Demand for houses, both inside and outside China, fuels a strong spike in house prices, says the latest Hurun Global House Price Index 2017 Half-Year Report, set up by its chief researcher Rupert Hoogewerf. It is the first report taking the value of the Chinese Renminbi as a starting point, as most Chinese investors would do, Hoogewerf tells International Investment.
The report is different than some others that rank global markets on the basis of affordability in that it considers the annual house price changes and rental yields alongside the change in the value of the Chinese renminbi, the currency with which Chinese investors typically start out with as they look to invest.
Also unlike some other reports, it focuses on the most popular Chinese investment destinations, with the result that there may be cities in the world with higher property rises than those included in its database but which aren’t included because they aren’t considered of interest to Chinese high-net-worth individuals.
With respect to the rapid house-price rises in these Chinese cities, Rupert Hoogewerf, the British founder, chairman and chief researcher of the Hurun Research Institute, noted that they are generating “real concern in China about the impact on the future economy”.
“Although there are measures in place to curb excessive growth, by restricting high prices on new developments, for example, there is an underlying demand for housing that is fueling further potential price hikes.”
Among high-net-worth Chinese, Hoogewerf went on, “global asset allocation”, led by real estate, remains a major trend, in spite of Chinese government efforts to curb overseas investment by its citizens.
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