Southern California Dips in Relative Popularity Amongst Chinese Investors
Chinese investors seeking to acquire new real estate have traditionally invested a significant amount of money in certain areas of the nation, including Orange County and the Los Angeles area, along with San Francisco and New York. But SoCal has dropped off in popularity as another city — Seattle — takes its place. So what accounts for this change? That’s precisely what we’ll explore in today’s article from Southern California Berkshire Hathaway Realtor Brittany Leighton.
A Look at Chinese INvestors and Real Estate Trends
According to Forbes, Southern California real estate has traditionally attracted far more attention from Chinese real estate investors than the real estate in Seattle. But according to Juwai.com, a site for Chinese real estate investors, Seattle properties have garnered the most attention of any U.S. city in 2016.
This change in popularity rankings actually hasn’t been the result of dipping figures in Southern California; rather, it’s a change in relative popularity. It’s believed this jump in Seattle real estate popularity has resulted from a new tax that has been implemented in nearby Vancouver, British Columbia.
Canada’s government recently implemented a new 15% tax on international real estate transactions in Vancouver, BC, so it’s believed that many of these buyers took their investment dollars elsewhere — to nearby Seattle. In fact, figures in Seattle more than doubled, while Vancouver sales have dropped by almost half in recent months.
So while normally, a dip in relative popularity amongst real estate investors would be bad news for local sellers, this has actually resulted in no significant change in Southern California’s actual sale figures. Overall, the news is good.
Overall, the U.S. saw $27 billion in real estate sales involving Chinese home buyers in 2015. California topped the list, followed by New York, Texas and then Washington State. Incredibly, Chinese money accounts for approximately 55% of all of the Washington homes that are currently being purchased by international buyers.
It’s the luxury homes that tend to be most popular amongst Chinese buyers, with the average price tag coming in at $1.2 million.
Contact Realtor Brittany Leighton to Buy or Sell Real Estate In Southern California
Brittany Leighton, of Berkshire Hathaway and Brittany Leighton & Associates, Inc. specializes in luxury property sales in Southern California, including Orange County.
If you’re ready to sell your home or wish to buy real estate in Southern California, turn to an award-winning real estate agent, Realtor Brittany Leighton. Call 949.480.7178.