Chinese investment in us increases seven-fold
Photo: Fifth World Art
Chinese investment in the USA has multiplied seven times in the past five years, according to Deloitte.
Bob O'Brien, a partner at the firm, told REIT.com that there was a "real acceleration" in investment from China during 2013, a trend that has continued throughout 2014 and is still going today.
Indeed, China's slowing economy has seen a large number of investors turn their eyes Stateside, with the country spending the most on US real estate in the 12 months to March 2014: according to the National Association of Realtors, they splashed $22 billion on property, with an average sale cost of $590,826, more than double the national average for all buyers.
The US economy unexpectedly slumped at the start of 2015, new figures revealed this week, as GDP rose just 0.2 per cent, down from 2.2 per cent in the previous quarter. Despite the shock under-performance, though, foreign interest is only expected to continue, as the dollar weakens against other currencies.
On TheMoveChannel.com, the USA rebounded in March 2015 from its drop in the previous month, with its share of enquiries jumping from 4.66 per cent to 7.2 per cent. In two out of the past three months, the USA has been the most popular country on the portal.
OverseasGuidesCompay.com's Quarterly Index also saw interest climb in America. Overall downloads for the country-specific guides soared 31 per cent year-on-year in Q1 2015, led by Spain (34 per cent of enquires) and France (21 per cent). The USA was the most popular non-European country. While it only accounted 8 per cent of activity, the number of enquiries rose 39 per cent year-on-year.
A survey from Chinese portal Juwai.com highlights California as the most popular state among buyers, followed by New York, Michigan and Florida. Within Florida, Miami and Jacksonville saw the biggest rise in interest from Chinese real estate buyers in the past year.
Now, agents are specifically reaching out to Chinese investors to encourage the trend. In California, Pacific Sotheby’s International Realty have teamed up with Caimeiju.com put its listings in front of Chinese buyers.
"There is tremendous interest in immigration and investment to our region," comments Brian Arrington, Chief Executive Officer of Pacific Sotheby’s International Realty. "Reaching [these] is a priority in today’s real estate market."