Chinese buyers are active in the Bay Area

Chinese buyers are reemerging in the Bay Area’s luxury real estate market, driven by ultra-wealthy individuals seeking prestige, convenience, and financial autonomy. A broker recounts a private showing of a $85 million Portola Valley listing to a fashionably dressed Chinese woman, whose interest waned due to the estate’s remote setting. This reflects a broader trend: Chinese buyers now prioritize “fang bian”—a cultural value encompassing convenience, familiarity, and ease—favoring brand-name locations like Palo Alto and Atherton over less central areas or San Francisco, which still suffers from a negative reputation abroad.

Chinese investment in U.S. real estate peaked in 2017 at $31.7 billion, but government restrictions and the pandemic caused a steep decline, bottoming out at $4.8 billion in 2021. In 2025, interest has rebounded, with California capturing a significant share. However, due to tightened capital controls, only the most affluent buyers—those able to creatively move money out of China—are active. Strategies include gold bars in carry-ons, Hong Kong insurance products, and coordinated bank transfers through employees.

These buyers favor single-family homes over condos, seeking full control over their assets and avoiding homeowner associations. The average purchase price for Chinese buyers in 2025 reached $1.2 million, far above the foreign buyer average. 

Despite the high prices, Silicon Valley homes are seen as bargains compared to Hong Kong, Zurich, or Singapore, especially when land is included. Ultimately, the Bay Area offers a blend of status, comfort, and perceived safety, making it a favored destination for Chinese buyers looking to discreetly secure wealth abroad.

Source: The San Francisco Standard