Chinese The Top Buyer of U.S. Residential Real Estate
China is now officially the top international buyer of U.S. residential real estate in units purchased, dollar volume and average price paid, according to a report from the National Association of Realtors (NAR), which tracks property purchases across the country.
For the year ended March 31, 2015, Chinese (from People’s Republic, Taiwan and Hong Kong) purchased $28.6 billion of real estate in the U.S., a 30% increase over the previous year, according to NAR.
The average purchase price for international buyers was $499,600 per property, but the Chinese paid $831,800 on average, more than three times the national average price of $255,600.
The dollar volume of Chinese purchases is in line with our expectations, said Karen Yan, Executive Vice President of JinList.com, a leading professional online site that connects affluent Chinese buyers with real estate brokers.
QDII2 to Further Increase Real Estate Investments
Mr. Zhou Xiao Chuan, the governor of People’s Bank of China, indicated in a speech on March 22, 2015 that Qualified Domestic Individual Investor Program (QDII2) would further relax restrictions on Chinese outbound investments.
The real difference between the earlier QDII and QDII2, Yan commented, is that individual investors can use their investment quota to choose to purchase real estate vs financial products. The QDII only allowed investors to purchase financial products. The significance of the QDII2 is Chinese government’s explicit approval for individuals’ overseas investments. With already relaxed U.S. visa laws, more Chinese buyers are expected to purchase U.S. real estate going forward, said Yan.
QDII2, expected to be implemented later this year, will allow individuals and companies from six cities, Shanghai, Shenzhen, Tianjin, Wuhan, Chongqing, and Wenzhou, to invest directly in overseas real estate in addition to assets like stocks, bonds. The $50,000-cap on exchanging yuan for foreign currency since 2007 won't be valid on QDII2 transactions.
Individual investors with financial assets of at least RMB 1 million, not including their primary residence, will qualify and invest up to half of their total assets while corporations will be able to invest up to $ 1 billion from the previous $300 million.
JinList™ believed QDII2 will further boost buying of real estate rather than stocks, because QDII had paved way to buy overseas equities. 80% of properties listed on JinList.com are priced between $750,000 and $1.8 million.
Buyers from China tended to buy in states in the U.S. with relatively high property prices. Their favorite spot remained California, where they made 35% of the purchases. Other major destinations included Washington, New York, Massachusetts, Illinois, and Texas.
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 other. Read More
About JinList.com
JinList.com is a professional online platform dedicated to connecting affluent Chinese buyers with real estate professionals.
JinList™ has direct access to over 11.7 million registered users in 363 cities throughout China behind its Great Firewall. It also is connected with local Chinese communities in over 200 cities in North America. JinList™ helps real estate investors and professionals promote their expertise, brand and property listings among high net worth Chinese buyers. JinList™ has a dedicated professional team based in Shanghai, China and Great Neck, NY. JinList™ local translators get your listings seen in China and translate your property descriptions in idiomatic Chinese.
JinList.com utilizes breakthrough technologies and innovative products that captivate people.
The JinList™ audience is engaged, ready to listen and make purchase decisions. Becoming a JinList.com member will extend your visibility and reach into a diverse, rich, and Internet-savvy group of buyers.
If you would like JinList™ to help grow your Chinese business, sign up and start submitting your listings today. For any questions, please feel free to contact us at contactus@Jinlist.com
Sign Up
This is an original publication by JinList.com. Although citation with full acknowledgement may be allowed, no copy or republication is permitted without written consent by JinList.com.
