Chinese Investors Forced to Borrow

While less of a driver here in San Francisco than in New York, London and other global major cities, all-cash Chinese investors have been an important of driving up property values during our most recent up-cycle.

Demand from these well-funded buyers remains strong, ut with the Chinese government continuing to impose capital controls on its citizens, all-cash offers are becoming increasingly rare. And with an estimated 100,000 millionaires minted each year in China, any hiccups in this source of demand are worth noting.

As noted in this piece out of New York, lenders catering to Asian investors have been a surge in demand for purchase money loans. This shows that despite high prices and a cooling market, our US real estate remains an attractive place to park money.