The New York Times, according to FX street, has an article that tackles the topic China's expanding investment in U.S. real estate. It was reported that aside from the condos in Manhattan or McMansions in Silicon Valley, the Chinese are also acquiring new development in Plano, Texas.
Based on the said article, for every 14 buyers in the market of homes valued above $1 million there is stunningly one Chinese buyer. But they are even 50% more prevalent in markets for premium real estate in San Francisco, Orange County or Manhattan.
According to FX street, the Chinese buyers have paid an average of $831,800 for an American home. Total amount of home deals from Chinese buyers is $28.6 billion, and that is tremendously more than twice the amount 2 years ago.
Falling behind the Chinese buyers are the Canadian buyers who spend only $380,300 on the average but comparatively more than the average amount spent by Americans which is $250,000
What is more surprising is that 65% of the purchases by the Chinese have been made with cash, which is something local can't do. With the current buying power of the locals, applying for mortgage is the easiest way to get a home. The Americans are not happy with the fact that the Chinese buyers can complete a deal one weekend, according to FX street.
According to the said article, the dwindling economy in China is the driving force that is urging Chinese Investors to get their money out, also there are those who speculate that the US real estate became attractive only because Chinese property has skyrocketed. Not to mention that they are in fear that the government may start to take it. Other reasons include sending kids into American schools and colleges so they can received world-class eduction. There are those who simply want to avoid the smog in some areas China in
It has been estimated that money had begun flowing out of China since 2009.
