The Influx of Chinese Buyers into U.S. Real Estate
Changes to regulations coming through China have foreign investors seeking investments outside of their market as quickly as possible. The U.S. residential property market has absorbed a substantial amount of Chinese investments in the past few years and will continue to be a favorable asset, states a recent article in Mansion Global. "Last month, China lifted restrictions on cross-boarder capital movement, reversing January's guidance for banks and other financial institutions to maintain either a net balance or net inflows of renminbi, or Chinese currency."
As one can imagine, loosened regulations are causing a new surge of foreign buyers headed to the U.S. in a hurry. Our very own Realogics Sotheby's International Realty CEO, Dean Jones, was quoted as saying, "The kind of knee-jerk policies in China could divert more capital to key property markets in the U.S. China is tightening grips of capital outflow often comes without notice. It's perpetuating the fear that rules will be changed. the rule book we are playing, on the other hand, rewards intelligent and savvy Chinese investors." Jones is also a board member of the Washington State China Relations council.
In the last decade, real estate value in China has drastically escalated and buyers who wish to diversify often seek foreign property investments. Properties in the U.S. are still a safe choice for those seeking luxury real estate. Especially since last August when "the Canadian province of British Columbia imposed a 15% tax on foreign investment in the city... The tax applies to anyone who isn't a citizen or permanent resident of Canada and purchases a home in metro Vancouver," states another Mansion Global article from February.
This trend is certainly something that we at Realogics Sotheby's International Realty have been keen to facilitate and explore. Though it looks as though the next wave of consumers may be seeking new developments, like the currently under-construction NEXUS Seattle. Are you a foreign buyer seeking an investment property in the Seattle area? Please contact me to discuss your options!