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