The following article discusses an increase in real estate sold to Asian investors. As wealth grows across the Asia region, wealthy Asians are interested in parking their wealth in key cities in the developed world. Asian investors are interested in western cities because of their economic openness, the upside of their apartment markets, and the increasing appeal to living and visiting these cities. As a result of changing currency value, Asian investors are able to acquire western properties at a bargain because of the increasing value of Asian currencies against the dollar and pound. Asian investors are attracted to the stability in the "brick and mortar" as opposed to the riskiness associated with equities and financial products.
Link: http://www.cnbc.com/id/46995476/
Link: http://www.cnbc.com/id/46995476/
Top 25 Cities for Global Property Investment in 12 Months to Q3 2011
The purchasing power in the region of Asia has been increasing. Especially because 3 of the most important emerging markets are in this region (India,Russia and China). However, I am quite skeptical if the global crisis suffered by the western hemisphere has helped these countries. Real Estate in the USA has been largely affect and this has caused an opportunity for the foreigners to purchase something in this region.
ReplyDeleteThe vast majority of nations around the world have a fluid currency exchange rate that fluctuates day by day in response to changes in national and global economic situations. I find it very frustrating that the Chinese government has devalued its currency at a flat rate that does not fluctuate like other currencies do. As a result, the Chinese yuan is unnaturally inexpensive compared to other currencies like the pound, euro, or dollar.
ReplyDeleteMany politicians from nations that trade with China have also argued that the Chinese devaluation of its currency is an unfair business practice. I feel that this article highlights a product of this unfair practice since Asian (Chinese) investors can invest in Western businesses and property at bargain prices.
Alex Conlan