Update re: Chinese investors in the US Real Estate Market
According to the Hurun Report Immigration and the Chinese High Net Worth Investors 2016, 60% of those HNWI individuals intend to buy overseas properties within the next three years. While not the only target for those buyers, Los Angeles remains near the top of the list in the US. More astounding is the report that 92% of Chinese consumers plan to travel internationally in 2017 and a whopping 57% intend to purchase property while overseas, as reported by Juwia.com’s 2017 Travel Survey.
- Location: Did you know that in China, Hong Kong or Singapore, locations such as San Marino, Arcadia and the San Gabriel Valley are known destinations? With the currency restrictions, now other less expensive areas are increasing in popularity.
- Education is a key motivator for Chinese investors. Even if they do not need to use the local schools, they view it as a sign of a better location. Some buy a home so that their college-aged children can attend UC schools now or in the future.
- Many overseas investors buy and hold: for them the real estate prices in the US are still much cheaper than at home. If they really want a property, they are likely to pay more than domestic buyers.
- Some investors are looking for retirement homes for themselves or other family members. Walking distance to commercial areas where Chinese is spoken, as well as access to good medical facilities, is important.
- Overseas buyers are in a hurry. They usually combine house hunting with a college visit, holiday vacation or business trip. Time is of the essence. They are here to make a deal. Long drawn out negotiations don’t work.
- Know the Chinese holiday schedule: Over in China, the end of May marks yet another long weekend holiday – the Dragonboat Festival on 28-30 May 2017 – which could herald another wave of Chinese arriving to property hunt.
- China has a long tradition of respect. A home presented with dignity by a professional commanding respect is important. These wealthy buyers are used to being in a position of respect and dignity at home. They want a home that reflects that same image.