Asian property buyers are interested in Washington DC real estate
In 2006 the overall U.S. real estate market declined to an all time low. Since then, Asian investors have constantly increased their purchase of U.S. property. These Asian buyers consider the U.S. real estate market as relatively cheap and the U.S. government and regulations as stable and safe, according to John Lin, president of Capstar Realty in Gaithersburg, MD. This interest in U.S. properties is turning the Washington DC real estate market into a hot market as properties in good school districts and booming business areas are sold soon after they are put on the market. While Asian investors have always been interested in U.S. real estate, the recent increase in wealth among Asian countries has made it even more common for Asian investors to buy U.S. real estate.
However, these Asian buyers are not buying homes for them to live in themselves. The majority of Asian buyers are purchasing homes for vacation purpose only or for their children. The quality of the U.S. education system is attracting many Asian parents and many of them buy homes for the future when their children may study in the U.S. As a result, the homes that are located in good school districts are selling fast.
According to the Wall Street Journal, buyers from China and Hong Kong accounted for $9 billion of U.S. home sales in the 12 months ending in March 2012, up 89% from 2010. As a result, Chinese are now the second-largest group of foreign buyers of US property behind Canadians. Asian investors are also buying commercial real estate.
Some are concerned that all this Asian investment will hurt U.S. buyers. But Jim Butler, chairman of Global Hospitality Group, a major law firm, indicates that this new trend of Asian investment is very similar to the Japanese real estate shopping wave in the 80′s. Jim says: “There’s nothing to worry about. It’s a great opportunity for the U.S.”
Source: Asia Fortune News, April 2013