Sunday, July 10, 2016

Xinhua — China remains top buyer of US real estate

A total of $27.3 billion, 29,195 houses – What these numbers are saying is China has been the largest buyer of US homes for the second year in a row.

Increasing activity has brought both the dollar volume and number of units sold to levels far exceeding that of any other foreign demographic.
In terms of dollar volume, the Chinese bought 26.7 percent of the total amount of residential property sold, notes Lawrence Yun, chief economist at US National Association of Realtors as quoted by news media on Saturday.
In Profile of International activity in US Residential Real Estate, market researchers at NAR outlined some major trends in Chinese activity in the US market.
Among the major foreign buyers, Chinese buyers tend to purchase residential properties in central cities and suburban areas with relatively higher property prices. The average purchase price among Chinese buyers reached $936,615, almost three times of that of Canadians, the second most generous buyer group.
About a third of Chinese buyers purchased residential property in California, New York, Texas, Washington, and New Jersey. With roughly 39 percent of Chinese buyers buying in states other than these top five states, they are among the more broadly geographically distributed foreign buyer groups.
Ten percent of Chinese buyers made purchase in the city of New York alone. Other buyer groups tend to purchase properties for vacation purposes, while New York drew Asian buyers most likely for reasons related to geographic proximity, cultural similarities, and job opportunities.
Buyers from China were more likely to purchase residential property for the use of a child studying at a US university. 13 percent of Chinese buyers purchased the property for the use of a student.
Foreign buyers from China were more likely to pay cash. Fifty percent of reported transactions were all-cash sales, while among Chinese this number is 71 percent; only 20 percent obtained mortgage from US sources.
Asia Society and Rosen Consulting Group have also published a joint report on Chinese investment in US real estate, suggesting that Chinese investors have spent $110 billion on US properties in the past five years. The number is seen growing by 20 percent every year and may reach $218 billion as of 2020, the report concludes.
A Chinese student purchased the house across the street — 5 bedrooms and a pool. The house was on the market for some time since the owners, a retired couple whose family was grown and left the nest, wanted top dollar and were willing to wait, even though they had already moved out.

China.org.cn
China remains top buyer of US real estate
Xinhua

11 comments:

Matt Franko said...

"Buyers from China were more likely to purchase residential property for the use of a child studying at a US university. "

the schools over there are shit....

MRW said...

the schools over there are shit....

And you know this, how?

Matt Franko said...

Uhhhhh their own people don't even want to go to school there?

MRW said...

Uhhhhhh, no. You don’t understand the Chinese mindset. It’s the prestige factor. (No different than rich kids wanting to attend Oxford and Cambridge instead of Harvard or Yale at the turn of the 20th C.)

And they know that because of the education they get in China--specifically in maths and science--that they can ace getting into US universities if they apply in time to meet the US-univ foreign student quotas.

Having a US degree also confers a Chinese student’s ability to converse, read, and write in English at a scholarly level which increases their job opportunities at home.

MRW said...

We, on the other hand, insist that our students grow up learning only one language, English. And even that is poorly attained.

Instead of making it a mandatory requirement that you cannot graduate from high school without being able to read, write, and speak English, Mandarin and a romance language choice (Spanish, French, Italian, etc).

Norway has four language requirements: Norwegian, English, and two electives. Can’t graduate from high school without them.

Matt Franko said...

"You don’t understand the Chinese mindset."

a truer statement has never been made....

Bob said...

I'm suspecting you don't want to understand...

Tom Hickey said...

The fact is that is probably impossible to get a handle on how Chinese think with out knowing Chinese well and living among Chinese people for a while. That is true of other cultures, too, although the differences may not be as great.

Erik Tømte said...

@MRW: not entirely correct. You can opt away from the 3rd language in norwegian high schools (it starts in 9th grade) and choose an additional year with english language. Basically aimed at those struggeling with english and school in general. This also applies to the trade schools..

intajake said...

yeh we have rich chinese kids buying up everything here too,driving around in expenive cars.
Use corruption to steal all the wealth then set up an escape plan in the west by buying loads of real estate.

Countries like India forbid foreigner from buying land......western countries should do the same.

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