For luxury real estate professionals in certain markets, international buyers are a growing source of opportunity. According to the Knight Frank 2015 Wealth Report, there are 172,850 individuals globally who have a net worth of $30 million or more. An estimated 32% of an UHNW individual’s assets are invested in real estate, and that 81% of UHNWIs are most interested in the residential market. Amidst the growing pool of wealthy international investors, Chinese clients stand above the rest.
The NAR’s 2015 Profile of Home Buying Activity of International Clients showed that, for the first time ever, international buyers from China exceeded all other foreign buyers in both units and dollar volume, spending $28.6 billion on United States residential real estate last year. While Chinese buyers are undoubtedly attempting to shelter their wealth from a chaotic domestic market, reports show that they are dually motivated by an interest in the United States’ prestigious universities.
Chinese students account for approximately one third of all international students in America, and an estimated 10% of Chinese UHNWIs send their children to college in the United States. It is becoming increasingly popular for wealthy Chinese parents to invest in residential property near their child’s university, constituting a simultaneous investment in real estate and education. Chinese buyers show a strong preference for American cities on the west coast, such as San Francisco, Los Angeles, and Seattle, which boast a wealth of educational and business opportunities, as well as relative proximity to China.
Learning To Work Effectively With Chinese Clients
Chinese buyers have a unique set of customs and perspectives concerning social and business transactions. Luckily, there are many resources available to luxury real estate professionals who want the tools to attract Chinese buyers and exceed their expectations.
Recent Comments