A $37 million dollar luxury home that is for sale at One Pelican Hill Road North is seen in Newport Beach, California (Reuters/Lori Shepler)
加利福利亚洲纽波特海滩鹈鹕山路，一栋待售的价值3700万美元的豪华别墅。（路透社 Lori Shepler报道）
Foreign buyers of US residential real estate surged 35 percent last year, with Chinese buyers, searching for moderately priced, safe investments in a sea of economic and political uncertainty, outspending the rest of the world.
Chinese buyers spent $22 billion on US homes in the 12-month period ending in March, or about 24 percent of total foreign sales by dollar value, according to a study released Tuesday by the National Association of Realtors (NAR). That’s up from $12.8 billion, or 19 percent, on the previous year.
Total international purchases of American homes jumped to $92.2 billion, according to the NAR, an increase of $68.2 billion on the year before and $82.5 billion for the year ending in March 2012.
Foreign clients made up about 7 percent of transactions in the $1.2 trillion US real estate market.
Thanks to a surging economy that has seen China rival the United States as the world’s economic superpower, newly affluent Chinese customers are the silver lining in the US real estate market, which is slowly rebounding following the 2008 financial crisis.
Chinese buyers, looking for their own piece of the ‘American Dream,’ paid on average $523,148 per property. By comparison, Americans paid an average price of $199,575, according to NAR’s statistics.
Sixteen percent of sales went to Chinese buyers, and is the fastest growing sector, behind Canada at 19 percent, down from 23 percent the year before. Mexico ranked third with 9 percent of sales and India and the UK both accounted for 5 percent.
Chinese buyers are mostly flocking to Southern California, with Los Angeles, San Francisco and Irvine as their top three choices, according to the survey. Chinese purchased 32 percent of homes sold to foreign buyers in the state, according to an April survey by the California Association of Realtors.
The staircase on a ground floor area of a for sale, $37 million dollar luxury home at One Pelican Hill Road North is seen in Newport Beach, California (Reuters/Lori Shepler)
But the Chinese are not alone in their preference for sunny California residences. Buyers from Canada, India, the United Kingdom, Australia, Ireland and Russia are also investing in the popular – and most populated - US state.
Foreign interest in the US home market looks set to continue as investors seek out a good deal.
“We live in an international marketplace, so while all real estate is local, that does not mean that all property buyers are,” NAR President Steve Brown told the Los Angeles Times. “Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability and an incredible opportunity for investment in their future.”
Due in large part to an overheated Chinese housing market, Chinese buyers “want to diversify because the housing market over there is just way too hot,” William Yu, an economist at the University of California Los Angeles, told the Wall Street Journal.
Political instability also figures into the trend, said Mr. Yu. “There’s no trust in the rule of law,” he said. “If they’re making money, smart people are going to try to keep the money here in case something happens in China.”
There is yet another reason for China’s heightened interest in US property: a slowing economy at home.
New-home prices in China dropped in June for a second straight month as a sluggish economy and excess supply has dampened domestic interest, according to the China Real Estate Index System Survey.
Meanwhile, US house prices have increased 26 percent since March 2012, after tumbling 35 percent from their June 2006 peak, the S&P Case-Shiller Index of 20 cities shows.
Eusebio Manuel Vestias pecurto vestias 09.07.2014 11:50
Chinese entrepreneurs are new investments in the global is important investors ideas of economic libertarianism
Tomarc 09.07.2014 11:57
This is the best idea for them. As they hold trillions of US treasure notes. So as long as Fukushima holds and do not dismantles, they made a great investment. But I do not think so, they should buy as much land in the souther hemisphere as possible...
Michael Dunham 09.07.2014 12:37
Just more evidence that far from wanting to undermine the US economy, the Chinese have every reason to want to see it continue to grow.
Davood 09.07.2014 12:51
Stupid Chinese "investors" ; like the Ja ps during WW2 will get to experience internment and confiscation again during WW3.
愚蠢的中国“投资者”，正如Ja ps（ ?看不懂）在二战期间变成集中营，并将在三战期间又被没收充公。
senkevich 09.07.2014 13:42
Only US citizens should own land in the USA, others are free to rent. This is rubbing salt in the open wound of the American middle class
lolo 09.07.2014 13:55
It's a great idea - securing something real in exchange for the useless US dollars. When the US $ crashes, it will be best to have spent most of it
Michael Dunham 09.07.2014 14:14
If the dollar were to crash so would the economy.
If the economy crashes so do house prices.
Obviously Chinese investors do not see either happening which no doubt will greatly anoy and upset some of you.
Shep 09.07.2014 14:29
well they are also buying plenty of realestate in Oz and we will soon see if that drops. This is within the next 1-3years. So the motivation is not safe investments. Maybe money laundering or accepting to lose some of the money than risk it on chinese property. I heard the chinese gvmnt may repossess houses without warning in CN.
Tomas Kristiansen 09.07.2014 14:20
“Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability and an incredible opportunity for investment in their future.”
Andrey 65 09.07.2014 14:37
It is not about good timing and cooled US real estate market. Chinese from China are big players in overheated Canadian market too: they keep on driving prices up and up in already expensive Vancouver, Calgary and Toronto housing markets! So the price is not an issue for them, they might be in the hurry to get rid of all the dollars they have! Look at US stocks too: the stock market is all time high and keeps growing! It's not exactly because US economy is so bloody strong: it's because the bond market is dead already and US currency is such a mess nobody wants to be too exposed to all the risks it represents!
Mohammad 09.07.2014 15:20
Allah bless the United States of America. For all I know, 2008 was just a big boulder in the road of American world power and we have now removed ironically with help from our greatest enemy, the Chinese. Call America what you will, but I highly doubt that the entirety of Europe and Asia will ever let someone not from their own ethnicity ever rule them i.e. Russians will never trust a black man with the fate of their country because of the color of his skin. Yes, we did hang black people from trees but now we have made up for it. America is the most tolerant and friendly nation in the world. God Bless America.
Lamotte Cason 09.07.2014 15:53
Yes, we did hang black people from trees but now we have made up for it. America is the most tolerant and friendly nation in the world. God Bless America.
Get real, more innocent black people died under extremely questionable police shootings by the hands of white cops nearly equalling America's tree lynching periods. There were an extremely high percentage of black children being murdered by white men during Obama's presidency without there being any kind of conviction by what was considered all white juries across the country. White 'Progressives' and gays benefited from Obama's presidency, not blacks.
Lamotte Cason 09.07.2014 15:40
Wouldn't such a move give the U.S. power to come up with an excuse to impose sanction on China at some point seizing all of the U.S. properties and assets bought by China without so much as a refund given back? Correct me if I'm wrong, is this a win-win for the imperial U.S. who has been proven time and time again that it cannot be trusted?
Chris Quadb 09.07.2014 16:56
A lot of precious metal warehouses are coming up empty and this is where there "money" (empty dollars) are coming from.
Chris Quadb 09.07.2014 16:57
Not saying The dollar has worth, the drones are keeping it haha.
tony 09.07.2014 19:16
And why don't the Chinese buy real estate in Russia? Are they allergic to the lack of the principle of rule of law which does not exist in Russia, except maybe on paper? The Chinese are not stupid. They put their money where it will be protected by laws, no matter the nationality of the investor.
Lamotte Cason 09.07.2014 19:31
Or perhaps it can be said that China is trying to fight a covert war from within the United States using the most effective weapon against them. The U.S. paper dollar. Also, China may truly see Russia as a partner as opposed feeling they have score to settle.
George 09.07.2014 21:25
The China government didn't buy these houses. Chinese citizens of China bought them. So, RT's headline is flat wrong.
Rob 10.07.2014 00:35
In America everything it's for sale, they are truly prostitutes!!!
- 美元升贬七年一轮回 美直接"赖账"3.58万亿美元