Southern California has been a hotbed of investment for Chinese investors for the last few years. These wealthy buyers have been snatching up picturesque properties up and down the Southern California coastline with cash payments. Now it seems these buyers are not only interested in residential real estate, but also sporting real estate as many are now investing in local golf courses.
According to a report from the LA Times, the Chinese are making waves on the golf scene throughout the region by buying up beleaguered golf courses and revamping them into high-end courses. Du Sha is one of those investors who is using his massive net worth to fund his favorite pastime in the most ultimate way.
Eight years ago, Du cashed in on his China-based chain of home-improvement stores by selling them to Home Depot for $100 million. Through a series of ultra-savvy investments and some time spent as an economics professor, Du has amassed a net worth of more than $600 million. Instead of spending time and money on someone else’s golf course, Du decided to buy his own and has bankrolled Pacific Links International along with other investors. The company now owns 10 high-end courses throughout the U.S. including the $20-million Dove Canyon Golf Club located in south Orange County.
“We’re seeing a lot of tires getting kicked by the Chinese,” said Carlsbad-based golf and resort real estate expert, Jeffrey Woolson, to the LA Times. “They only recently came forward and started buying. They do love golf, so it makes sense.”
Orange County is Appealing to Foreign Investors
Chinese investors have been making their mark on the U.S. economy at an increasing rate as of late. Major Chinese investments in U.S. businesses went from $7 billion to $14 billion just last year, and have already added $8 billion more in the first three months of this year.
As a bubble builds in China, wealthy investors are seeking activity elsewhere in more stable, healthy markets such as the U.S.
“Most Chinese have 90 percent of their assets in China, and most of that is in real estate,” said Thilo Hanemann, research director for economic consulting firm Rhodium Group. “It was a great place to be over the last 10 years. They made a lot of money. But the domestic Chinese market is now very fragile and from an investment perspective, it’s not good to put all your assets in one basket.”
Although the Chinese are buying up courses in order to cater to their fellow countrymen, they have been well-received and well-receiving of U.S. customers as well. Mary George Gilman is a member of Pacific Links and is reportedly “thrilled” by the opportunity to frequent her local course in Laguna Niguel and other locations.
In addition to Dove Canyon, Pacific Links plans to buy two or three more Southern California golf courses and transform them into high-end, luxury courses.
Orange County is full of wonderful communities that are sure to appeal to any luxury home buyer. If you are interested in a home in Laguna Niguel or any Orange County community, please contact our team of luxury property experts today.
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(all data current as of 9/23/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.