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Saturday 4th July 2020
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Chinese ban no impact on property sales

Chinese ban no impact on property sales

BUSINESS associations said Friday there has not been any reduction or problems with the sales of real estate following China’s decision to restrict outbound investment in the field.

In August, China introduced new rules on overseas mergers and acquisitions, defining three investment categories: banned, restricted, and encouraged.

Real estate was among the restricted industries and this raised fears in Cyprus that it would affect the nascent growth of the construction sector, which had taken a substantial hit in the run-up to the island’s bailout and after 2013.

Keve secretary general Marios Tsiakkis said no reduction in the sales has been seen following the Chinese decision, which affects all countries.

He said there was still a lot of interest from Chinese organisations to invest in Cyprus and a number of possible projects were being discussed.

Those mainly concerned tourism and the creation of investment funds that would use Cyprus as a base.

Director of the island’s investment promotion agency, Natasa Pilides, told the Cyprus News Agency there was no data showing a fall in sales but “it is something that needs to be explored so that there won’t be an impact in the future.”

Pilides said the investment from China mostly entailed small sums of some €2m for citizenships and it was not something that would make a huge impact.

Property developers told the Greek language newspaper Phileleftheros that property sales to the Chinese sales are falling. This decline raises serious concerns as it may result in the inability to sell properties being built for this category of buyers.

The newspaper also reported that several Chinese heard about the impending restrictions and rushed to purchase before the restrictions came into force.

2 COMMENTS

  1. The “rushed to purchase” comment before the Chinese impose restrictions might be account for the recent slight flutter of property price increases across the island.

    Going forward I would suspect that it will make a difference (though this is – of course – unsubstantiated opinion and not data-led fact).

    Any market is supply & demand. A hopeful consequence of this restriction might be that it forces the banks to come back to Brits they treated the way they did with some decent rescue packages now the second ‘millable’ cash cow has just shut off it’s udder?

    One thing coming out of this now at least should be clear to the Cyprus government & the banks. The Russians let you know in no uncertain terms what they thought of your bail-in, and the Chinese have just cut you off at the knees. It’s been very quiet how relations are going with Iran and Qatar after them being trumpeted loudly as ‘our new friends’ a few years ago.

    Maybe dealing with the British wasn’t so bad after all Cyprus?

    Maybe it’s time to come back to the table and right the wrongs you did?

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