Right after Canadian investors, Chinese nationals are among the largest investing populations in U.S. soil, purchasing a diverse set of properties including residential parcels, office buildings, strip malls, and hotels. Out of the approximately 10,000 visas furnished in 2014, Chinese comprised around 85% of the recipients.
Industry players and observers have noted that U.S. residential and commercial real estate
boasts of much better prices and long-term returns compared to Mainland China property.
“People feel like, from the Chinese end, that it is very attractive to own a piece of real estate in the United States, because not only you have a property, but you also own the right forever,” CapStar Commercial Realty president and CEO John Lin told CRI
“That is a major difference: in China, you purchase the property, you don't own the land,” Lin said.
Industry professionals said that among the primary motivations of foreign investors is community.
“They can find the same language, the same people, they have the same culture, and work together,” real estate broker Fei Wan told CRI
“Any time, when there is an injection of money to the local market, that will create jobs, and what's gonna happen is a ripple effect, because you are going to create tax dollars, and other types of professions to service the new employment base,” Wan added.
An estimated $28 billion has been spent by middle class Chinese families and individuals on homes in the United States in 2014 alone. This sum has made Chinese investors some of the most important sources of American real estate sales volume – a fact that has not gone unnoticed by brokers.