The New York non-profit organization Asia Society revealed in its latest report that Chinese nationals funnelled US$22.2 billion into U.S. real estate investments in 2015 alone. This prodigious amount has made Chinese the leading foreign buyers of American homes, dethroning Canada from the top spot.
“Chinese buyers paid substantially more, on average, per home than other international buyers because of their concentration in prime neighbourhoods in California and New York,” the report stated, as quoted by Garry Marr in an analysis for the Financial Post
Chinese investment in U.S. real estate has steadily increased by an annual rate of around 20 per cent since 2010, in the wake of the subprime mortgage crisis. All in all, the past six years has seen Chinese buyers acquire an estimated total of US$93 billion worth of American homes.
Commercial properties in the U.S. have seen a similar level of growth; as of last year, Chinese nationals have purchased US$8.5 billion in commercial real estate, coming in just after Canada and Singapore as the leading investors in this segment.
The report noted that despite economic and cultural differences, foreign investors troop to the U.S. market for the same reasons.
“Each group of investors has been attracted by a similar set of qualities — the growth potential of the economy and the fact the U.S. real estate market is the largest and most transparent in the world,” the report said.
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While in-demand housing markets such as Vancouver and Toronto can trace a significant part of their continuous growth to foreign investments, recent findings by a U.S.-based think-tank indicated that Canada is not alone in experiencing an influx of wealthy Chinese snapping up high-end real estate.