It is undeniable that China is a country with a lot of influence. Its huge population, size and economy affect the US every day. Chinese property buyers have been loving US real estate as of late, oftentimes paying cash for their transactions. According to a cofounder of juwai.com, a Chinese website that helps Chinese property buyers find overseas real estate, the Chinese continue to seek out places in the United States to buy.
You may be skeptical of the Chinese economic influence after their huge stock market crash this past summer, Simon Henry, who helped cofound juwai.com, says there are still plenty of Chinese property buyers looking in the US and Canada.
“China’s government is now aiming for 6.5 percent annual growth in gross domestic product, which would be the envy of just about any other country,” Henry said. “We are not seeing any impact (from economic issues) at all, and we expect an escalation of buyers. We look at outbound travel and other categories. The buying power of the Chinese consumer is still very strong.”
In 2014, buyers from Hong Kong and Taiwan spent a whopping $52 billion on overseas real estate. That number is expected to jump to $220 billion by 2020.
“Most investors in China are already property-rich. They are seeking diversification,” Henry said.
The Chinese are the dominant foreign property buyers in the US, trailed by Canadians, according to a survey by the National Association of Realtors. Chinese property buyers’ most popular states are California, Florida, New York, Texas and Washington State, according to Henry.
He said Chinese property buyers usually fall into four buying types: investment, immigration, education and lifestyle. “Investment buyers like new apartment buildings because there are mostly apartments in China,” Henry said. “Immigration investors like to live in established Chinese communities, while education buyers seek apartments close to U.S. colleges and universities for their children to attend.”
It’s great for the US economy and real estate market that we’re so popular with Chinese buyers. Thinking about following the trend and investing in Florida real estate too? Check out the properties RE/MAX Paradise has available today!