Deep-Pocketed Chinese Spending Billions on U.S. Real Estate
According to a report from a large global real estate firm, wealthy Chinese investors are likely to spend billions on U.S. real estate properties in the coming years.
There is no doubt that the current real estate atmosphere is attractive for many buyers. The Chinese rank at the top of U.S. buyers, followed closely by Canada and Australia.
The recent trend mirrors that of the 1980s when the Japanese entered the country’s real estate market, grabbing up properties in key areas of the U.S., including San Francisco, New York, and Los Angeles. China is the third most numerous foreign buyers in California, following Mexicans and Filipinos.
Dominican Republic buyers are the top investors in New York, and the Chinese closely rank second.
Overall, Chinese investors have spent more than $10 billion in U.S. properties in 2011, accounting for 9 percent of the total number of foreign buyers in the country.
The Chinese are speeding past other nationalities in 50 states. They still belong in the top five foreign buyers in 44 states of the country. In West Virginia and Massachusetts, the Chinese rank first while second in Maine, Indiana, Missouri, Hawaii, Wyoming, New York, and Colorado.
Because of the surge in foreign buyers, many real estate companies are starting to cater to this small but quickly growing niche market. Even those in commercial real estate are looking at a bright future as the Chinese are also interested in investments and second homes.