Chinese investors come to US for bargains
February 24, 2009 11:45AM By Michael Stoler
During the booming economy in Ireland, Irish investors were rushing to New York City, entering contracts to purchase new residential condominiums. With the global recession and turbulent times in Ireland, many of these investors may not be able to close on their purchases, some in luxury condo developments where all of the units were sold exclusively to Irish investors, like the tower on Eighth Avenue between 48th and 49th streets, the residences at East 34th Street between Park and Madison avenues and a third building under construction on Lexington Avenue between 38th and 39th streets.
Looking to more aggressively capitalize on the financial downturn today are cash-rich Chinese investors.
Starting today, the Associated Press says, a number of such investors are traveling to the United States, hoping to purchase real estate at deep discounts. A group of 40 Chinese investors will be visiting New York City, Boston, California and Las Vegas for a 10-day home-buying trip sponsored by Beijing-based real estate Web site SouFun Holdings. These investors plan to view foreclosed properties ranging in price from $300,000 to $800,000.
Beijing lawyer Ying Guohua will be joining the tour and hopes to capture a residential property at a deep discount.
"It is a great time to buy because of the financial crisis, and houses in large cities like New York and Los Angeles will go up in a few years," Guohua told the AP. The home is an investment, but he hopes that one day his five-year old son might use it when he goes to college in the United States.
With the New York City brokerage business under stress, a number of local brokerage firms have created Web sites, and organized tours for people from China to visit the five boroughs. For example, New York City-based Lions Property Development Group, a real estate investment advisory firm which identifies sound American residential investments, organizes Chinese group visits to condo units. The company's Web site showcases three New York City condominium developments -- the Clarett
Group-developed Sky House near Madison Square Park, the Albanese
Organization's Visionaire in Battery Park City and the Clarett Group's
Forté in the Fort Green section of Brooklyn.
During the trips, the company reportedly treats the visitors to Broadway shows and meals at well-known New York restaurants.
In these days when there is little activity by New Yorkers to purchase condos, developers hope that the Chinese will join the ranks of the Japanese, who in the early 1990s helped the economy by purchasing residential units.
The Real Deal reserves the right to delete any comment it finds to be rude, obscene, racist, sexist, bigoted, irrelevant or repetitive, as well as inappropriate comments about anyone's personal appearance. The Real Deal does not endorse any comments posted on its Web site nor does it verify the veracity of comments or the identity of posters.
Comments
Anonymous
Yes, 40 Chinese people will singlehandedly save plummeting Manhattan real estate values. Let us all celebrate!
Comment #1 Posted By: Anonymous 02/24/09
Anonymous
Whoever organized this is a smart guy...It's too bad the 40 "investors" have no idea what they are in for.
Comment #2 Posted By: Anonymous 02/24/09
Anonymous
They are looking for DEEP discounts. If the discounts are not DEEP they won't buy, so don't everyone get so excited.
Comment #3 Posted By: Anonymous 02/24/09
Hilary Us
300-800k? I can just see Bloomberg meeting the plane at JFK, then leading the parade down the Canyon of Heroes.
Comment #4 Posted By: Hilary Us 02/24/09
Anonymous
Yes, Stoler got another terrific scoop. 40 investors x $800K = $32mm. Financial crisis solved. NY Real Estate saved. Thanks Mike
Comment #5 Posted By: Anonymous 02/24/09
Anonymous
The market here will see more correction, but this Barrons article is ridiculously skewed and alarmist. Home ownership ratios all over the country are so far above what we have here in Manhatan where 2/3rds of all inventory is rental...and of the 1/3 we have...70% is coop. Across the country, home ownership averages like 66%! And there are no coops! and there is endless sprawl! What the fuck! This Barrons guys is a class A Jagoff...and he's yelling "Fire" in a theater! I know that many on this thread love to be all doom and gloom...but come on people! Acknledge that we have better fundamentals than anywher USA!!!! This is the most anti-speculative real estate market in the world here in NYC. This guy at Barrons should be fired on the spot. He's a joke looking to sell papers. I am outraged and sick of this kind of irresponsibility.
Comment #6 Posted By: Anonymous 02/24/09
Anonymous
No #6, you are a fool. You must be one of the lying, stupid brokers. Prices for Manhattan real estate will drop 60% peak to trough. Please brokers, read something besides the NY Post. Educate yourselves and stop spewing crap.
Comment #7 Posted By: Anonymous 02/24/09
Anonymous
whether he got it or wrong, stoler is asking all of the right questions. Nice article Mike.
Comment #8 Posted By: Anonymous 02/24/09
Anonymous
#7, is that your final answer? Jai Lo you are the winner! The Chinese have just as many problems as the rest of the world. During lunch I overheard a broker loudly say that the bottom hit back in December and that the rebound was already underway. Laughter erupted at several surrounding tables and the jerk shut up immediately.
Comment #9 Posted By: Anonymous 02/24/09
Anonymous
#6 probably interprets "recovery" as a return to bubble pricing- and likely has a property "worth a whole lot" in the Hamptons that's been on the market for two years. Get real.
Comment #10 Posted By: Anonymous 02/25/09