Sarah Sitar new Real Estate blog post
In recent Orange County real estate news, Chinese homebuyers have been flooding the market in recent years because of good schooling and greater opportunities. A recent article in the “Orange County Register” writes that wealthy Chinese citizens are moving to the United States fearing a burst of their housing bubble or a government clampdown on wealth. There is a booming wealthy Chinese sector, adding 900,000 new millions in 2013. GPD in China grew 9.6%while their national savings rate grew to 16.8%. The wealthy Chinese citizen do not fell that the Chinese government protects their private property rights as well as the United States government. China does not have anything like the Federal Deposit Insurance Corporation in the United States to protect bank deposits. Thus, real estate agents are claiming that protection of wealth is the main motivation for the booming Chinese real estate surge.
A new record of $92.2 billion was spent last year from oversea US real estate purchases, and a quarter of that was from Chinese buyers. Chinese real estate spending rose %72 percent this year to $22 billion, and 35% of that went to purchasing homes in California.
The top three real estate destinations for Chinese buyers were Irvine, Los Angeles, and San Francisco. Most international buyers prefer to live with an enclave of people from their same culture, but local real estate agents are saying that many international buyers are now diversifying and purchasing property in less diverse areas of California. Chinese buyers have an appetite for low crime-rates, good schools, and luxury. This paired along with the desire to live in a similar culture have had Chinese buyers purchasing new homes in developmental areas in Southern California.
Asian buyers make up the top demographic for multiple new housing developments in Orange County. FivePoint Communities’ Pavilion Park in Orange County finds that 75% of their tenants are Asian.
You can read the full length article on the Orange County Register website here.