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What are the new trends of overseas real estate
文章作者:admin 上传更新:2017-09-28

Wen/reporter zhen aijun

 

The arrival of the era of low interest rates in mainland China has provided investment opportunities for the property market in many cities. However, due to the consideration of asset allocation and children's education, overseas real estate is still the investment target concerned by many hnwis. But need to remind is that the current investment environment, policy have some changes, investors should make corresponding adjustments.

 

New York and London received the most attention

 

Despite the recent sharp rise in mainland property prices, this will not affect the choice of high net worth overseas real estate allocation.

 

Yuechen Yang, director of knight frank international and head of research and consulting in Shanghai, said overseas property is still an important asset allocation option for high net worth individuals in mainland China, who want to spend 20 per cent of their assets on overseas properties. The reason for this choice lies in the needs of children's education and so on.

 

According to the 2016 wealth report released by the international real estate agency and bank of China international, New York and London are currently in the top two places, attracting the most attention from international buyers. In addition, Hong Kong, Singapore, Miami, dubai and other cities are in the top three. Of course, if you look at house prices, Monaco comes out on top, with a million dollars buying only about 17 square meters, or one bedroom.

 

Because of the rise of international purchasing power, the supply of luxury houses in many cities is on the rise. There has been a marked increase in the supply of luxury properties in cities such as New York, London (especially around the central London area), Sydney and Melbourne.

 

One notable change in the way hnwis are investing in overseas properties is the focus on commercial properties. "More and more uhnwis on the Chinese mainland are turning their eyes from the residential market to the commercial property market, especially in the us, whether invested as individuals or through private equity funds," said frank chi, knight frank director and head of research and advisory for greater China. "This trend is not only reflected in wealthy Chinese investors, but we will see more small and medium business investment in regional hubs in the United States in the future.

 

Which cities to watch out for

 

If you are considering overseas real estate allocation, what cities are worth paying attention to? Due to the different types of investment properties, we will introduce residential and commercial properties of the focus on the city.

 

If you choose to invest in luxury homes, based on the growth of economy and employment demand, as well as the comprehensive consideration of infrastructure, urban reconstruction, education quality, environment and lifestyle, luxury investment Suggestions mainly focus on the United States, Germany and other countries. It is understood that the United States is leading the economic recovery in developed countries and has shown its ability to turn innovation into industry, so this will inject growth momentum into the core cities of the United States, and the level of employment and wealth creation will remain high. At the same time, strong foreign investment demand can also mitigate the impact of the 2016 interest rate increase and the appreciation of the dollar. Germany, the eu's largest economy, has seen a 23 per cent rise in housing prices and sustained wage growth over the past five years, even as the pace of residential construction has yet to keep pace with real demand.

 

For the choice of key investment cities, experts say that including New York, London and other options. The housing markets in New York and Los Angeles have been recovering for three years and are still on the rise. London has long been the focus of the world's rich, with opportunities for high-net-worth individuals from the Middle East and other gulf countries as well as Asian countries.

 

Second homes or vacation homes, including the gold coast and meribel, are also available. It is understood that areas such as the gold coast of Australia, the cote d 'azur of France and the ibiza island of Spain are the best choice for the purchase of the second residence. Demand has also been strong in places like meribel, aspen and chamonix, where skiing is popular.

 

If you are considering investing in commercial properties, focus on London, Berlin and other cities. Prime locations in the central business district, such as Birmingham, Manchester and Edinburgh, as well as London's brahmbury, farringdon and old street/morgate multi-tenant offices, are good places to look.

 

For Germany, Berlin's growing start-up community will continue to drive the office market as new innovative areas are built. Over the next three to six years, investors will have a variety of investment opportunities to choose from, leading to a number of office opportunities in some locations, including charlottesburg, kreuzberg and tilgarten park. While not yet prime locations, they have potential for rental and revenue growth.

 

For the United States, the main focus is on opportunities from New York and the west coast. New York could focus on the brooklyn block, which has seen a significant increase in activity recently due to its thriving neighborhoods and proximity to Manhattan. Investment opportunities on the west coast come from the San Francisco bay area, which is home to a large number of tech start-ups valued at more than $1 billion, creating a large rental demand that makes office properties a good investment potential.

 

Keep an eye on interest rates and policy changes

 

Experts caution that there is much to be said for global asset allocation.

 

Liam Bailey, head of global research at knight frank, points out that many cities, such as New York and London, are experiencing slower growth after strong price rises. At the same time, the rising interest rate makes the cost of holding overseas assets rise, which will lead to the fall of housing prices. In Hong Kong, for example, the monetary authority of Hong Kong raised the base rate by 25 basis points to 0.75% at the end of last year in response to the interest rate hike by the federal reserve. Industry insiders generally believe that Hong Kong housing prices will be lowered by 5% this year.

 

At the same time, experts warn of the need to keep an eye on policy changes. In Hong Kong, for example, the Hong Kong monetary authority (hkma) introduced regulations early last year that required buyers of small - and medium-sized residential units (SMBS) with a price of less than hk $7 million to pay up to 60 percent of the mortgage requirement, meaning buyers of SMBS must put up to 40 percent down. Canada, for example, is even discussing restrictions on non-resident home purchases. At the same time, Paris house prices have also been reduced because of heavy taxes.

 

Experts suggest that investors should focus on quality properties in core cities. Liam Bailey, chief executive of Liam Bailey, said: "in the long run, investors who focus on major urban centres will be better off because these markets tend to rebound first in a downturn and show relatively strong liquidity across the market cycle."

 

Experts also suggest that investors may consider new investment instruments to obtain more investment opportunities. Lee Elliot, head of commercial property research at knight frank, said that while the wave of innovative financial instruments, such as property derivatives, has subsided in the wake of the global financial crisis, new innovative products will emerge for some time to allow private investors to acquire commercial properties. We live in an age of crowdfunding, and these partnerships will be developed in commercial property. In the future, more private wealth is expected to be invested in joint ventures with real estate professionals and to buy office buildings through tiered land rights. This would allow the wealthy to invest in large areas of property that are difficult to acquire. Indirect purchases of real estate products will also continue to emerge. Especially in emerging markets such as India and China, real estate trusts will become mature investment vehicles.