As private money lenders in the Northwest, we share relevant real estate news to keep you informed and achieve quality real estate investments in Seattle, Tacoma, Colorado, Montana, Utah, and other markets. At Juniper Capital, we specialize in private construction loans, private commercial real estate loans, agricultural real estate loans, and more. Contact us today for more information about market trends, a current market valuation of your specific development, or any questions you may have about the real estate loan process.
The Wall Street Journal recently reported that “Chinese net purchases of U.S. commercial real estate last year dwindled to their lowest level since 2012, as Beijing kept up the pressure on Chinese investors to bring cash home during a period of worsening economic growth.” Selling trends during three consecutive quarters in 2018 show a distinct turnaround from the prior five years, when “Chinese investors instead went on a massive buying spree, often handily outbidding other investors for U.S. trophy properties.”
When it comes to commercial real estate purchases in the U.S. by Chinese real estate investors, last year’s net purchases were the lowest in six years.
Chinese nationals have also been selling their U.S. homes, while fewer new buyers are entering the market. “Home purchases by Chinese in the U.S. tumbled 4% from April 2017 to March 2018 compared with the same period a year earlier, according to the most recently available data from the National Association of Realtors.”
While Chinese buyers never represented more than a fraction of the activity in any major U.S. city, the big checks they wrote helped push values higher in certain segments of the market. The sudden turnaround is likely due to increased tension between the U.S. and China, higher home prices, a strengthening dollar, and the Chinese government’s efforts to stabilize their economic slowdown.
This emerging trend is one that we will continue to monitor closely. At Juniper, we pride ourselves on providing value to our borrowers throughout the loan process – please call or email us with any questions about this article, market trends in general, or for an updated market valuation of your specific building or development.
We would like to thank the Wall Street Journal and Esther Fung for this real estate property report on January 29th with the information cited above.
