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crisis, it went up slightly above 2 percent, but gener- ally, it has been very, very low compared to other places,” she says, making it easy to rent out a condo. GOVERNMENTS MAKING BUYING MOREDIFFICULT Hsu says that the Chinese and American governments are now making it more difficult for Chinese clients to buy U.S. real estate, putting a crimp on Chinese pur- chases. Chinese investors have traditionally been able to transfer $50,000 per year out of China to buy real estate. To buy a million-dollar property, 20 people would transfer their $50,000 allotments into one account. After years of lax en- forcement, both govern- ments are strictly en- forcing the policy. “Since that started last year, it’s definitely a little bit more challenging for a Chinese buyer whose money is not already out of China
COUNTRYPROVIDING THE MOST STABLE SECURE REAL ESTATE INVESTMENTS
2013
2014
2015
70%
60%
50%
40%
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30%
20%
10%
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0%
SOURCE: Juwai Survey
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American developers have noted the trend and are actively marketing to Chinese investors. In 2015, Extell Development exclusively marketed The One Manhattan Square condo tower to Asian buyers. The 800-unit building has condos priced from $1 million to $3 million. U.S. buyers were told to wait until this year for their chance to buy. Chinese investors love New York, especially Manhattan. Not only is it “the” name brand in American real estate, properties hold their value on Manhat- tan. Even though it’s a very expensive address, Hsu says Chinese investors find value on the island. “The vacancy rate in Manhattan has been below 2 percent for the past 10 years. During the financial
to buy in the U.S. There’s a way it can be done, but it’s generally a lot harder compared to before,” says Hsu. That said, Hsu thinks that “the U.S. is still a very good investment. The law mainly targets the politicians and mon- ey laundering, so since the majority of people are not politicians, my feeling is that it will work out. It’s just a matter of time. The need is there, so I still believe that this market is still very strong.” •
RESOURCES
ASIA SOCIETY www.asiasociety.org | 212-288-6400
CITY CONNECTIONS REALTY www.lp-nyc.com | 917-902-6489
JUWAI www.juwai.com | 646-281-7322
ROSEN CONSULTING GROUP www.rosenconsulting.com 510-549-4510
Robert Springer is a regular freelance contributor to Think Realty Magazine. Contact him at rtspringer@gmail.com.
Call (800) 248-8447 today or visit www.iraservicestrust.com/RE
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