International

Chinese-Americans target million-dollar listings

Demographic pays the most when investing in New York City assets

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Takeaways:

  • Chinese-Americans invested $105.5 billion in U.S. real estate during 2014.
  • Across the nation, Chinese-Americans spend, on average, $1.29 million.
  • The top cities targeted by this buyer group are New York City, Los Angeles, San Francisco, Seattle and Detroit. Other top-targeted markets include Orlando, Houston, Boston, Atlanta and San Diego.

Chinese investors eyeing U.S. real estate purchases have been a focal point of late in the multifamily and single-family spaces; however, the Chinese-American buyer has been a somewhat under-recognized party.

According to research from Juwai.com, Chinese-Americans invested $105.5 billion in U.S. real estate during 2014, compared with the $22 billion invested by mainland Chinese.

“Despite their huge impact, these are the forgotten buyers, overlooked in the excitement about the rapid growth in purchasing by offshore buyers,” said Andrew Taylor, co-CEO of Juwai.com, adding Chinese-Americans spend more on U.S. residential real estate than all foreign buyer groups combined.

Across the nation, Chinese-Americans spend, on average, $1.29 million. They also make, on average, 31 percent more than the U.S. median household income.

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The top cities targeted by this buyer group are New York City, Los Angeles, San Francisco, Seattle and Detroit. Other top-targeted markets include Orlando, Houston, Boston, Atlanta and San Diego.

Of the top 15 cities for investing, seven are in the West — eight if you count Honolulu.

Chinese-Americans pay the most when investing in New York City assets. The average purchase price is a hefty $4.9 million. The all-buyer median home value in the Big Apple is roughly $553,900.

In Los Angeles, the average price for Chinese-Americans is roughly $2.5 million — more than four times the city’s median home value.

In San Francisco, the buyer group pays on average $2.4 million, which is 70 percent higher than the city’s median home value.

When seeking residential property outside the U.S., these buyers spend an average of nearly $1.5 million.

The top 10 countries for investment are:

  • Australia
  • Thailand
  • New Zealand
  • Japan
  • Singapore
  • United Kingdom
  • France
  • Germany
  • Spain
  • Canada

Email Erik Pisor.