdom, house prices are expected to fall by 5% this year, according to a Reuters poll of property-market analysts. Prices won’t recover until the end of 2022, showed the survey.
Meanwhile, Hong Kong and mainland China are taking advantage of cheaper prices in London, buying up as much real estate as they can, according to a report from London-based brokerage Beauchamp Estates.
Investors from those regions now account for 15% of international buyer transactions priced above $1.22 million in London’s prime areas. They also acquired 20% of real estate there priced above $10 million.
That is a problem in the making, there are no local buyers or not enough anyway and the buying power comes from abroad, the end result is a speculative market and the next step is that the housing market inflates to a point where the locals can not afford the prices an they get displaced.
I’ve seen this where I live, it got so bad that the house that was sold for 200k went up to 700k in a couple of years. The funny thing is that this does not happen with the wages, the wages actually end up getting stacked while everything else skyrockets.
However, China needs to be very leery. The UK courts legalized the theft of Venezuela’s gold. In the future, would you be surprised if the same court system, invalidated China’s real estate purchases, without a refund.
For now, it is a peaceful take-over of Britain, which is good for the British people because the British government is so inept in managing the country.
RT. com / ABC Flash Point News 2020.