Three Things to Know About Chinese Buyers

By Jackie E. Allder, Vice President, Public Relations & Communications, The Long & Foster Companies.

Seattle, Washington
Seattle rated as the No. 1 city searched by Chinese buyers in 2017, according to insights from Juwai.
Sep 201807

Three Things to Know About Chinese Buyers

By Jackie E. Allder, Vice President, Public Relations & Communications, The Long & Foster Companies.

When it comes to international investors in the U.S. real estate market, China continues to lead the pack, according to the National Association of Realtors 2018 Profile of International Transactions in U.S. Residential Real Estate. For the sixth year in a row, Chinese buyers purchased the largest volume share of U.S. real estate amongst global purchasers.

To gain greater insights what’s driving these buyers, we asked our partners at Juwai.com, China’s largest real estate website, for some insights. Here are three takeaways from their latest research.

Personal Use Drives Chinese Buyers in the U.S. Market

What motivates Chinese buyers who are investing in property in the United States? Personal use tops the list at 64.4 percent, according to Juwai’s 2017 IQ Data. Investment falls second on the list of motivators, at 45.5 percent, followed by education at 15.9 percent. Important to note is that Chinese buyers, like all home buyers, may be motivated by multiple factors when purchasing real estate.

Average Budget Hovers Below $300K

The median home price in the United States was just over $300,000 in June 2018, and Chinese buyers have budgeted accordingly. According to Juwai, the average budget for a Chinese consumer investing in international real estate sits at $289,000. Based on global inquiries on Juwai.com, over 70 percent of Chinese consumers are shopping for properties valued below $500,000. Almost 15 percent are browsing the $500,000 to $1 million price range, with the remaining percentage exploring homes above $1 million.

West Coast Ranks as Most Popular

Seattle rated as the No. 1 city searched by Chinese buyers in 2017, with Los Angeles coming in second. New York City followed as the third-most inquired city, with Houston and Orlando rounding out the top five. The top five cities made up the top five states, although with a different order of importance. For states, California ranked as the top inquired state by Chinese purchasers last year, followed by New York, Florida, Washington and Texas.

To learn more about Chinese buyers in the United States and around the world, visit Juwai IQ.

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