Tanvir Zafar
Independent Analyst
The US dollar’s weakening trend in 2025, driven by the Trump administration’s aggressive fiscal policies and trade tensions, has shifted the global investment landscape. For US investors, that means recalibrating strategies on how and where to invest both domestically and across global markets.
The dollar drop squeezes US purchasing power overseas but also raises clear signals to diversify or get left behind. Meanwhile, the Chinese renminbi (RMB) remains relatively steady, as recent monetary easing by the People’s Bank of China aim to stimulate growth while maintaining currency stability.
Why does this matter? Because macro capital movements follow currency trade fluctuations, and smart real estate investors watch these flows closely.
The cooling US real estate market
The US housing market is on slow grounds. The home price trajectory slowed considerably with June 2025 annual price growth at just 1.3%, marking the slowest increase in two years.
Sun Belt cities like Dallas and Austin are winning the popularity due to job growth and migration. Meanwhile dense coastal hubs like New York and San Francisco are feeling the pinch, as affordability is tightening and remote work continues to hollow out demand.
Renters are tightening their budgets too. Affordability pressures are mounting as 52% of renters spent a third of their disposable income towards rent. This financial strain is causing many renters to prioritize more affordable options as they extend their search time, leading to slower rent growth.
Meanwhile, demand for industrial warehouses is increasing as ecommerce volumes continue to grow. Per CBRE, ecommerce in Q3 2024 accounted for a record 23.2% of total retail sales (excluding autos and gasoline), and is expected to target 25% by the end of 2025.
China’s real estate outlook
China’s real estate market is navigating a complex regulatory environment working to balance the nation’s growth with financial stability. The government’s targeted policies aim to stabilize prices while encouraging infrastructure investments, particularly in second-tier cities.
Two major companies illustrate this momentum. China Vanke, the largest residential developer, delivered 45,000 housing units across 130 projects in the first half of 2025, amid market headwinds. Despite liquidity challenges, China Evergrande Group shifted to completing 15 million square meters of integrated residential and commercial projects in 2024, emphasizing multifunctional urban environments designed for greater resilience.
This shift reflects a broader global trend toward mixed-use, sustainable real estate development in China, aligned with the RMB’s relative stability amid global currency shifts. Stable RMB policies supports foreign and domestic investor confidence in these long-term urban projects.
In regional growth, the Tangshan Fengrun North New City Project for instance reflects China’s broader trend of developing mixed-use communities. It blends residential and commercial infrastructure to support economic growth and improve the quality of life in Tier-2 cities. The project, led by Tony Tandijono, spans over 1.1 million square meters and includes villas, residential buildings, commercial spaces, hotels, apartments, offices, and supporting facilities.
What this means for US investors
The weakening USD combined with relative RMB stability presents a nuanced investment landscape. For US investors, Chinese real estate projects may seem costly on a USD basis, but they represent access to some of the fastest-growing urban areas in the world.
At the same time, US markets require a tailored approach. Residential demand concentrates in growth regions like the Sun Belt cities, while industrial real estate trends are growing through increasing demand for ecommerce.
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Editors’ Picks
EUR/USD drops below 1.1600 on broad USD strength
EUR/USD stays under bearish pressure and trades at a fresh six-week low below 1.1600 on Tuesday. Despite stronger-than-forecast inflation data from the Eurozone, the pair struggles to stage a rebound as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.
GBP/USD attacks 1.3300, refreshing three-month lows
GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.
Japanese Yen flat lines vs. rallying USD; bearish bias remains amid BoJ rate hike delay
The USD/JPY pair extends its sideways consolidative price move through the early European session. Spot prices remain below the highest level in over five weeks, touched the precious day, and currently trade below mid-157.00s, nearly unchanged for the day.
Editors’ Picks
EUR/USD drops below 1.1600 on broad USD strength
EUR/USD stays under bearish pressure and trades at a fresh six-week low below 1.1600 on Tuesday. Despite stronger-than-forecast inflation data from the Eurozone, the pair struggles to stage a rebound as the US Dollar continues to attract safe haven flows amid escalating geopolitical tensions in the Middle East.
WTI jumps over 6% to top $75 amid US-Iran war risks
WTI jumps more than 6%, breaking above the $75 mark. Oil prices surge as the US-Iran war raises fears of supply disruptions. Goldman Sachs estimates an $18 per barrel geopolitical risk premium in Oil.
Gold drops below $5,200 on stronger USD, rallying US yields
Gold attracts some intraday selling and falls below $5,200 on Tuesday. The US Dollar climbs to a fresh high since January 20 and turns out to be a key factor exerting downward pressure on the commodity. Meanwhile, the benchmark 10-year US Treasury bond yield rises nearly 2% on the day, putting additional weight on XAU/USD's shoulders.
Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear
The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.
Middle East conflict ramps up a gear as energy price spike rips through markets
It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.
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