From New York to Honolulu, Chinese homebuyers are swooping in to help salvage the U.S. housing market.
Indeed, California, Florida, New York, and even Hawaii have seen a marked up-tick in home sales to Chinese buyers who are exporting their country’s real estate boom to the United States, according to Bloomberg News.
Increased regulation at home and education and investment opportunities are chief among the reasons real estate in the United States – as well as the United Kingdom, Australia, and Canada – has piqued Chinese interest.
According to a survey by the National Association of Realtors, Chinese buyers accounted for 9% of foreign home purchases in the 12 months ended in March of both 2010 and 2011. That’s up from 5% in 2009.
“The purchase restrictions in China drove them overseas, while they look for investments to counter the inflation,” Mo Tianquan, founder and chairman of Beijing-based SouFun Holdings Ltd. – a company that runs China’s biggest real estate Website and organizes buying excursions abroad – told Bloomberg. “Some of them will buy homes considering better education opportunities for their kids, while others look for immigration options.”
Take Cupertino, Calif., for example. Sales of existing single-family homes in Cupertino rose 21% in the first quarter from a year earlier, largely due to an influx of Chinese shoppers who are making huge cash purchases.
“We’re seeing a huge number of all-cash transactions, and most of those are from mainland China,” Nina Yamaguchi, managing broker at Coldwell Banker’s residential office in Cupertino, told Bloomberg. “The thing that draws the Asians here is the schools are so highly touted. Cupertino is certainly not beautiful. It doesn’t have wonderful architecture.”