Thursday, October 31, 2013

Where Global Property Buyers Are Headed

Its a funny thing really. You have the rich folks going global to buy properties, usually after owning more than 2 in their home turf. Its clearly unique to see that all these rich folks do not think alike. There are natural exposure considerations. Proximity and close knowledge considerations. Tax and holiday considerations. Retirement and children's education considerations. Political funds sloshing and illegal money laundering purposes. But the driving point is that they should try to make money and in a currency with potential upside, or their downside is overwhelmed by the capital gains consideration.

They are ranked in terms of total money outflow. I think its surprising to see Singapore so high up, but methinks a substantive portion of that money belong to Malaysians and Indonesians.You know how restrictive the rules for money outflow is for both countries. The same for UK as you can also assume that its also largely Russians living there doing most of the buying.

1)  CHINA - HK, New York, London

2)  SINGAPORE - London, Malaysia, Tokyo

3)  RUSSIA - London, New York, Monaco

4)  UK - Cote d'Azur, Italy, New York

5)  USA - London, Paris, Bahamas

6)  HK - Sydney, London, Tokyo

You will note that China money from China behaves differently from China money in HK. You can also bet that a large portion of HK money going out also belongs to China residents who somehow can reside in HK. The surprising part was the money heading to Tokyo from HK, strange.

7)  INDONESIA - London, New York, Monaco

Again, Indonesians are strange people ... Monaco???

8)  UAE - London, Paris, Geneva

9)  ITALY - Geneva, Monaco, London

10) INDIA - London, Dubai, New York


Unknown said...

They also buy where they STASH their cash.

Looks like Malaysia and other SEA Countries have been receiving the third tier and below level of property buyers (retirees for Malaysia 2nd Homes Programme etc.). Its not worth for the government to bother about these investors as they don't bring in value same as the backpackers.

The ones that comes from China and others are more likely to be the property flippers and money launderers.

vince said...

How about Malaysian?

vince said...

How about Malaysian?

bruno said...

Next week will be an interesting week in the fx.The greenback is at the crossroads.A timid fomc announcement and the greenback came out kicking like a crazy mule.The euro had its worst week in a year.

The usd is either at end of a correction or the beginning of a new wave up.When markets do the opposite of expectations,watch out.An early week pullback with strong support to follow through on the upside,and we will flip positions.If we flip to long the usd,we will re-enter short S&P.

bruno said...

I just took 40 pics profit on the long Aussie,am am a happy camper.Now I will just sit around and watch the action before finally deciding what to do.

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