The Real Deal New York

Chinese real estate investors not concerned with yields: VIDEO

January 07, 2014 08:07AM

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

  • David Landau

    I will apologize for Dottie Herman and Jason Meister. I apologize to all my Chinese friends, colleagues, clients and potential clients for Dottie and Jason’s hypocrisy. They are saying that Chinese are big buyers and, of course, very happy to collect the commissions but they are very negative about the Chinese owning a lot of U.S debt and they are now buying our equity in the form of Real Estate. I am ashamed in the way they express their greed and their feelings. Please understand I do not feel the same way. I am grateful that the Chinese are lending us very cheap money and I am very grateful that they customers buying our U.S. real estate.

    David Landau

    • Correct. In fact it is best for both China and the United States if the longstanding imbalances are corrected in an orderly way by Chinese buying real estate and businesses here.

  • Peter

    It’s really good news that Chinese real estate investors are
    moving towards New York. The above written information will definitely helpful
    to the Chinese investors. I am feeling good that the Chinese customers buying
    our U.S. real estate but my request for them to stop showing up a lot in front
    of Americans. I would like you to visit
    for Rochester real estate.