What is Driving Chinese Investors to Invest Abroad?

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Chinese real estate investors have been seeking quality investments abroad at an incredible rate over the past few years. Countries like the United Kingdom, Canada, United States and Australia have seen a massive influx of real estate investment from China. Real estate sellers have increasingly been attempting to find Chinese investors. But,what exactly is driving this trend?

Foreign real estate remains attractive to many types of Chinese investors including real estate developers, individual investors, and business groups. Those who are selling both residential and commercial properties in the above-mentioned countries will often try to find Chinese investors to increase the competition for their best listings and attract a quality buyer pool.

In 2016, there was a 55% increase in Chinese foreign real estate investment compared to 2015, with a record $33 billion being invested in commercial and residential real estate abroad, according to Forbes. Some of the primary reasons for this rise in foreign investments include:

• Quality educational systems – Chinese investors often seek a home in which their children might live in the future,and thus educational quality is incredibly important for them. Cities with high quality primary, secondary and post-secondary educational systems have become some of the more popular investment regions such as Seattle, San Francisco, New York City, London, Vancouver and others.

• Investment security – The United States offers excellent investment security compared to many other regions. Global consulting firm AT Kearney ranked the United States as the top country for foreign direct investment in 2017 due to its stability, which retained the top spot for the fifth year in the row. Germany, China and the United Kingdom rounded out the top four.

• Established Chinese populations – There is a large and well-established Chinese populationin most of the foreign cities with large levels of Chinese investment. Investors often want to purchase properties in areas where there will be a connection to Chinese culture. In the United States in particular, the areas with the largest Chinese populations include New York City, Los Angeles, San Francisco, San Jose, Boston, Chicago, Washington DC, Seattle, Houston and Philadelphia.

• Lifestyle allure – Canada, the United Kingdom, Australia and the U.S. offer an attractive lifestyle for many Chinese investors restaurants, nightlife, outdoor attractions and much more to explore. Homes are often purchased in some of the most popular tourist areas of these countries. In other cases, there can be discounts in the United States for desirable personal items such as luxury vehicles. For example, there are frequently lower taxes and fees to drive luxury cars in the United States, while in China luxury vehicle owners may have to pay thousands of dollars in engine and luxury taxes.

Yoursz.com is a leading service connecting those who are looking to find Chinese investorswho are looking to purchase real estate in the major metropolitan regions mentioned above and others. Please contact us at (415)-463-7903 for more information about how we can assist you with finding Chinese real estate investors