Global stock markets have started the year with volatility—especially in China. But when it comes to real estate, investors in China and elsewhere expect to spend more money this year in the United States. HPR’s Bill Dorman has more in today’s Asia Minute.
About 95% of foreign investors in U.S. real estate plan to maintain or increase their holdings this year. That word comes from the Association of Foreign Investors in Real Estate, which has been doing these surveys for the past 24 years. Higher interest rates and sluggish economies are concerns. And here’s a similarity with global stock investors: nearly 90% of those surveyed specifically cite the risk of a slowing Chinese economy.
As for U.S. city preferences of foreign investors, the list begins with New York, and then includes Los Angeles, San Francisco, and Washington DC. Seattle and Boston tie for 5th place. Honolulu doesn’t make the top ten for global investors, but Hawai‘i real estate remains popular among many in the Asia Pacific.
Title Guaranty tracks foreign buyers of Hawai‘i real estate…and it will probably be late February before the company comes out with its full-year report for 2015. Throughout the first nine months of the year, the Japanese remained the biggest buyers…mostly on O‘ahu. Number two are the Canadians—spending most of their money on Maui. Number three are the Chinese, followed by residents of Hong Kong. And through September, the list of top international buyers of Hawai‘i real estate is rounded out by Singapore and Australia.
