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 clings to small gains near 1.1750
Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.
GBP/USD edges higher toward 1.3400 ahead of US data and BoE
GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.
Japanese Yen adds to strong gains and drags USD/JPY to 155.00 amid hawkish BoJ bets
The Japanese Yen extends its steady intraday ascent through the Asian session on Monday, dragging the USD/JPY pair to the 155.00 psychological mark in the last hour. Against the backdrop of the recent shift in rhetoric from Bank of Japan Governor Kazuo Ueda, an improvement in business confidence reaffirms market bets for an imminent rate hike this week.
Editors’ Picks
EUR/USD clings to small gains near 1.1750
Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.
GBP/USD edges higher toward 1.3400 ahead of US data and BoE
GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.
Gold stuck around $4,300 as markets turn cautious
Gold loses its bullish momentum and retreats below $4,350 after testing this level earlier on Monday. XAU/USD, however, stays in positive territory as the US Dollar remains on the back foot on growing expectations for a dovish Fed policy outlook next year.
Solana consolidates as spot ETF inflows near $1 billion signal institutional dip-buying
Solana price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout. On the institutional side, demand for spot Solana Exchange-Traded Funds remained firm, pushing total assets under management to nearly $1 billion since launch.
Big week ends with big doubts
The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.
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