Buying American real estate is becoming a fashion for some Chinese to show off wealth and status. According to a report by the National Association of Realtors and the Huron Report (a leading luxury publishing and events group) the United States is the number one destination to relocate to for more than 60% of China’s wealthiest residents. Chinese investors now make up the second-largest group of foreign buyers of homes in the US. With a “huge” influx of wealthy mainland Chinese looking towards purchasing high-end properties across the U.S. China is now one of the fastest growing sources of international buyers in the U.S. real estate market. A report from the Bank of China said, nearly half of China’s richest are considering emigration, with the United States, Canada and Singapore being the top three destinations.
There are more Chinese homeowners in the U.S. today than ever before. Better economic conditions, business ties and easier travel sanctions contribute to this trend. In recent years, attracted by the pleasant natural environment, well developed economy, and great education resources, Chinese buyers flock into the property market in California, which is one of the top 5 property markets for international buyers. The most common reasons for them to emigrate are their children’s education, a desire for better medical treatment, and the fear of pollution in China. Compared with the houses in China, the US properties are much cheaper in terms of price per unit area of land. They are worthwhile no matter whether they are bought for investment or self-use.
Many of them are calling Los Angeles home. LA area homes are in high demand for wealthy Chinese buyers, and in many areas this is pushing prices beyond boom-era peaks. Areas like Arcadia’s 91007 ZIP Code experienced an increase in median home sale price past $1.32 million last quarter, which is 30.5% past 2007 highs according to DataQuick. In the 91006 ZIP Code average home sale prices are also up 23.7%.
In view of that, many local contractors begin to add some Asian taste in their new constructions. Chinese Feng Shui element is taken into these new buildings. As the Bloomberg Newsweek reported, the purchases made by Asian immigrants, especially those from China, is one of the reasons for the booming of the property market in Southern California.