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Foreign investment in U.S. real estate has been rampant in recent years, as investors seek to diversify their assets in the American marketplace. Whether this buying activity will remain constant or eventually diminish is a prevalent topic in the housing industry, and real estate platform Investorist reveals that for now, these foreign investors are here to stay.
Upon conducting detailed interviews with 120 agencies across China, Investorist found that in the coming 12 months, Chinese investors will focus their buying power in,
- California: Los Angeles, San Francisco, Sacramento and San Diego
- New York: Manhattan, Brooklyn, Queens, The Bronx
- Florida: Miami, Orlando, Tampa
- Texas: Dallas, Houston, Austin, San Antonio
- Washington: Seattle
According to respondents, Chinese investment in U.S. real estate is looking as strong as ever, and 70 percent of the study’s participants expect an increase in sales volume throughout the next year. “The demand for US properties is strong and getting stronger,” Jason Niu of Fang 360 stated. “However, the US is a big market with many cities and many, many available projects. For most of our clients, they choose the project and where to invest, in connection with their migration purpose.”
The foremost reason driving these buyers to the U.S. is their children’s education, followed by migration. In the U.S., the preferred price range for Chinese investors is between $300,000 and $700,000; and surveyed agents reported selling 10,540 American properties to Chinese investors in 2016, a 40 percent rise from the previous year’s sales.
Whether it’s to diversity fortunes, live close to a renowned university, or for the attainment of prestige, Chinese investors continue widespread purchasing of American real estate. For hopeful homebuyers in the U.S., these investors can pose competition in the marketplace—given their preferred price range and purchasing power—for real estate professionals, they are a significant business avenue.