Wealthy Mainland China buyers are snapping up US residential and commercial properties; in fact, the Chinese have crept up just behind Canadians as the second-highest foreign buyers of American homes. For those who want to make investment in the currency trading, the foreign exchange trading or the home loans NZ, you can check online.
Not surprisingly, interest in the country’s real estate climbed steadily during the disastrous housing market meltdown. Sinking home prices attracted overseas investors in droves, and have been on their radar ever since. Consider this – current prices of single-family homes in the US are one-third lower than the same back in ’06. Not just this, the prices are also more attractive than those for similarly-sized residential units in Australia, Canada and the UK. It is no wonder then that high-income Chinese citizens have set their sights firmly on America.
It appears that Chinese buyers don’t seem to mind splurging on grade A properties in New York and California. They are increasingly opting for affluent neighbourhoods, with real estate agents revealing that a significant number of buyers are interested in homes in the $800,000 and above range. Residences in the Big Apple are popular among the Chinese with very high discretionary incomes – $20 million apartments are being paid for in cash! The buyer base also comprises of those looking to swoop in on foreclosed homes in Florida and Nevada.
New York is also the preferred destination for commercial property investments, with plush office buildings and luxury hotels in Manhattan and strategic locations like Times Square being bought by major Chinese companies. So much so that US real estate agents and developers are trying to win business by strategizing with partners in China and adding Chinese language sections to their websites.
There are multiple reasons why Chinese buyers are fast emerging as luxury and uber-luxury buyers of US real estate. Here’s a look at some of them. A rising national currency: The Yuan is up 8 per cent from 2010, which translates into more purchasing power. Investment restrictions in home country: The restrictions imposed by the government on the purchase of property in mainland China have seen Chinese look for greener investment pastures.