However, John Burns of California-based John Burns Real Estate Consulting sees more positively.
He said that, “My conclusion on China is that those who are buying U.S. real estate are doing it with a very long-term view – to diversify their assets, provide a safe haven in case something happens at home.”
According to the National Association of Realtors, the Chinese buyers are considered biggest foreign buyers of U.S. housing having spent roughly $28 billion into U.S. real estate. The Canadians are only considered number two. This means huge opportunities of US based house builders.
Miami-based homebuilder Lennar saw that opportunity and is partnering with a China-based developer on a condominium project in New Jersey. Lennar is also part of a development of single-family homes called the Great Park Neighborhoods in Irvine. It continues to build home for Chinese buyers who have flocked to take advantage of the good schools in the community.
The Chinese are growing interested in Miami real estate as Miami is cheaper compared to London, Hong Kong and New York City.
According to Lennar’s CEO Stuart Miller , “Miami is clearly a place where the Chinese are starting to show up. We haven’t seen any demand prior to now.”
On the other hand, while the opportunity in real estate is attractive to the Chinese buyers, the ability for the Chinese to buy is under pressure with the current situation in its stock market. Though the stock market situation may indeed slow down the investment in US properties, there is no slowing in the interest among Chinese investors and it is possible that the stock market crash may have a positive effect on US real estate.
Source: Realty Today