3 ms·

Doesn't matter if it's rented or not, it drives the price up either way.

• ben_w 8y ago
  If it’s rented out to a local or sold to a local, the ratio of buildings to locals is the same. Supply or demand (or things outside this context such was wages) has to change for prices to change.
  • moorhosj 8y ago
    You assume that the ratio of buildings to locals is the sole input for real estate prices. If an external rentier enters the market and realizes yield, other rentiers will follow. This increases demand for housing assets, not necessarily housing utility. this is the problem they are trying to solve.
  • user5994461 8y ago
    Foreign buyers increase the supply of cash. It drives buy prices up, which in turns drives rent up slightly.