There's not going to be any change in money coming in to buy property from foreign buyers.
What you're actually going to see is a cottage industry of lawyers setting up citizen-owned shell corporations to funnel this money through -- minus their fees of course.
Welp, then, a law will be erected that forces lawyers to report info of shell companies if they are involved in real estate deal.
Just a few months ago, US govt started a program where if a foreigner buys real estate of a certain value ($4 million?) in certain hot markets like Los Angeles, NYC, they have to report it to Treasure or IRS. As of now, that value is too high to be effective imo, but there are ways.
So my family had a house in Forest Hills Gardens (NYC) that we were selling in early '07 listed at $4.5mil. August-September of that year happened and we had to take an immediate $2mil haircut (eventually more like a $2.4mil one). Luckily it was owned since the 50s and not some crazy leveraged investment vehicle.
It still took an additional 6 years (roughly) to sell, but throughout that whole process, 99% of the potential buyers, including the eventual purchasers, were Chinese nationals. I lived in that house and met everyone that came through (including the time Anna Chapman came through to show the house...wow).
There's an entire class of real estate here that just has no market without Chinese money coming in.
Isn’t another way of looking at this to say that the presence of Chinese money artificially inflates the prices of some classes of real estate past what the rest of the market will bear?
It's possible. It's also just possible that the average American family in New York doesn't have much need for a house with 5 bedrooms. I don't have enough data points to draw conclusions here.
What you're actually going to see is a cottage industry of lawyers setting up citizen-owned shell corporations to funnel this money through -- minus their fees of course.