Why Wealthy Chinese Investors Are Piling On U.S. Properties this Year
A new Forbes.com report revealed why wealthy Chinese investors recently bought a lot of U.S. properties, citing ownership restrictions and immigration as two of the top reasons.
“The property market in China, coupled with a stronger currency, is also enticing Chinese millionaires to buy homes here. Beijing no longer permits individuals to own more than two properties, even as an investment. So a growing number are going abroad as cash buyers,” the report said.
Douglas Elliman CEO Dottie Herman added in the report that moneyed Chinese real estate investors are flocking to the U.S. due to the “problematic real estate market in China.”
“They’re parking money in the property market as investments and also using it as a short-term home for their college-aged children,” Herman was quoted saying in the report.
Chinese buyers topped the list of international home buyers in the U.S. this year, according to the National Association of Realtor’s report 2014 Profile of International Home Buying Activity. According to the report China led the list in terms of dollar volume, with $22 billion worth of investments in the U.S.
China was also noted as the “fastest growing source of transactions,” sharing 16 percent of the total foreign real estate purchases, up by 4 percent from 2013.
In New York, Chinese buyers scrambled to buy high-end properties, surpassing Russia’s super rich in terms of ownership.
Martin Purcell, a Rutenberg Realty broker, told Forbes.com that Chinese buyers consist a large percentage of foreign clients buying properties worth $20 million and higher.
The influx of Chinese real estate buyers, as well as property investors from all over the world, is a sign of the sector’s healthy recovery. Real estate agents in the United States can take advantage of the industry’s continuous growth by using video marketing technologies and virtual tour platforms offered by RealBiz Media Group, Inc. (OTCQB: RBIZ) to market their listings.
RealBiz Media’s consumer site Nestbuilder.com is a place where agents can create virtual tours, video listings, and professional agent profiles that would allow them to build their brand and generate new businesses.
RealBiz Media has also developed a Television video-on-demand network, a MicroVideo App network, and a Virtual Tour network through its HomeTourNetwork division. It plans to expand its digital video network into more areas to reach over 70 million households in the United States.
According to the company’s web site, its client base consists of over 60,000 real estate agents and brokers.
RealBiz Media has recently entered key partnerships with a number of real estate and digital media companies including forms software developer zipLogix, and Atlanta-based Coldwell Banking Residential Coverage. It currently provides its marketing platforms to nationally-recognized real estate firms by the likes of Keller Williams, Era Real Estate, Century 21, and Prudential Select Properties.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.