Multi-Family Properties As Attractive Investments
International investors, especially from China, continue to pour money into U.S. real estate—favoring apartment development. In the last 12 months, investors from China have been especially enthusiastic buyers of development sites for apartment and condominium properties.
Chinese investors like multi-family, apartment buildings, office buildings, medical facilities, among others, said Karen Yan, executive vice president for JinList.com, a leading digital platform that connects affluent Chinese buyers with real estate professionals. These investments provide for capital protection, asset appreciation and most importantly stability of revenue streams due to long term leases.
Chinese investors are familiar with a business model that they used in China of acquiring land to develop condominium and rental apartments to sell or lease, further commented Yan.
Investors based in China now account for 5 percent of the total purchases of all development sites in the U.S., according to Real Capital Analytics (RCA), a data firm based in New York City. Yan commented that much money is invested through sponsors or fund managers based in the U.S., which may not show up as direct foreign purchases.
Last September, the Wanda Group, China's largest commercial property developer, bought 7.95 acres at 9900 Wilshire Boulevard in Los Angeles, Calif., with plans to create a $1.2 billion condominium development.
An overwhelming majority of foreign investors says they plan to keep pouring money into commercial and multifamily real estate investments in the U.S., according to the 2015 survey of the members of the Association of Foreign Investors in Real Estate (AFIRE).
According to the survey by AFIRE, more than 90% of foreign investors say they plan to maintain or increase the size of their U.S. portfolio in 2015. They voted the U.S. the most stable and secure country for investment, outstripping second-place Germany by 55 percentage points. The U.S. also offers the best opportunity for capital appreciation, out-performing second-place Spain by 34 percentage points and the third-place United Kingdom by 40 percentage points.
To help market these U.S. opportunities to Chinese investors, JinList.com features Commercial and Investment Real Estate sections in addition to the Residential section.
Chinese Visiting the U.S. to Increase by Over 200%
The new U.S. visa laws unveiled in November 2014 grant qualified Chinese business and tourist travellers multiple-entry visas for up to 10 years. Chinese students, exchange visitors and their dependents are now eligible for multiple-entry visas valid for up to five years.
In 2013, 1.8 million Chinese tourists visited the U.S. Under the new visa law, that figure is expected to grow to 7.5 million by 2021, an increase of 317%. Read More
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