According to a report by People's Daily: Today, as entrepreneurs and individual families who promote the global economy and contribute to China's economic growth and wealth accumulation continue to rise, "investment immigration" is growing rapidly, the pace of "overseas property investment" is accelerating, and the ranks of "overseas home-buying groups" are expanding. These trends collectively reflect that investment immigration has become an important component of the international capital investment and wealth management strategies of China's high-net-worth individuals.
(1) "Investment Immigration" Booms, Overseas Property Investment Becomes a New Trend in Immigration
In recent years, the term "investment immigration" has appeared with increasing frequency, and its growing share of total immigration is a prominent phenomenon in the current wave of Chinese overseas migration. Over the past three years, the number of Chinese people immigrating to the United States through investment has grown rapidly.
According to the latest data from the U.S. Department of State, the number of people who received conditional green cards under the EB-5 program in 2012 was 6,124, which is 2.5 times that of 2011 and 7.9 times that of 2010. Statistics on the number of Chinese immigrating to the U.S. show that in 2013, 87,017 people obtained permanent U.S. green cards (permanent residency), ranking among the top in total international immigration. In August 2014, the 10,000 investment immigration quota for that fiscal year was exhausted, marking the first time the quota had been fully utilized since the U.S. introduced the investment immigration act. According to statistics released by USCIS on August 21, 2014, there was a backlog of 10,375 I-526 applications.
Additionally, according to the latest report from the Beijing Evening News, on January 26, JLL released a report stating that China's overseas real estate investment surged in 2014, exceeding $16.5 billion, an increase of 46% over 2013. Another globally renowned institution, Knight Frank, also released the "China Outbound Real Estate Investment Report" on January 26, pointing out that China's investment in overseas properties has entered a brand-new stage.
David Green-Morgan, Global Capital Markets Research Director at JLL, predicts: "It is highly likely that China's investment in the overseas real estate market will continue to grow in 2015, potentially reaching $20 billion by the end of 2015." Among this, commercial real estate investment led the growth by nearly 50%, exceeding $11.2 billion, with existing office buildings and hotel assets becoming the most popular choices for Chinese overseas investment. Chinese residential developers increased their overseas investment allocation by over $5.3 billion, a 38% increase compared to 2013.
According to a survey by the Boston Consulting Group, the proportion of high-net-worth individuals owning overseas assets in 2012 was 28%. In 2011, Chinese individuals with investable assets exceeding 6 million yuan held approximately 33 trillion yuan in assets within China, of which 2.8 trillion yuan had already been transferred overseas, accounting for about 3% of China's 2011 GDP.
(2) China Has Become the Second Largest Overseas Real Estate Investor in the United States
Along with the rapid growth of investment immigration, "overseas property investment" and the purchase of real estate are also increasing rapidly. Since 2011, Chinese people have become the second-largest group of overseas real estate buyers in the United States. Over the past year, Chinese overseas home buying has been nothing short of frantic. In countries such as the United States, the United Kingdom, and Australia, Chinese real estate buyers have quickly become a new customer base for local property markets, often referred to as "Chinese home-buying groups."
The Center for China and Globalization believes that behind the massive overseas home-buying groups lies a huge potential pool of overseas investment immigrants. According to a survey by SouFun International, among 12 million potential buyers surveyed, 43% indicated that immigration was the primary purpose for overseas property investment; followed by education at 25%; and investment at 23%.
Currently, China has become the second-largest overseas real estate buyer in the United States. In the year leading up to the end of March 2013, the total value of U.S. property purchases by Chinese buyers reached $12.3 billion, accounting for 1/8 of the total amount spent by foreigners on U.S. property that year, second only to Canada, with an annual growth rate as high as 66%.
The "2014 First Half China Overseas Real Estate Investment Report" released by SouFun International shows that in the first half of 2014, the top three most popular countries for Chinese overseas property purchases were the United States, Canada, and Australia. Among these, demand for property in the U.S. was 26%, while Canada and Australia ranked second and third with 19% and 17% respectively, showing strong appeal of these three countries' property markets to Chinese buyers.
The report released by SouFun International shows that after experiencing the downturn of the economic crisis, the U.S. and Canadian real estate markets returned to stability and gradual growth in 2014. Good investment return potential ensured the high attractiveness of property in both the U.S. and Canada. Favorable trends led to a 5% and 8% increase in the number of Chinese consumers heading to the U.S. and Canada to purchase property, respectively, with repeat investors (or those purchasing two or more properties) accounting for about 40%.
It is worth noting that of the $12.3 billion in property purchases, 69% was paid in full with cash. In March 2013, China surpassed India, the UK, and Mexico to become the second-largest foreign buyer in the U.S. housing market. According to a report by The Wall Street Journal, New York remains the top choice for Chinese investors, followed by Los Angeles, Philadelphia, Detroit, and Houston. Thus, it is evident that the United States remains the preferred destination for Chinese people choosing investment immigration.
Worldway immigration experts analyze: Most people immigrating to the United States value not only the superior living environment but also the "soft environment" of the U.S., such as the emphasis on self-realization, social inclusiveness, international capital investment and wealth management strategies, advanced educational and medical resources, and social welfare, such as the U.S. social security system. Currently, against the backdrop of a strong U.S. economic recovery and the U.S. dollar exchange rate entering a rapid upward channel, U.S. investment immigration as a form of international capital allocation will become even more popular. The U.S. EB-5 investment immigration program is highly sought after due to its simple application requirements and short cycles. One person applies, and the whole family immigrates. After obtaining a green card, one can freely enter and exit the U.S., live and work in any region of the U.S., and there is no "immigration jail" (residency requirement).
For U.S. EB-5 investment immigration, the key to success lies in project selection. The 2015 fiscal year for U.S. investment immigration will face major events such as the arrival of visa backlogs, a surge in applications, and the expiration of the Regional Center program, with a high probability of an increase in the required investment amount. Therefore, choosing an EB-5 project that has been pre-approved by the U.S. Citizenship and Immigration Services (USCIS) has become the best choice to cope with uncertainties. The Pennsylvania Turnpike project and the New York Liberty Garden luxury apartment project launched by Worldway are both high-quality EB-5 projects pre-approved by the U.S. immigration authorities. To immigrate to the U.S. and implement your international capital investment and wealth management strategy, please call 400-138-2929 to secure your spot immediately.
