Chinese Investment Sees a Boom in the New York Property Market
Owning your own little piece of America. Once the American dream, to have somewhere to call your own after coming home from a long day of work but, in truly American fashion, the idea has been franchised out and a big adopter of this ideal has been the Chinese.
With China emerging as the prominent economic superpower of the moment, more and more wealthy individuals are finding investment and property opportunities abroad and many are snapping up homes on the American market with a particular view to the luxury markets such as those found in New York.
One reason for such an interest in the American market is that it is seen as a far safer investment for Chinese investors to put their money into than property in their home nation. With a continued slowdown of credit and the possibility of deflation occurring in domestic markets, a more stable and secure real estate market is what many are seeking and with a fair few using property as a way of diversifying or preserving their own assets. In effect these properties are acting as huge, luxury, safety deposit boxes.
Another reason for this rise in Chinese buyers is as simple as immigration, with America being the preferred destination for many. According to the Shanghai research firm Hurun Report, 64% of Chinese individuals with a net worth of more than £1m are either emigrating or planning to do so. Manhattan is a draw for many on the strength of its iconic sights alone. New York itself is a bustling trade hub and also offers up entertainment and leisure options that only living in such a cosmopolitan can.
The National Association of Realtors reports that the Chinese invested $22bn (£13bn) in American residential real estate in the year ending in March, which is about a 72% increase from the year before. This meteoric rise in Chinese interest has seen realtors scrabbling for new and innovative ways of attracting and growing an Asian customer base with at least a dozen new skyscrapers under construction in New York. This, in itself, is not only a massive boom for the housing market but also the construction market as well as greater interest will see greater demand.
With this sort of industry further fuelling America’s resurgent growth as of late, the country is once again emerging as the economic force it was before the 2008 downturn.
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