China leads international investment in us

Photo: Fifth World Art

China is leading international investment in the US property market. Five countries made up more than half of all sales to overseas buyers in 2014: China, Canada, Mexico, India and the UK. China, though, spent the most for the first time.

The country's investors purchased an estimated $28.6 billion worth of real estate, ahead of Canada ($11.2 billion) and India ($7.9 billion).

International buyers tend to purchase more expensive properties with the average purchase price being $499,600, compared to the overall US average house price of $255,600. Chinese buyers typically purchased the most expensive properties, at an average price of $831,800.

Buyers focused on four states: Florida, California, Texas and Arizona. Florida remains the top destination for international buyers, claiming a 21 per cent share of all foreign purchases; California came in second with a 16 per cent share, followed by Texas (8 per cent) and Arizona (5 per cent).

Chinese buyers tended to gravitate towards the West Coast, which provides ample education, business and trade opportunities, while Canadians seeking winter vacation opportunities focused on the Southwest and Florida.

The majority of international purchases (55 per cent) were made with all-cash, compared to about 25 per cent of all purchases made by domestic buyers.