The number of wealthy individuals in China is increasing. According to the Hurun Report, there are currently 960,000 millionaires in China, each with assets of at least 10 million yuan (approximately 1.5 million USD). Chinese people have a natural inclination to buy property. Real estate prices in the United States have fallen by about one-third since their peak in 2006. There are no purchase restrictions in the United States. Some astute wealthy individuals in China have begun to target the U.S. real estate market, immigrating to the United States to purchase homes. Recently, USA Today described the influx of cash from China as a Great Wall of money flooding into the U.S. real estate market. So, where do Chinese nationals prefer to buy property in the United States?
1. Cities with a Concentration of Chinese Nationals. The most favored cities are New York, San Francisco, and Los Angeles. In these large cities, one can experience the extravagant lifestyle of capitalism while retaining the culinary culture of their homeland, and not knowing English will not render one a "mute": advertisements in Chinese newspapers cover almost every conceivable service.
2. Areas with Significant Real Estate Challenges. For example, Florida and Nevada. In Las Vegas, Nevada, one can purchase a fairly nice villa for around a hundred thousand dollars. However, the climate there is dry and the summers are extremely hot, making it less than ideal for living. Wealthy Chinese individuals buy property there primarily for investment purposes, waiting for appreciation.
3. Areas Where Relatives Reside. Some wealthy Chinese already have relatives who have moved to the United States for study or work. They are spread across the country. In addition to the aforementioned areas, many reside in Washington State, Texas, Illinois, New Jersey, Maryland, Virginia, and Massachusetts. Wealthy Chinese individuals buy property near their relatives to allow them to share or provide assistance.
According to data from the National Association of Realtors, as of the end of March 2012, wealthy individuals from China spent 7.4 billion USD on real estate in the United States over the past 12 months, helping to "stimulate domestic demand" in the sluggish U.S. real estate market.
The median price of homes in the United States is less than 200,000 USD. In popular areas such as California, New York, and Massachusetts, prices are around 500,000 USD. The philosophy of wealthy Chinese individuals is to "only buy the most expensive," so they typically make "big purchases," acquiring properties worth over a million dollars. Moreover, it astonishes Americans that many wealthy individuals pay in cash.
There are Chinese real estate agents throughout the United States. They do not receive a salary and live off commissions, which are usually around three percent of the sale price. Selling one house in a month can yield income far exceeding that of an engineer. The United States does not have "sales agents"; most agents are middle-aged or older, many of whom hold legitimate doctoral degrees from American institutions. Wealthy individuals from China are their "golden geese."
Information in the United States is transparent. Anyone's property situation is public information.