Chinese homebuyers are flocking to these
Chinese buyers are now the biggest international players in the
housing market and some states are seeing billions of dollars in real estate deals as a result. U.S.
More than half of the on U.S. homes during the 12 months ended in March was spent in California, Washington and New York, according to the National Association of Realtors.
The hottest markets:
, Los Angeles , San Francisco and San Diego, New York , according to Juwai.com, a Hong
Kong-based website that connects Chinese buyers with Seattle properties. U.S.
"Plus, it has a thriving tech industry that employs many Chinese," he said.
Leslie Appleton-Young, the chief economist for the California Association of Realtors, said there had always been a small cadre of real estate agents in California who work with international buyers, but the number has exploded over the past two or three years.
"The global real estate market is a reality," she said.
The influx of Chinese buyers has helped push home prices higher in places like
. That has forced less wealthy Chinese
buyers to turn to nearby cities like San Francisco and other less expensive areas,
buoying those markets as well, said Appleton-Young. Oakland
, tech jobs and universities are a big
draw. Many Chinese parents are buying condos for their kids who are attending
school there. Seattle
"They come to
for work, for education or simply to
invest," said Washington State . Taylor
, Chinese buyers are spending millions
on properties in New York that they will never live in, according to Weimin Tan, a
real estate agent who caters to Chinese real estate investors. Manhattan
His clients spend between $1 million and $4 millionand many treat the purchases solely as investments. "They use it as a hedge to diversify their holdings," said Tan.
Chinese buyers are also searching for homes for sale in
's resort areas, according to Juwai's Florida . Taylor
, Chinese buyers go for newly built,
high-end waterfront buildings, where they can easily find renters at attractive
And growing in popularity among Chinese house hunters is
, particularly the cities of Austin and
Houston, said Texas . The state of Taylor engages in nearly $10 billion worth of
trade a year with Texas . China
Surprisingly, the city of
, outside Plano , has one of the highest percentage of
Chinese residents in the nation, at 5.2%. Dallas
But perhaps the most unexpected destination for Chinese real estate money to land in is
Chinese buyers are keeping an eye on the revival of the auto industry and buying homes in manufacturing cities like
, Detroit and Saginaw , said Flint . They're also purchasing homes in Taylor and other college towns for their
kids. Ann Arbor
Most of the buying, however, is pure bottom-fishing with many buyers never even setting foot on their property or in the state, for that matter. In
, news stories of homes being auctioned
off at a starting bid of $1 has "set off an avalanche of interest and some
purchases," said Detroit . Taylor
Chinese investors buy the properties cheap, have them refurbished and put back on the market as rentals.
According to NAR, nearly 40% of the Chinese buyers will live in their
homes full-time. But nearly half the
purchases made by Chinese nationals are strictly for investment with buyers not
intending to live in them at all. U.S.
Wei Min Tan is a buy-side Manhattan, New York condominium specialist focusing on investors and foreign buyers. He can be reached at firstname.lastname@example.org.