The big world news story at the moment appears to be regarding a trade war that has broken out between the US and China (although it could be argued that it is between the US and the rest of the world). Of course such a war will have an effect on many key elements of each world’s economy.
Being who we are, let’s talk about how it might affect property prices.
Generally speaking property growth relies on a stable local and world economy.
Yes there will always be blips on the radar but generally if a country is experiencing economic growth then property price growth follows. Any big destabilizing factor on a countries economy will affect the growth and in turn property prices.
Whilst the current trade war (or ‘Trade Dance’ as President Trump just recently referred to it in a tweet) is not crippling any economy it may have the potential to do so.
Many analysts are pointing out that a full-blown trade war would not end up well for anyone. We know Donald Trump is a ‘Business’ President so we must assume he will eventually do what’s best for business and end up making a deal with China.
For the moment it does not seem this trade war is having an effect on property prices. But the world scene appears far from stable. It might be the trade war, or something completely different, but it seems very possible that a major world event may soon have a very de-stabilizing effect on world economies and with that property prices.
Am I being overly pessimistic?
Perhaps I am but many would agree with me. I read many analyst articles each day from several different countries. I am not alone in thinking that something big is also around the corner.
For now we will watch the trade war with interest. Those with property interest in the US and China (or those with both) will hope that a middle ground is soon reached and Donald Trump and Xi Jinpin are friends once again.
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