International investors are very important to the United States real estate market. Each year, foreigners buy homes in the U.S. for either commercial investment but also for residence. The most foreign buyers come from China, Canada, the United Kingdom, India, and Mexico. Last year, the Chinese real estate buyers accounted for 16% of all real estate sales to international buyers. According to a recent study by the Asia Society and Rosen Consulting Group, Chinese investors spent $17 billion on US commercial real estate between 2010 and 2015.
“More than any foreign investor other than Canada, China stands out for the breadth, depth, and speed of its participation in the US real estate market,” according to the report released on Monday, Breaking Ground: Chinese Investment in U.S. Real Estate.
“This wave of investment is coming from diverse sources in China,” said Arthur Margon, one of the authors of the report and a partner at Rosen Consulting Group (RGC), an independent real estate economics consulting firm. “But that’s really a small piece of the potential investor universe.”
Wendy Cai-Lee, executive vice-president at East West Bancorp Inc said recently at a discussion about the report that Chinese real estate buyers are becoming more knowledgable about U.S. real estate.
“Several years ago, I had Chinese buyers asking only about the return from a potential deal. Now they ask about safety and diversification reflecting a greater awareness of the U.S. market,” she said.
According to the report, a whopping half of the 17.1 billion dollars came in 2015. That meant there was an annual growth rate of 70 percent. Chinese buyers also spend more. According to the National Association of Realtors, the average home price for Chinese buyers in 2015 was $831,800 compared to $499,600 for other international buyers.
International buyers are very important to our market. It’s also an indication of a strong market when so many Chinese and other foreign buyers come to the U.S. to buy. They see the perks of investing in real estate, and so should you. We at RE/MAX Paradise have amazing commercial properties in Miami for sale today!