Chinese home buyers purchased the most properties in the United States among foreign investors for the second year in a row, according to the National Association of Realtors’ 2016 Profile of International Activity in U.S. Residential Real Estate. Here’s what you need to know about this growing segment of homebuyers and how they impact the U.S. housing market.
How much property are Chinese buyers purchasing?
NAR’s 2016 Profile of International Activity in U.S. Residential Real Estate found that Chinese buyers purchased $27.3 billion worth of real estate from April 2015 through March 2016, amounting to 29,195 properties. The average purchase price of those properties was $936,615, while the average purchase price of all international buyers was $477,462.
Why do Chinese buyers choose specific states or communities?
Many of these buyers are purchasing properties in carefully chosen states or cities because of educational opportunities and what they see as ideal locations. These include Maryland, New Jersey and North Carolina. Among the factors they consider when choosing a location are proximity to their home country, family, friends or associates who are already living there, schools, jobs and climate.
Forty percent of Chinese buyers are purchasing the property as a primary residence and 13 percent of them are using the property for a student to attend U.S. schools and universities. According to Juwai.com, the largest Chinese international property portal, 70 percent of buyer inquiries for U.S. properties in 2015 were tied to education.
What types of homes are these buyers looking for?
According to NAR research, 74 percent of Chinese buyers purchased a detached, single-family home. Among the remaining Chinese buyers, 14 percent chose a condominium, 8 percent chose a townhome and 4 percent chose something else. Chinese and Chinese-American buyers are also looking for homes located in neighborhoods that are safe as well as those that have incorporated elements of feng shui philosophy, reports Inman News.
How can Long & Foster connect U.S. home sellers to Chinese buyers?
Long & Foster Real Estate belongs to a number of global networks including Leading Real Estate Companies of the World, Luxury Portfolio International and Christie’s International Real Estate, which enables us to work with clients around the world. Additionally, Long & Foster is a partner of Juwai.com, allowing Chinese buyers to learn more about what properties are available on the East Coast. If you’re considering selling and would like to market your home to international buyers, consider speaking with a knowledgeable Long & Foster sales associate.
• NAR’s 2016 Profile of International Activity in U.S. Residential Real Estate
• Juwai.com, “6 reasons why education underpins Chinese overseas property investment,” July 5, 2016
• Inman News, “Chinese homebuyers say feng shui is imperative,” Nov. 23, 2015