As the Chinese economy continues to boom, Chinese are looking abroad to spend money on real estate.
Where are they buying?
and Philadelphia come in at No. 3 and No. 4. Detroit
The top 10 list is rounded out by
, Houston , Chicago , Las Vegas , Atlanta and San Diego . Memphis
Chinese buyers purchased $8.2 billion worth of
property in 2012, according to Juwai.
It ranked cities by how many searches they attracted from Chinese house
This is a welcome clientele for
sellers. The median home price among
Chinese buyers was $425,000 in 2012, compared with the overall median U.S. home price of $199,500. U.S.
And the transactions are often quick and clean: 70% of the Chinese buyers pay cash, according to the National Association of Realtors.
Buyers have different reasons for picking a city.
Others seek homes near colleges their children can attend.
And the wealthiest of these Chinese buyers are looking for economically strong cities, using
real estate to diversify their
"They look at these as a safe haven for their money," said Pam Liebman, CEO of broker the Corcoran Group.
Wei Min Tan, a broker with Rutenberg Realty in
, said that most Chinese buy to rent
out, or for sporadic use themselves. Manhattan
"They often have kids in school somewhere nearby and they fly into
, spend a few days and then go on to
visit their kids," he said. New York
He added that most of these
sales are in the $1 million to $3
million category. "Rarely do they buy the trophy properties -- $15 million
and up -- that make the news," said Tan. New York City
and Detroit are more appealing to Chinese looking
for predictable, steady cash flow, according to Juwai. They're snapping up
foreclosures and other heavily discounted properties, fixing them up and
renting them to local residents. They hire local managers to take on the
day-to-day maintenance and collect the rents. Memphis
In the case of
, the buyers often don't even do
repairs right away, according to Rachel Saltmarshall, president of the Detroit
Association of Realtors. Detroit
They're buying at tax sales and foreclosure auctions and holding the properties, sometimes keeping them vacant, hoping that the city's comeback is imminent.
is going through a renaissance,
according to Kelly Sweeney a local real estate broker for Coldwell Banker Weir
Manuel. "The Chinese are making bulk purchases of inexpensive properties,
$25,000 or less, in the rings around downtown," he said. "They're
banking on the downtown resurgence spiraling out into those rings." Detroit