The Chinese Markets are in Turmoil, so what does this really mean for Puget Sound Real Estate?
King 5 Taps Realogics Sotheby’s International Realty on Foreign Direct Investment Trends
On August 29th, King 5 News reporter Ted Land interviewed Dean Jones, President & CEO of Realogics Sotheby’s International Realty (“RSIR”) and RSIR broker Lili Shang, to get their views on the Chinese stock market correction and whether that signals the end of overseas investment in the Seattle/Bellevue metro area.
“Ultimately, I believe these fluctuations in the Chinese markets are going to drive further interest in diversifying global wealth in the US, especially with real estate and immigration,” says Jones. “Insecurity in the equities markets within China, and somewhat arbitrary moves by state government like the currency devaluation, are reasons why sophisticated investors have had a wandering eye outside China for years. When these dramatic events happen it’s only a reminder that you can’t count on market forces to calibrate your financial security in China. The flight of capital to the US is happening because it’s viewed as stable, safe and prosperous – and that’s not going to change.”
Sotheby’s International Realty recently contributed to editorial coverage on the topic with Business Insider, agreeing that the market chaos of the past few weeks is likely to lead to an acceleration in the rate of real estate purchases by Wealthy Chinese buyers in the US and elsewhere.
Meanwhile, the Washington State China Relations Council (WSCRC) hosted a timely and insightful roundtable discussion on August 27th, with thought leaders in international business at the Seattle Metropolitan Chamber of Commerce. All eyes were on the volatile Chinese stock markets and recent moves by Chinese leaders to devalue their currency, as the panelists debated whether this was going to have a prolonged impact on the local economy. After all, Washington is the most trade dependent state in the union, and as a key gateway to Asia, it’s not going unnoticed by business leaders and members of the media.