Saturday, December 06, 2008

US Real Estate Assets Lure Chinese Investors

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Source: www.allroadsleadtochina.com
When the economy began to teeter a few months back, I proposed that Chinese investors would not look first at the Big brands (although I still believe one of the Big 3 will be bought in part/ whole by a Chinese firm), but that they would go after the real estate.
Domestic investors to shop for cheap US houses reports:
A GROUP of domestic investors is expected to visit the United States next month
to purchase discounted houses.
The 10-day trip from January 15 will cover San
Francisco, Los Angeles and Las Vegas, Shanghai Morning Post reported today.
Now for those of you who have not witnessed this before, this is a phenonmenon that was very popular in Beijing, Shanghai, Shenzhen, Hangzhou,Chengdu as full planes of HK, Taiwanese, and S’porean investors would fly into China get on a bus - and then proceed to buy property.
Typically following a single developer (Shui On, Capitaland, Hutch, etc) these fleets of investors essentially provided the hot money needed to drive the rampant property development. They were held as investments, flipped on a dime, and often remained empty for years.
Were this to be the first plane of many, there would be many interesting opportunities here, and my guess is that if you are in a city that is (1) safe (2) has a strong/ burgeoning Chinese community (3) has good academic institutions (4) has large clusters or developments in need and (5) has clean air… you are probably in the best position, and if you are one of those Americans looking to sell a property I suggest you learn a few simple phrases on welcoming guests and real estate terms over at Chinesepod.

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