The latest National Association of Realtors survey has established what every real estate agent in America already knows: Chinese buyers are on a home buying spree here. In fact, a dollar value jump of almost 72% in the Chinese investment - from $13 billion to almost $22 billion in just one year - would be called phenomenon. The rapid pace at which Chinese investment is surging has put this segment of foreign buyers much ahead of Canadians who enjoyed the #1 spot for years. Experts say the Chinese tide of investment doesn’t look like it will stop any time soon and it’s not likely meet the same fate as the Japanese investment did in 1980s.
But why are Chinese buying the US properties? Is the answer to this question important for real estate professionals? It indeed is, because if you know “why”, then it is easier for you to know “how”. If as an agent, you know the reasons as to why the USA has become a favourite destination for these buyers, you would be in a better position to understand how to woo them and chalk out an effective market strategy accordingly.
It’s a well known fact that the majority of the China’s wealthy population is feeling insecure in their home country because of the restrictions imposed by the government on real estate purchases. They can’t buy more than two homes and the investment properties are owned by the Chinese government as the buyers are only a lease holder. For these Chinese buyers, the USA is a safe haven where they can diversify their assets and build an impressive and financially rewarding investment portfolio in an established real estate market. If a Chinese client is looking to diversify his assets, then real estate agents should be able to guide him in the right direction and help him buy a property that suits his needs.
The inclination of Chinese buyers towards properties situated near good universities and schools speaks volumes about their preferences. Most Chinese buyers want to provide their children with good English education, so they buy a residence near an established university or school.
For most Chinese buyers, buying a property in the USA is a lifestyle decision also. They prefer a neighborhood that offers all the amenities – easy access to supermarkets, tree-lined streets and opulent houses. Several surveys also suggest that newly constructed houses are their first preference. If they are in the market, it helps to know what kinds of properties they are looking for.
Understanding these reasons is very important for the real estate professionals as they can gain an insight into the objectives of Chinese buyers while targeting them.