June 27th, 2020
How will the Chinese Buyers Market Change for Palos Verdes Homes in 2017? Contact me through WeChat for more information
It’s common knowledge that Chinese buyers have been an important contribution to demand of these United States’ real estate market.
This chart shows the significance of Chinese Buyers buying levels over the last few years relative to other foreign nationals in these United States’ real estate market
How will the Chinese Buyers Market Change for Palos Verdes in 2017?
What will the factors be that effect any changes? Chinese New Year, the first Golden Week for 2017, is just a week away. Our latest survey says that 42% of Chinese travelling in 2017 plan to engage in property hunting during their trips abroad
1) China’s GDP growth
remained steady at 6.7% in 2016 [Bloomberg: China’s factories, services cap year of gains as prices rise] and the forecast for 2017 is around 6.5% [2. China State Information Center (SIC)] This is obviously a very strong rate of growth especially when compared to the United States, the UK, Canada and Japan. India clocks in at a forecasted 7.6% GDP for 2017. Bottom line, this type of growth means more wealth to power Chinese overseas buying
2) Currency devaluation
motivating Chinese outbound investment. China’s foreign direct investment hit a record $190 billion in 2016 [Mercator Institute for China Studies (MERICS) and the Rhodium Group “Record Flows and Growing Imbalances: Chinese Investment in Europe in 2016”]. This is driven by the fact that many Chinese investors already plan to increase holdings in the next 2 years and the fact that for Chinese Buyers, the most favored asset class to hold is real estate. “Overseas property purchases are the most popular form of overseas investment for China’s high net worth individuals (HNWIs)”, says Hurun Report [Hurun Report: Immigration and Chinese HNWI 2016]. What does this mean in the number of Chinese Buyers interested in purchasing overseas? It’s estimated that over the next 3 years, this number will be approximately 800,000!
3) The Chinese government
is tightening controls on cash flowing out of China. The controls will effect more commercial investments and less so those of mainland Chinese buying homes overseas. Regardless of the fact that the controls established in 2007 that no more than $50,000 per year of currency may be exchanged, records show that Chinese buyers paid an average of $800,000 for residential property and most of these deals were ALL CASH.
If you’re thinking of selling your Palos Verdes home and want to learn more about how to market your home to Chinese Buyers, contact me* using the blue contact button below or the buttons to the right. If you’re on a mobile device, just click the link below…
*One of my Chinese partners is the major player in mainland China as a platform for Chinese buyers to search for overseas real estate. We’ve just announced a new partnership which allows another Chinese internet platform with subscribers numbering approximately 800 million people to browse our Chinese real estate platform to search for homes overseas including of course in these United States. Trust me, you want your home on this platform and you’re missing a huge segment of the market by not retaining Call Realty Best Palos Verdes Homes as your broker. 谢谢
Over 40 5 Star Reviews
Call Realty Best Palos Verdes Homes, 433 Via Corta, Palos Verdes Estates, CA 90274 (424) 226-2147