patrick.net

https://boingboing.net/2017/01/28/chinas-capital-controls-are.html

“The market is being kept on life-support by Chinese money-launderers who smuggled their cash out of China before the controls came in; they’re using their offshore cash reserves to make payments on the properties they’ve speculated on (presumably they can access even more capital by remortgaging some of their properties).”

“The more sell-offs, the lower the prices will go, and the more sell-offs there will be. For example, about one third of buyers in London’s iconic Spire tower have actually made the payments they had promised to make. If 30+% of units in The Spire suddenly go on the market, the remaining units would likely see a decline in value. Skittish speculators might spook at that point, selling their units, triggering more price declines and more sales.”

#housing