The Real Deal New York

Surge in visas issued to Chinese lures developers to NYC

Money from the People's Republic seen spurring investments
May 13, 2014 05:00PM

In a trend that can be seen both locally and nationally, wealthy citizens in China are receiving the vast majority of  investor visas from the U.S. government.

About 80 percent of the recipients of the visas under the EB-5  program are from China. That program allows foreign nationals to receive residency status after they invest $1 million, or $500,000 in an area with high unemployment. The number of U.S. visas issued to Chinese investors in this program reached 6,895 in 2013, up from less than 2,500 in 2011.

The influx is having a dramatic impact on the real estate market in New York City, as  well as other major metropolitan areas like San Francisco. According to Forbes, an independent poll of Manhattan real estate brokers showed that Chinese investors are now the No. 1 foreign buyers of property in New York, a position that previously belonged to investors from Russia.

The money from the People’s Republic is also spurring investments by Chinese real estate companies in the U.S. In New York City, Chinese investors are involved with a variety of large scale projects. Greenland Holdings bought a 70 percent stake in the Atlantic Yards project. Shanghai-based Fosun Group purchases One Chase Manhattan Plaza late last year and is looking to invest in more properties.

And China’s largest developer, China Vanke, broke ground on a 61-story residential skyscraper in Manhattan earlier this year. The company bought the property together with two American partners and a Chinese investment fund, according to Forbes. The project seemed to have been particularly interesting for the investor, because of the options of selling the condos to wealthy clients in China.

The boom in Chinese investments in the US and other countries has been fueled by lack of meaningful reforms in China as well as the rising purchasing power of  the country’s consumers, according to the American Enterprise Institute. [Forbes] — Claire Moses

  • The 80 percent Chinese investor figure for U.S. EB5 investor immigrants is well known and will result in the creation of a backlog, and so-called retrogression, in about July 2015 when applicants who applied after May 2013 will face a two-year waiting line. This is coming to the EB5 program next year, but only for Chinese investors from mainland China. These investors will have to look for other options which may include Canada. What is also of interest is who are the other top investor immigrant-generating countries for the EB5 U.S. program. They are as follows: South Korea, Mexico, Venezuela, Iran, India, U.K. and Taiwan.

  • normanoder

    How exactly does “surge in visas issued to Chinese lures developers to NYC”?
    It seems to me that “surge in visas issued lures developers to set up regional centers to get cheap capital by using an astoundingly lucrative federal program.”

    Norman Oder
    Atlantic Yards Report

  • Cummbottom

    Is this lampoon or what? Fully abreast the need to lure. Whom? Certainly not reputable firms NYC! Chinese state owned companies
    developers. Seeking anyone to invest this test. First prominent developers worries loans. Lack of available capital lower rate. Bankers,
    hedge fund and insurance executives. Demand “Rotten Apple” equity
    along cash. Not debt? Why Harry lost GM building plenty envy. Still
    journalism Chinese eager to invest. Inaccurate they expect higher percentage. Immediate returns you need lure. Whom developers from
    ASEAN free markets. Whom cause gentrification of California. Favor
    new developments abatement. Tax exemptions not resolved lower. Interest of Class A loans. Bridge loans hard to find no. Matter brokerage firms friends why. Australian,Brazil,Korean,Indian,ASEAN
    Free Market,Dutch,French,Canadian and Swedish. Eager to invest
    market cap immediate returns. Implosion and urban gentrification of L.A. And San Francisco dominated by developers. Not collaborating with sharks. Have cash out bidding local developers. Say lower SOMA
    San Francisco Brazilian. Korean a