Why Chinese investors are pouring money into US real estate?

Eddy-Galeotti_112976986-1024x454

“There’s a fear that Chinese buyers, who have been such a market maker in parts of the United States, may pull back,” said economist Jim Costello of Real Capital Analytics. “Those fears are a little unfounded.”

Costello — and others like him — points out that the resilience of Chinese capital is simply not poppycock, but is, in fact, real, based on the numbers.

According to one reputable online source: Commercial real estate isn’t the only type of property seeing large inflows of Chinese money. The country’s investors have also been active in residential realty.

They bought $28.6 billion in American residences from April 2014 through March 2015, accounting for 28 percent of all foreign purchases by dollar volume, according to data from the National Association of Realtors.

The homes they acquired tended to be on the luxury side; the average house in the U.S. sold for $255,600, but Chinese buyers spent on average $831,800 for their American homes….Chinese citizens are starting to think money in the bank isn’t safe because it won’t gain any value if the renminbi is still devaluing, so people will look to real estate as a solid investment channel, said David Ji of Knight Frank, an international real estate agency….Chinese are the leading foreign buyers of American homes. In fact, as stated earlier, they represent 28 percent of all homes purchased by foreign buyers last year…” as reported by the Inman.com.

http://www.inman.com/2015/09/23/why-chinese-investors-are-pouring-money-into-us-real-estate/

Leave a Reply

Your email address will not be published. Required fields are marked *