Wealthy Chinese International Luxury Property Buying Spree Accelerates!
August 16, 2013 - China
Affluent Chinese with a few million yuan to burn are spending billions on international luxury property. The top 3 markets are the United States (No. 1), Canada (No. 2), and Australia (No. 3) respectively.
Chinese investors poured $12.3 billion on US real estate over the 12 months ending March 31 according the latest data released by the National Association of Realtors (NAR).
A total of 18% of all US foreign purchases are made by Chinese which represent the fastest growing and largest single foreign property buyer segment.
Most purchases by Chinese were ‘cash only' as they avoid debt and mortgages whenever possible in property searches.
Why are Chinese buying up international luxury property at such a high pace?
Key reasons are as follows:
1. Expatriating wealth, moving money offshore to diversify assets
2. Investment, appreciating Yuan currency and relatively cheap international property values relative to their home markets make for an appealing stimulant
3. Prospects of a better life, as the Chinese grow more affluent they are seeking a cleaner evironment, better schools, and better opportunity for their children. Their new wealth has become a social motivator to invest tier one international luxury property markets as a venue for the betterment of their children being educated abroad and themselves.
"Additional property buying accelerators are simply the fact that rate of the collective Chinese experience of buying abroad begets more buying. The Chinese were only recently allowed to buy international property in 2009. Since then, they have now overcome the ‘learning curve' by the first hand experiences of their family, friends, and social networks having positive experiences buying abroad. The process for mainland Chinese is now a lot less complicated with an established track record of positive results. " says PropGOLuxury's, Managing Director, George Varvitsiotis.
Trends, Chinese investors, Investment property, foreign investors