InternationalMarkets & Economy

Why don’t Chinese spend more on US homes?

Although Chinese investors spend a lot in the US, it's not as much as it could be

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My co-CEO Simon Henry was on CNBC Asia in April talking about the countries where Chinese buy the most expensive homes. Looking at his list, I noticed that the U.S. was not on it. Why not? It's because the U.S. is a destination for buyers at every price range. The countries with the most expensive average price for Chinese buyers tend to attract only premium customers. Chinese buyers certainly spend a lot of money on American real estate. Bob Knakal in New York City estimates that the next several years will see more than $50 billion of Chinese cash injected into Big Apple real estate alone. Other estimates put total Chinese outbound real estate investment in 2015 at about $20 billion. The U.S. is the No. 1 market for these investments, well ahead of second-place Australia and runner-ups such as the UK, Canada and Germany. Besides real estate, Chinese are America's top source of tourists, foreign students and visiting retail spenders. Despite all this, the U.S. ...