Yuan Depreciation Not Helping As Population Leaves Third and Fourth Tier Cities

Ya Ho agency Guo Yi, director of marketing for the surging news that the continuing depreciation of the renminbi will make foreign investors to sell yuan-denominated assets more substantial outflow of funds. In terms of the impact of the property market, the limited impact of first-tier cities, as cities belonging to a net inflow of urban population, incremental population to support the purchase of consumer-tier cities.

But the larger impact is on third- and fourth-tier cities real estate market, bad local property market. Population exodus from third- and fourth-tier cities is clear, the property market is facing a big problem inventory pressure, driven by the depreciation of the renminbi and depreciation of assets, making further capital outflows, capital flows to first-tier cities or overseas, this will result in a vicious cycle.

iFeng: 人民币持续贬值影响楼市 利空三四线城市房地产