According to the National Association of Realtors, Chinese investors were the most active foreign buyers of US real estate last year, spending a record $6.1 billion on primarily Florida and California properties.
A record $6.1 billion was spent on properties in Florida and California by Chinese investors last year, according to the National Association of Realtors (NAR).
There were an average of slightly over $1 million per transaction spent by buyers from mainland China, Taiwan, and Hong Kong to acquire existing residences, with over a third of those agreements (31 percent) including the purchase of property in California.
Canada came in second place in this year’s tournament. Between April of last year and March of this year, investors from across the border spent $5.5 billion on US residential properties.
Buyers from Mexico, India, and Brazil account for the final three tenths of a trillion dollars.
Data from the National Association of Realtors shows that Florida received the greatest number of real estate acquisitions. For the 14th year in a row, foreign investors were the most interested in purchasing houses in Florida. Twenty-four percent of all overseas property acquisitions in the United States were made in Florida, with California coming in second (11 percent ).
Texas attracted 8% of all international real estate transactions, while Arizona accounted for 7%. At 4 percent, New York and North Carolina were tied. Foreign buyers spent a total of $59 billion to purchase 98,600 existing homes in the United States, an increase of 8.5% compared to the previous twelve-month period. 44 percent of these purchases were cash transactions, which is nearly double the rate for all existing-home buyers.
Foreign-based investors were twice as likely as foreign-based residents to make an all-cash purchase. According to the National Association of Realtors, nearly six out of ten Chinese buyers and 69 percent of Canadian investors made all-cash purchases, while slightly more than a quarter of Mexican and Brazilian buyers did the same.
Nearly half of the foreign purchasers, or 44%, purchased their properties as vacation homes, rental properties, or both. This year, Lawrence Yun, chief economist for the National Association of Realtors, predicts that overall home sales in the United States will decrease due to rising interest rates.
“However, foreign buyers are likely to increase their purchases, as all-cash offers are immune to changes in interest rates.” “Additionally, international flights have increased in recent months as a result of the removal of pandemic-related travel restrictions,” he said.
Senior economists warned earlier this week that the US housing market may be on the verge of a “meltdown” following the release of data showing a precipitous decline in home builder confidence in July.
How to gain Chinese investors’ trust?
Chinese investors have giant potential in the international property market, and they are also more rational than in the past years. How to gain their confidence in your property propositions is very important for overseas businesses.
You need to go through several key factors in order to sell your property on the market. Working on your visibility and improving your brand image is primordial for your success. Aiming at the Chinese market, you must adapt specific strategies to the market. Chinese digital marketing channels and rules are not the same as in other countries.
The importance of e-reputation in China
Even though your company is already well established in your country, Chinese consumers are still going to be cautious. In fact, you will have to take care of your online reputation and use digital tools to increase your visibility, promote your company and gain their trust.
China news sources such as Sohu and Fung Fung are the places where investors can browse for information. If you are not active on Chinese social media and have not yet created Chinese content, you won’t be able to reach Chinese potential clients. So, if you want more information about e-reputation in China, do not hesitate to contact us directly.
The most important aspect of a successful PR campaign is localizing your project with trending news in China; this increases the relevance of your message to the reader and dramatically increases the share rate and readership levels.
In order to conduct a successful public relations campaign in China, you must consider current events. In fact, it will increase the relevance of your posts and the rate at which they are shared.
For example, news can be tied in with:
- Trending Topics & Keywords
- Breaking Chinese News Stories
- National Days of Holiday in China
- Well known Chinese figures in your field
- Local celebrity endorsements
Be aware that PR is a major part of a campaign, so you will need to hire experts in the real estate industry to ensure that your posts are clear to understand for your Chinese consumers.
Are you looking for PR agency in China?
As specialists in the Chinese market with almost 10 years of experience, we basically know all the strategies in order to succeed in China. Over the years, we were able to enhance our services and strategies in the Chinese market.