Chinese investor activity in San Francisco real estate reaching fever pitch Chinese investors have been showing record breaking interest in San Francisco real estate, according to measures of activity of Chinese property investors on Juwai, the No. 1 Chinese international property portal. The potential pool of Chinese investors is large. There are 2.7 million high net worth Chinese (in American dollars, this converts to those earning $1.5 million or more). China also boasts an ” Upper Middle Class” 60 million strong, says Dave Platter to Global PR & Communications Director of Juwai. “These two groups have the money to buy overseas.” The website, which measures searches, search results, page views and inquiries of Chinese investors in relation to property for sale internationally, rates the USA as the most popular country for Chinese investors. Chinese buyers spent US$30 billion on international property in 2012. Of that, US$9.08 billion was invested in the USA. Indeed, The National Association of Realtors ranks Chinese buyers as the second largest group of investors, after Canadians, accounting for 11% of overseas buyers purchasing homes in the US. This percentage shows a decent jump from the last major real estate boom the US enjoyed, 200, when Chinese purchases accounted for 5% of overseas transactions. Among the United States, California is the most popular. More than half the homes sold to foreign buyers in California go to Chinese nationals, estimates CNN Money. In San Francisco proper, Chinese investor property hunting climbed 84%, month-over-month from July to August 2013– it was also 456% higher than it was this January. And the favorite SF neighborhood? Think iconic San Francisco: “Nob Hill is the San Francisco neighborhood of the moment, for Chinese investors. So far in 2013, it has received more searches by name than any other.” Why do Chinese buyers seek property in San Francisco? Juwai surveys website users on their reasons for choosing one location over another. Among the large population of Chinese searching for homes in SF, the top reported reasons for investing in San Francisco real estate are: 1. Lifestyle (51%), 2. To purchase a place for children’s education (23%) 3. Investment (19%) 4. Immigration (7%). What do Chinese investors buy? It would be an oversimplification to say that all Chinese investors seek the same type of property. However, in San Francisco, investors seeking properties for their own use typically seek out places where their children can be near good schools and universities, as well as be close to transport, shopping and amenities. Because San Francisco is a relatively expensive local market, Chinese investors active there tend to be wealthier, snapping up property in the $700,000 to $1.2 million range, in the $1.5 to $3 million range, or in the $5 million and above range.
Posted on: Tue, 29 Oct 2013 17:35:39 +0000
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