It looks like the Los Angeles housing market is about to get even hotter. Throughout the United States, many of the largest real estate markets are seeing a rapid increase in the rates of Chinese investors at the helm of innovative building projects. As the bubble of the Chinese real estate market is bursting, potential Chinese homebuyers are looking to cities like Los Angeles to put down roots.
China’s property market watches as their real estate market is bursting yet again. In the wake of this impending eruption governmental agencies are working to regain control of the market by employing restrictions on home buying. This means that other real estate markets are becoming more and more attractive to Chinese buyers.
In 2012, a special report undertaken by Asia Society’s Center on U.S.-China Relations and the Kissinger Institute on China and the United States provided a comprehensive study of Chinese FDI in the United States and outlined the massive potential to create economic growth. According to an Asia Society Special Report, Chinese investment in residential property amounted to $93 billion between 2010 and 2015, with commercial property at $17.1 billion.
Despite the Chinese capital controls, Chinese demand for U.S. property remains very strong. Reports in August of 2016 showed that the United States had already drawn $13 billion in real estate investment commitments from China. LA is reaping the benefit of this reward with a number of exciting building projects throughout the city.
Los Angeles has seen this gradual increase in projects such as the residential buildings at 1247 West 7th Street, 1133 South Hope Street, 1201 South Grand Avenue and 400 South Broadway, as well as mixed use buildings at 8th and Figueroa, 1020 South Figueroa Street and 11th and Figueroa Streets.
According to LA times columnist David Pierson, “Chinese developers such as Greenland, Oceanwide and Shenzhen Hazens are pouring billions into the neighborhood, adding thousands of new residential units in soaring skyscrapers that will fundamentally change the city’s skyline. Since 2014, Chinese developers have been involved in at least seven of 18 land deals downtown in excess of $19 million, according to real estate firm Transwestern.”
As Chinese investors look for alternative places to invest their money, the hot Los Angeles real estate market is an obvious win. Chinese buyers are purchasing more US properties than buyers from other nations, in LA and beyond. With high home prices in China the high price tag of luxury homes throughout the Los Angeles area will not scare off potential buyers.
If you are in the market for one of the available luxury homes in Southern California, please contact one of our experienced real estate professionals. We specialize in luxury homes in the most exclusive communities in Southern California.
Sorry, but we couldn't find any results in the MLS that match the specified search criteria.