JinList™ Forecasts Chinese Purchases of U.S. Real Estate to Reach $38 Billion

With the recent big swings in the Chinese stock market, some are questioning if this will have an impact on the current record setting purchases of U.S. real estate by affluent Chinese buyers. Karen Yan, Executive Vice President of JinList.com, commented “We do not expect a slowdown in purchases of U.S. real estate by Chinese buyers. They typically have limited exposure to the stock market, which averaged only 15% of household wealth. In addition, some Chinese cashed out during the last bull run in the market.” Rather, Yan added that with the new visa rules and loosening of currency regulations, purchases of U.S. real estate should accelerate going forward.

Prices of U.S. properties are seen as attractive compared to property prices in China. Yan further explained that purchases of U.S. properties are a part of portfolio diversification, asset preservation and fulfilling a need for obtaining quality education for their children. Yan said that a recent JinList™ study found there is a shortage of quality education facilities in 2nd and 3rd tier cities across China, and that U.S. universities are the preferred choice for parents in these cities.

A recent report by the National Association of Realtors estimates that 39% of home sales to Chinese during the 12 months ending March 2015 were for primary residences, and another 7% were bought for children while they attend university in the U.S. 23% were bought as residential rental properties. Of total sales to Chinese buyers, 35% were in California, reflecting Chinese cultural affinity to the West Coast.

Taking these factors into account, Yan said that the Economics Department of JinList.com is forecasting $38 billion of purchases of U.S. real estate by Chinese buyers for the 12 months ending March 2016. Yan cited an estimate that almost 50% of Chinese buyers are already living in the U.S. She pointed to a long waiting list for Chinese who are applying for immigration visas to the U.S.

Although they live in the U.S., these Chinese buyers still prefer to use sites in Chinese and sites they have knowledge of. JinList.com and its affiliate site Jinti.com are such sites familiar to Chinese communities around the world.

References:
National Association of Realtors, June 17, 2015
Barrons, Chinese Buyers at Home With the American Dream July 2，2015

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. Read More

New Wealth Builders

Recent studies1 have shown that 69 million mass wealthy Chinese have the net worth to buy U.S. properties. That figure is expected to rise to 220 million by 2022. Exactly who are these buyers?

Karen Yan, Executive Vice President of JinList.com, explained they are called New Wealth Builders (or NWB’s for short). NWBs typically do not consider themselves wealthy, and their wealth is earned, not inherited. They are the world’s fastest 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 11.8 million registered users in 363 cities throughout China behind its Great Firewall. It is also connected with local Chinese communities in over 200 cities in North America. JinList™ helps real estate professionals and developers 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.

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