Dwindling returns at home coupled with the perception of the United States as a secure parking spot for their money have led Chinese real estate investors to New York in record numbers, according to Douglas Elliman CEO Dottie Herman and Avison Young investment sales broker Jason Meister.
On the commercial front, Chinese investors aren’t as concerned about financial market indicators — such as cap rates and yields – as domestic investors are, Meister, speaking on Fox Business, said. Rather, the Chinese are focused on getting the money out of China and parking it in the United States, he said.
“The U.S. is basically a safe haven right now,” he said.
Speaking about the residential market, Herman said that although the trophy buys by wealthy Chinese moguls were grabbing the headlines, the average Chinese investor was paying between $1 million and $5 million for an apartment in the city, and that they favored new development projects. In particular, the Chinese were buying apartments for their children, who they intend to send to school in New York in the future. [Fox Business] – Hiten Samtani