patrick.net

AD says

but I don't think Chinese foreigners own more than 5% of US residential real estate

It might not be as simple as that. I know people from China living and working (legally) here in silicon valley that pool money from friends and family in China to buy places here. That's a type of "foreign buyers" that wouldn't really count in your 5% statistics. But, that would dry up if China clamps down harder on money transfers. It would also slow housing speculation is people in China were more concerned about the short-term problems of corona virus; but that, at least, would resume when the pandemic subsides.

When the SHTF, cash is king.

A girl told me once that when Chinese pull out, you can't tell.

Article is ridiculous speculation, perfect for CNN. Or, a crude attempt to sway the markets on rumor for an investment sortie. Also perfect for CNN.

SunnyvaleCA says

AD says

but I don't think Chinese foreigners own more than 5% of US residential real estate

It might not be as simple as that. I know people from China living and working (legally) here in silicon valley that pool money from friends and family in China to buy places here. That's a type of "foreign buyers" that wouldn't really count in your 5% statistics. But, that would dry up if China clamps down harder on money transfers. It would also slow housing speculation is people in China were more concerned about the short-term problems of corona virus; but that, at least, would resume when the pandemic subsides.

Good point, but yes the 5% statistic is based on 100% foreign investment, and not "mixed" or foreign-domestic investment.

But I suspect if there is any panic the Chinese foreign investors would first withdraw from their stocks and bonds portfolios and deposit the proceeds into checking and savings accounts.

Housing naturally does not offer the liquidity for a panic / quick sale.

AD says

Housing naturally does not offer the liquidity for a panic / quick sale.

The lure of having a property is that it's seen as much more stable, thus reducing the "panic" part. Also, it seems that some Chinese, apparently, don't understand this whole "property tax" thing... you mean you buy a property and then pay $20k/year "rent" to the county tax assessor's office — might as well live in an apartment!

SunnyvaleCA says

Even if Chinese stop speculating on Bay Area housing and house prices drop in half, houses will still be extremely expensive / overpriced.

Lol, so true!