Chinese Buyers Looking to Build
Chinese nationals have been snatching up U.S. homes the last few years, and now they're expanding their focus to not only home buying but building, too. CNBC reports that Chinese nationals are buying up some of the priciest parcels of land in the U.S. and are planning to build new developments to attract U.S. and Chinese buyers.
"The Chinese real estate market is very competitive, and the U.S. housing market is recovering and expanding rapidly, so for us as a company to invest a certain amount in the U.S. makes a lot of sense for us," Tian Ming, chairman of Landsea, a Chinese developer, told CNBC.
Landsea is investing $1 billion in the U.S. housing market with three new developments slated: condominiums in the New York City market; townhomes in San Francisco; and single-family homes in the Los Angeles area. U.S. home builder Lennar will design and build the project in New York City.
"Our primary customer is still here domestically in the U.S., but because of our background and who we are and our brand in China, we will get Chinese customers who will want to buy our homes," Tian says.
Chinese nationals say the real estate market in China is mostly overbuilt and overpriced, so investors are coming to the U.S. for new opportunities in real estate.
In 2013, Chinese developers invested nearly $3 billion in U.S. commercial real estate. Two-thirds of that amount was in the New York area alone, according to data from Real Capital Analytics.
"The reality is that these are very big companies. They're well-funded. The U.S. is — we think it's a good market. Obviously, we're in it. So we shouldn't be surprised that they've come," U.S. billionaire Sam Zell, chairman of Equity Group Investments, told CNBC.
Source: “Chinese Love U.S. Housing so Much, Now They’re Building It,” CNBC (Sept. 3, 2014)
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