Sharran Srivatsaa of Teles Properties Featured on the Impact of China’s Economy on Real Estate in OC Business Journal
Posted by Teles Properties — November 4, 2015
BEVERLY HILLS, CA - Teles President Sharran Srivatsaa spoke with the Orange County Business Journal on the impact of China’s economy on real estate in the luxury markets of California. Here is a quick summary of the interview and Sharran’s comments on the topic:
- The uncertainty in the Shanghai and Hong Kong equity markets has triggered numerous “flight to safety” conversations targeting US real estate, and although the devaluation of the Yuan has intrinsically made US real estate a little more expensive dollar for dollar, it is still being viewed as a less volatile and higher quality long-term investment.
- We have been receiving numerous inquiries from private bankers and asset managers not only regarding one-off purchases but to explore a portfolio of US real estate investments for their Asian clients, particularly focused in the luxury markets of LA County and Orange County.
- The Asian investor’s logical and emotional love affair with Southern California’s high-end market lies beyond just the lifestyle components of weather, landscape, and locker room street-cred… it is grounded in the “confidence of value” which is referenced by the ability of these high-end market real estate values to recover gracefully from significant market downturns or even showing thoughtful immunity to blips of global volatility.
- China’s recent breakthrough into a global economic hub has created tremendous opportunity for the Chinese nationals, but the high-correlation of asset classes and the volatile Asian markets are forcing investors to find “portfolio safety” in other parts of the world. US luxury real estate has emerged as one of the top choices given the stability of values over time, structured ecosystem of private property laws, and the rules and regulations to support homeownership as a whole.
Sharran’s comments appear in the special OC Business Journal report: High-End Homes Here Hedge Against China Turmoil. Real Estate Experts Weigh In on Possible Local Effect