Joe Sitt: China's Currency Devaluation Isn't Necessarily a Bad Thing
While some real estate execs are sweating over the negative repercussions of August's Chinese currency devaluation on New York real estate, Thor Equities CEO Joe Sitt sees it as a boost for foreign investment. At the New York Multifamily Summit on Wednesday, Joe argued that this devaluation is just the first of many possible steps in further devaluations. The government's objective is to revive the economy by making Chinese exports more competitive, Joe says, which might cause Chinese investors to speedily purchase more American assets before currency falls further. It's still too early to predict an economic apocalypse, Joe says, as it's "still early in the game of the uncertainty in their local markets." Of course there were opposing opinions. Terence Tang of Colliers International's Singapore office believes there'll be a slowdown in asset buying. And economist David Dollar believes a 2% devaluation won't even have a tangible effect on Chinese investment. Who's right? Only time will tell. [TRD]
