Chinese nationals bought more than $110 billion worth of both residential and commercial real estate over the past five years. Last year’s surge in purchases moved them past Canadians, to become the largest group of foreign buyers of US homes, according to a study from the Asia Society and Rosen Consulting Group.
Over the past five years, the desire of Chinese nationals to find safe offshore assets helped the US real estate market recover from the 2008 economic crisis.
There are many reasons for the purchases: some are buying second homes, while some are moving to the US on EB-5 investor visas; others are just investments for rental and resale.
However, the study found most of the money is private wealth, not corporate. And since last year, there has been motivation to get money outside China and into dollar assets amid worry about the continued fall in the yuan, which was devalued against the dollar in August.
Yet, even as Beijing clamps down on capital outflows and purchases slow down, the study still expects to see sales double to $218 billion during the second half of this decade.
Full article: Chinese nationals top foreign buyers of US homes (Asia Times)