Wealthy Chinese, desperate for property investments, turn to Detroit
Brief: Chinese property investors turns their eyes to invest properties in Detroit.
Would-be Chinese property investors, facing high real-estate prices at home, have been snapping up houses and buildings overseas for some time now. The trend is several years old and widespread enough that at one point, reports suggested China’s investors could spark housing bubbles in foreign markets.
And now, it would seem, Chinese buyers have picked much of the low-hanging fruit, and turning their eyes to more challenging property investments. Those include the down-and-out real-estate market of Detroit, a place many Americans would think twice about buying into.
In Detroit – which earlier this month was placed under the supervision of an emergency manager in an effort to heal the city’s finances – Chinese buyers are finding real estate at rock-bottom prices, with the People’s Daily reporting that a few properties can be bought for $100 or less.
Likewise, a television report on China’s state-run CCTV highlighted the buying spree in Detroit, with the head of a local property-investment firm telling the reporter that while some wealthy Chinese can spend $1100 on a single pair of designer shoes, they could instead buy two Metro Detroit properties for that price and still have $100 left over.
¡¡¡¡Source: Market Watch