The Chinese Pursuit of the American Dream

11 November 2017

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Chinese citizens are the top foreign buyers of homes in the U.S. As Beijing cracks down on money going abroad, will America’s real estate market feel the impact?

A sales assistant talks to visitors in front of models of apartments at a real estate exhibition in Shenyang, Liaoning province April 17, 2014. China’s real estate investment rose 16.8 percent in first three months of 2014 from a year earlier, and revenues from property sales dropped an annual 5.2 percent, the National Bureau of Statistics said on Wednesday. REUTERS/Stringer (CHINA – Tags: REAL ESTATE BUSINESS) CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA – RTR3LM1B

One of the latest listings in the Seattle-area real estate market boasts a newly renovated home with seven bedrooms, heated floors, and a “spacious and tranquil” feel inside the quiet suburb of Sammamish. It’s asking price: $1,260,888. Another listing—this one in Bellevue, with much grander amenities like a built-in sauna and a private tennis court—is priced at a staggering $6,888,000.

The prominence of the number eight here is likely no coincidence. Both listings are found on Juwai, one of the largest online portals for Chinese citizens looking to buy property overseas (the name translates to “living abroad”). And the number eight, according to Chinese superstitions, is considered lucky.

“Many Chinese who grew up in the high-rises of those big cities in China see having a backyard as an attractive [alternative],” says Lawrence Yun, chief economist and head of research at the National Association of Realtors (NAR). Single-family homes are also more attractive to Chinese investors, he adds, because they’re generally more abundant than affordable condos in popular destinations like Los Angeles and New York City.