US real estate is once again the top spot for Asian buyers, according to China’s largest foreign property portal. Juwai crunched the numbers on the top destinations for Asia’s buyers, in its annual report. The US claimed the number one spot in 2020, after falling behind countries like Thailand in prior years. Canada managed to hold its fourth spot for a second year, with the bulk of buyers looking at just two cities.
Second-Homes, and FOMO Driving Overseas Buyers
There’s some common themes amongst top markets, according to Juwai. “Monetary stimulus around the world has pushed interest rates to historical lows, and helped drive prices upwards,” said the firm. This has created two major trends – bargain hunters of hard hit economies, like Thailand, and FOMO. Juwai’s report states the latter has “… driven some Asian buyers to a near frenzy.”
US Real Estate Is Once Again the Top Spot For Asia’s Buyers
Real estate markets in the United States have once again taken the top stop for buyer demand. In 2020, the market ranks as the number one market for Asian buyers, up from the 4th spot a year before. Buyers are split between high-net worth and those with more modest incomes.
High-net worth home buyers are looking at traditional “gateway cities.” New York, Los Angeles, and Miami top the list, and have always been popular, being hubs for immigration. The firm’s clients are largely buying part-time residences, or investment properties.
Households with more modest incomes are looking to buy in smaller cities. According to Juwai, “Asian buyers are looking to the nation’s smaller cities as a source of price appreciation.” These buyers are also less concentrated in gateways, and instead are following domestic trends.
Canada Real Estate Holds The Number 4 Spot
Canadian real estate still held its rank as the number four market for Asia’s real estate buyers. Buying remains concentrated in Toronto, Vancouver, “and — to a lesser extent — Montreal.”
Even overseas buyers are being driven by FOMO, showing it’s not just a local thing. Juwai notes, “foreign buyers are eager to gain from fast-growing property prices and fear having to pay more if they postpone their purchase.”
The pandemic slowed foreign real estate buying, but didn’t totally stop it. Domestic FOMO is still pushing buyers to search for property, even if they can’t cross the border. More interesting is overseas buyers aren’t necessarily sticking to major markets. Instead, many are looking at domestic buying trends, and chasing investment returns. This is a trend that BC’s property registry also reflects.
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