Tag Archives: china

Why Chinese Homebuyers Are Coming to the U.S.

Source: RISMedia

According to the National Association of REALTORS® (NAR) 2016 Profile of International Home Buying Activity, Chinese homebuyers make up over 27 percent of all international home sales in the U.S Not only are Chinese buyers purchasing more U.S. property than any other group of international buyers, but they are also purchasing at a much higher price point. While the average purchase price for other foreign buyers during 2016 was $477,462, the average purchase price for Chinese buyers was $936,615—plus, approximately 71 percent of those purchases were all-cash. This is an opportunity that U.S. real estate professionals simply can’t afford to miss.

So, why are Chinese buyers searching for homes in the U.S.? One of the biggest reasons is how expensive local assets currently are in the Chinese property market. Tax regulations and various laws make purchasing local property more difficult and Chinese buyers are looking for a safe place to invest their money, with the U.S. offering a wide range of investment choices in real estate. Another major reason to look in the U.S. is education, which is of deep-rooted importance in Chinese culture. While education is extremely competitive in China, the U.S. offers competitive options for top universities and K-12, since many Chinese parents are looking for a more well-rounded curriculum for their children than is offered in China, where they are often focused more on high-stakes testing. To learn more about this immense opportunity, check out this on-demand webinar from ListHub Global, and read the 5 tips below to attract Chinese buyers to your listings.

  • Focus on location. In addition to highlighting the neighborhood where your property is located, associate the property with well-known landmarks and focus on school zones, transportation options, and other attractions.
  • Win over the youth vote. When making a decision about where to purchase property in the U.S., parents are often heavily influenced by their children, especially those who are moving to the U.S. for school. Make sure your property highlights features that cater to the younger generation: amenities, proximity to shopping malls and parks, and any nearby universities.
  • Think Hollywood. Many Chinese buyers have gained their knowledge of the U.S. through Hollywood movies and don’t necessarily have a thorough geographic knowledge of the country. Take advantage of this! Chinese buyers may know about Seattle from watching Meg Ryan and Tom Hanks fall in love on the big screen, but may have no idea that Seattle is located in Washington state. Make sure to put emphasis on the city name and, if possible, relate your property’s location to movies or media that are popular in American culture.
  • Get acquainted with Chinese social media. With strict internet regulations, Chinese do not have access to Facebook, YouTube and other social media channels that we use every day in the U.S. One of the most widely used social channels in China, WeChat, is described as a “super app” that combines tools similar to Facebook, Twitter, Instagram, WhatsApp, Uber and Amazon, all rolled into one application. With 700 million active users, the app has become an integral part of doing business in China—in fact, over 80 percent of Chinese buyers prefer to be contacted via WeChat when requesting property information. Having a presence on this widely-used site can be a game-changer for connecting with Chinese buyers.
  • Most importantly…get your listings in front of Chinese buyers. Reaching Chinese buyers can be challenging. With language barriers and strict internet regulations, real estate professionals often have a hard time getting their listings in front of Chinese consumers searching for their next investment opportunity. ListHub can help! With several Chinese publisher websites available in the network, you can get your listings on the sites where Chinese buyers are actually searching.

Access an on-demand version of ListHub’s recent webinar on Chinese migration to the U.S. and how you can better attract Chinese buyers to your listings here—plus, learn more about how ListHub Global can help you get effortless international exposure for your listings.

For more information, please visit www.listhub.com.

For the latest real estate news and trends, bookmark RISMedia.com.

Chinese Residential Purchasing Power Pushes over $150 Billion into U.S. Real Estate

Source: RISMedia

Over the last 5 years, Chinese nationals have invested over $150 billion into the U.S. housing market, pouring in $28.6 billion in 2015 alone, according a new report released recently by Asia Society and the Rosen Consulting Group.

Currently the biggest foreign buyers of American homes, this immense push from Chinese buyers has been extremely beneficial in aiding the success of the U.S. housing market recovery.

While Chinese nationals have been purchasing both residential and commercial properties, the study shows more purchasing power going toward residential homes than commercial buildings, with $23 billion funneled into U.S. commercial real estate and a stunning $127 billion into housing.

A 2015 study by the National Association of REALTORS® showed that buyers from China made up 16 percent of all international buyers locking in single family homes in the U.S., jumping from 12 percent in 2013, inching above the long-standing top foreign real estate buyer, the Canadians.

“Chinese buyers are buying real estate in the U.S. and they are buying lots of it,” says John Yen Wong, Founding Chairman of the Asian Real Estate Association of America (AREAA), a Strategic Partner with the recently released study. “These property purchases are broadening across the country and communities benefit from the infusion of capital into the neighborhoods.”

So where are Chinese nationals buying real estate, and why? In 2015, 35 percent of these home purchases were made in California, with New York following suit. Top hot spots, according to the study, include Los Angeles, San Francisco, New York, Seattle, Chicago, Miami and Las Vegas. These high-end locations mean buyers are purchasing high-end homes. The study shows that in 2015, Chinese buyers paid an average of $832,000 per home, doubling the average of other foreign purchases landing at $499,600.

Motivations vary. Wong comments, “Three of the key drivers for these buyers are fee-simple ownership—rare if at all, in China; the rule of law—recourse if something goes wrong; and a stable government, despite what we might think during presidential election season.”

Many buyers are relocating on investor visas, some are purchasing rental properties or second homes, while others are motivated by worry over the devaluing of the Chinese yuan, pushing many to translate their assets to the U.S. dollar.

“New real estate owners do not stop spending once the real estate purchase is completed,” says Wong. “Whether buying new appliances, new cars, or eating at restaurants, these new owners infuse money into local economies. The Chinese buyers can lay the foundation for vibrant community growth.”

America Experiences Net Influx of International Movers

Recent data show that the United States experienced a net infow of people
from international locations in 2013.

The data, recently released by Unigroup Relocation, indicate that the
United Kingdom is the top country of origin for people moving into
the U.S.. This has been the case for 7 out of the past 8 years.

Top destinations for U.S. citizens moving abroad are:
Germany, the U.K., France, and Switzerland, according to the study.

Of note: for the first time in 4 years, there were more people moving
from China to the U.S. than those moving from the U.S. to China.

“The U.S. only saw a moving deficit to two of the countries on the top
destination and origin lists, demonstrating the U.S. economy’s international
strength,” according to Michael Stoll, chairman of the UCLA Department of
Public Policy.