Chinese Buyers are Keen on Property Investment in the US
According to a report by the U.S. National Association of Realtors (NAR) recently, Chinese investors now make up the second-largest group of foreign buyers of homes in the US, accounting for $9 billion of sales in 2011. According to a report in Financial Times, with a “huge” influx of wealthy mainland Chinese looking towards purchasing high-end properties across the U.S., China is now one of the fastest growing sources of international buyers in the U.S. real estate market.
New York: Now, as reported, buyers from China are snapping up luxury homes with cash, in major U.S. cities such as New York. Moreover, they are also starting to look at commercial buildings and hotels in Manhattan. In the year of 2010, a Chinese businessman, who was not identified, paid $33.2 million for a 5,500-square-foot apartment with 20-foot ceilings and views of Central Park in Manhattan. That was the highest price paid for Manhattan apartments that year.
Southern California: In recent years, attracted by the pleasant natural environment, well developed economy, and great education resources, Chinese buyers flock into the property market in California, which is one of the top 5 property markets for international buyers. In view of that, many local contractors begin to add some Asian taste in their new constructions. Chinese Feng Shui element is taken into these new buildings. As the Bloomberg Newsweek reported, the purchases made by Asian immigrants, especially those from China, is one of the reasons for the booming of the property market in Southern California.
Hawaii: Hawaii Business’ report said, 3.6% of all homes sold on Oahu between May 2011 and January 2012 went to buyers with a foreign tax bill address. This number is roughly twice the national average. In Hawaii, the second largest group of international buyers is from China, accounting for 6% of all international sales. This helps islands being one of the top 10 real estate markets in the US for international buyers.
A report from the Bank of China and the Hurun Report said, nearly half of China’s richest are considering emigration, with the United States, Canada and Singapore being the top three destinations. The most common reasons for them to emigrate are their children’s education, a desire for better medical treatment, and the fear of pollution in China. Compared with the houses in China, the US properties are much cheaper in terms of price per unit area of land. They are worthwhile no matter whether they are bought for investment or self-use.
(Written by Sabrina Wu, Sr. Manager of Business Development, Glogou Inc. Contact: email@example.com）
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