WHY Chinese in China are buying real estate in New York?
- Safe & stabilized political system and economy.
- No legal & financial restrictions for foreigners to buy and invest in real estate properties.
- Safe haven – New York has the most stable real estate market in the world.
- Good schools & universities for Chinese children to attend.
- Many global financial, diversified companies and hospitals in New York for employment.
- New York is the financial capital of the world.
- World-wide investment in New York real estate.
- Good returns on real estate investment.
- EB-5 investment for permanent residency in the United States – many New York based real estate companies have the EB-5 approved projects.
- New York City is a city that never sleeps. More suitable to the Chinese living style with all its easy accessibilities and availabilities of merchandise, daily necessities, conveniences, brand name and “no name” shops, large department stores, restaurants, world’s best museum, city with most national sport teams such as basketball, football, hockey, and baseball.
Last but not least, New York City is the entertainment center of the world with musical, Broadway shows and the Lincoln Center.
- Well extended public transportation system such as subway, public buses, commuter train & buses, taxi, limousine service etc.
New York is a pedestrian city that one can walk on the streets and not the highways like in other United States city.
- In 2012, Chinese government loosen restrictions on foreign investment.
- Cash heavy Chinese companies like the insurance company are looking for high returns on investment.
- Rapidly appreciating Yuan.
- Slowing Chinese economy.
- High property prices in China.
- Complicated property ownership rules in China.
- Growing Chinese population with newly acquired wealth.
- For Chinese immigrants who choose to settle in New York City because of its many potential job opportunities, choices of schools and universities. The foremost priority for any immigrant is to buy a house or condo to settle down as quickly as possible.
WHAT real estate the Chinese in China are buying in New York?
Below is an investment chart giving the readers an idea of the magnitude of Chinese real estate investment in New York City. The information is taken from various data sources deemed reliable. It is presented subject to errors, updates and changes without prior notice.
|Year||Chinese Business Entity||Investment Description||Investment Address||Investment Amount|
|2012||Xinyuan Real Estate||Condo Development – 216 units||429 Kent Avenue, Williamsburg, Brooklyn, NY||$54,000,000|
|Xinyuan Real Estate||Condo project||Hell’s Kitchen|
|Xinyuan||Development site||East 60th Street NY|
|SOHO China||40% stake in General Motors office building||Fifth Avenue, NYC||$700,000,000|
|Wanda Group||Movie theaters|
|China Vanke||Condo building – 61 story||610 Lexington Avenue, NYC|
|Greenland Holding Group||Mega project -Condo building||Pacific Park, Brooklyn|
|Fosun International||Office building||1 Chase Manhattan Plaza||$725,000,000|
|2014||Anbang Insurance||Hotel – Waldorf Astoria||$1.95 Billion|
|2015 February||Sunshine Insurance Group||Hotel & Residences – Baccarat Hotel||20 West 53rd Street, NYC||$230,000,000|
|Chinese buyer||Sherry-Netherland Penthouse||$70,000,000|
|Chinese buyer||Condo||157 West 57||$47,4000,000|
|2015 December||Kuafu Properties||Development site||143-155 East 60th Street||$300 million|
|Kuafu Properties||Bulk Apartment purchase||MiMa Tower, New York City||$260 million|
|Kuafu Properties||Development site||East 86th Street & Lexington Ave||$134 million|
|Kuafu Properties||Development site||Hudson Rise||$62 million|
|2015 December||Bank of China||Office Tower||7 Bryant Park||$600 million|
According to Cushman &Wakefield, the global real estate company based in New York City, between 2008 and mid-2014, Chinese investors poured $33.7 billion into real estate in the U.S., predominately targeting New York, Los Angeles and Washington, D.C.
Of that total, $5.9 billion went to Manhattan and another $717 million was invested in the outer boroughs such as Brooklyn & Queens in New York.
For the first time in 2014, wealthy Chinese buyers spent more on New York City real estate than Russian billionaires.
A good example to illustrate it is a good profitable investment in New York City real estate if the location choice and timing are “right”, and follow the time proven advice “Location, Location, Location”.
Below is a snapshot of the sales transaction chart showing the resale profit for 15 Central Park West in New York City from 2010-2013. Since then the resale dollar amount has rocketed for the other resale units.
Information is taken from the New York City records and it is presented subject to price changes, errors and updates without prior notice.
|15 Central Park West Unit #||Square Feet||First Closing Date||Sale Price from the Developer||2nd sale date from the resale||Sale Price||Profit for the seller|