The downturn in the Chinese stock market has ended up being a boon for foreign real estate as investors from China have set their sights on US-based property as an alternative to stocks. And it isn’t just the Chinese turning away from the stock market and towards property; a worldwide trend has seen more investors look to property in the west because of its perceived safety, Luxury Daily reported.
“International investors have long looked at the New York City real estate market as a solid investment,” said Gabby Warshawer, director of research and communications at CityRealty, New York told the website. “Its consistent growth over the years since the recession has made it an attractive opportunity for buyers from all over the world, including those from countries experiencing market volatility. There have been some notable purchases by Chinese buyers in the last year, including a USD47.4 million purchase by HNA Group’s Guoqing Chen at One57.”
China, along with Canada and the United Kingdom, make up the top foreign investors in US real estate. Investors from these three countries make up 16 percent of purchases of single-family homes and condominiums from abroad. The average purchase price of a property being bought by Chinese consumers is nearly two-and-a-half times the national average, totaling more than USD830,000.
Because of the volatility in the stock market short-term, the long-term and stable nature of property has made it more appealing to investors. Ultra High Net Worth individuals in particular are starting to become more interested in Western-based property, Luxury Daily reported.
Places like New York City, long a haven for foreign investments, as well as Los Angeles and San Francisco continue to see prices rise while markets including the Shanghai Stock Exchange continue to be unreliable. As investors worry about losing money in the stock market, the property market in places like the US and UK have shown long-term returns that make it a safer option.
