Chinese are Long U.S. Real Estate to the Tune of $300 Billion

Anyone in high end real estate will tell you tales of all cash offers for multi million dollar properties from outrageously wealthy Chinese buyers.  That exposure has now topped $300 billion.

The reason is two fold. There is a fast growing upper class, an oligarchy, in China. And, the second reason, they want to get their fucking money out of China.

The best place to park cash is in treasuries, euro bonds, or real estate in big western cities that have liquidity.

Hence, the $300 billion exposure.

Between 2010 and 2015 Chinese buyers bought $93 billion in residential real estate, nearly $208 billion of mortgage-backed securities, and roughly $17 billion of commercial real estate, including office towers and hotels, according to the report by the Rosen Consulting Group and the Asia Society.
The average home price for Chinese buyers in 2015 was $831,800, compared with $499,600 for all other international buyers. In terms of the total dollar amount spent on U.S. homes, China surpassed every other country from 2013 to 2015, the report found.
In 2015, Chinese investors for the first time bought more homes than buyers from Canada, formerly the leading purchasers of U.S. homes, according to the report.
One reason Chinese buyers spend more, the report found, is their tendency to buy in expensive property markets. In 2015, 35 percent of Chinese house purchases were in California, followed by 8 percent in Washington, and 7 percent in New York.

Anyone remember the anti Japanese rhetoric that was being broadcasted in the 90s, with lunatics saying “they might’ve lost the battle (WW2), but they’re winning the war” (by buying up American re)?

That didn’t work out too well for them and something tells me neither will all of this Chinese buying.