Chinese investors have been increasingly looking toward foreign shores in the wake of the housing bubble in China. Seattle in Washington has emerged as one of the favored destinations for wealthy Chinese real estate investors.
In the past few months, since the Chinese government started imposing stricter property rules, potential investors have been drawn to the emergent markets of San Francisco, Los Angeles and Vancouver. It looks like the seaport- city has also joined the list of favored places by mainland Chinese investors.
The Seattle property market has gained popularity in the recent few months. The Citi Private Bank reported that in the past one year, the number of mortgage loans availed by Asian buyers increased by almost 30 percent. But the investors are so enticed by the properties and their values in the city that they sometimes pay the full amount in cash too, reports The Seattle Times.
So why has Seattle suddenly become such a great city to invest in?
Apparently, there are various reasons. While some of Chinese property buyers either want to set up business or want their kids to study here, the others just consider it a safe haven. Moreover, since the city is a sea-port, it is even more "Feng-Shui" favorable. Having a water body around the home is believed to be a good sign.
Check out some Pre-home buying Feng Shui Tips, here.
Seattle caught the Chinese eyes, when President Hu Jintao visited the city in 2006 as a part of his first trip to America. More recently, a Chinese movie titled," Beijing to Seattle" also publicized the city quite a lot, reports Longview Daily News.
"It's only natural that they want to be part of a better environment, clean water, clean air, less density of people," Leo Peng, the managing attorney at the Beijing office Garvey Schubert Barer, a popular law firm, said to the Associated Press.
Meanwhile, many foreign projects are also coming up in the U.S. Chinese developers are loading their portfolios with projects based in America. Recently, China's biggest property developer, China Vanke, debuted in the American market in a partnership deal with Tishman Speyer.
But should the Chinese developers only invest in residential properties for business to thrive?
Feng Lun, Chairman of Vantone Holdings in Beijing said to Forbes:
"If a developer wants to succeed overseas with residential properties only, that will be hard. The U.S. real estate industry is highly segmented. If Chinese companies invest by acquiring highly experienced local firms, use their expertise in the local markets and combine this with their domestic customer demand, then they might succeed."
