LA is the top city Chinese buyers want to invest and live in, NYC comes second

Chinese investment in foreign real estate is expected to increase 50 percent in three years: report

Jul.July 07, 2018 02:31 PM
(Credit: Pixabay)

Out of any city in the world, Chinese buyers like Los Angeles the best.

Based on a recent survey of high-worth Chinese individuals looking to emigrate, LA ranked the best globally with New York City coming in second. The top five ranked cities were all American, according to Mansion Global, with London being the first non-U.S. city to make the ranking. The U.K. capital was ranked sixth, notably beating out Canadian contenders, Vancouver and Toronto.

The main reason for the U.S.’ strong favor among Chinese buyers? The report, compiled by Hurun Research Institute, claims it is the American education system. (Some U.S. schools are even turning to Chinese buyers directly to save the institutions from shuttering.)

The China-based market research firm also noted that Chinese investment in foreign real estate was forecasted to increase by 50 percent over the following three years, with individuals worth more than $1.5 million looking to increase their portfolio of overseas assets by roughly 15 percent.

At the same time, however, 2017’s results for commercial investment show a different story: as The Real Deal reported, Chinese investment fell by 55 percent year-over-year compared to 2016 due to China’s strict capital controls and increased regulations, as well as more appealing deals elsewhere. The report, which was compiled by Cushman & Wakefield, explained the drop as a decrease in hotel investments in particular.

The National Association of Realtors found that, though 2017 saw an increase in the number of Chinese investors in U.S. commercial real estate, the total volume of transactions fell by 30 percent. [Mansion Global]Erin Hudson

Related Articles

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh and 4750 Wilshire Boulevard (Credit: Google Maps)

CIM Group lists part of its Miracle Mile office campus

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Charles Co. secures $215M refi for retail portfolio

Malibu Real Estate Investments principals Bedros Oruncakiel and Kirkor Suri

Malibu spec mansion lists amid softening luxury market

Joon Choi, principal at Harbor Associates, and 2400 Conejo Spectrum Street (Credit: Google Maps)

Harbor Associates leases up then sells off its Thousand Oaks office park