Recent comments and actions from one luxury brokerage suggests Los Angeles homes priced above $10 million should continue to be pursued by Chinese buyers this year.
Prominent luxury brokerage John Aaroe Group recently teamed with China’s largest online property search engine Juwai to better propose deals to Chinese investors.
Where else will global luxury buyers be looking? Find out at Global Connect, April 6-7, 2016.
One broker with the firm, Aaron Kirman, recently told Caixin Media, a Beijing-based media group, that he has received a number of detailed inquiries from Chinese buyers for his listings priced between $15 million and $135 million.
The majority of these high-priced homes are located in either Beverly Hills or Malibu.
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According to Kirman, Chinese buyers want privacy, a view, supporting facilities and architectural beauty. One reason they’re attracted to L.A.: An investment in a home has “long-term security.”
An international buyer report from the National Association of Realtors (NAR) found that the top city searched by Chinese during a 12-month period on realtor.com was Los Angeles.
How Chinese investment will impact the rest of the market
With demand among Chinese buyers apparently steady, might we see more L.A. brokerages consider the recruitment of Mandarin-speaking agents?
With downtown Los Angeles slated to receive a wave of new condos and reconversions, will Chinese buyers scoop up detached product as well?
Juwai notes that although mainland Chinese buy most of America’s luxury homes, the most liberal with their money remains Chinese-speaking American citizens. NAR concurs, recently stating that roughly half of Chinese purchasers were resident buyers.
In an international buyer report, NAR also found that Chinese purchase more expensive homes compared to other international buyers.
North of LA, San Francisco represents another attractive market for Chinese investors. One firm, Pacific Union, predicts foreign investors, specifically Chinese buyers, will represent a “healthy part of the market” in 2016.
In Chicago, Chinese investors are the most prominent foreign buyers of condos and appear undeterred by rising costs, according to Dan Wagner, president of the Chicago Association of Realtors.
