In 2018 there was an 83% drop in Chinese investment in the U.S, reasons vary from the Chinese government’s restrictions on outbound investments/more strict regulations on the U.S side, causing overseas real estate sales to slow drop drastically in China.
Despite the decrease in overseas investments, a few real estate analysts predict that luxury home sellers should consider targeting other groups of buyers from Latin America & Europe, while focusing on the long-term investment of their properties.
Among China, other top investors for residential real estate in the U.S include Canada, The U.K., India & Mexico – While Canada and the U.K seem to attract more European buyers… Sellers in those regions may want to keep their eyes on these groups of buyers.
Sellers must brace themselves for the possibility of their home being on the market for longer than what’s ideal, despite nationality, international investors seem to be making their decisions with greater deliberation. Location and the type of property should be kept in mind.
The most popular of sales for foreign buyers seem to be boutique apartments, penthouses, prestige homes in the most sought-after suburbs and heritage homes with big surrounding land, as well as newer developments with well-known architects names’ attached. Foreign buyers are also looking for quality from investors, sophisticated architecture, well funded and experienced developers who are behind the project. Property that will generate rental income is also a huge factor.
International investment shrank last year in Canada (namely Toronto & Vancouver), in result of new taxes for foreign buyers. Chinese buyers in particular are seeming to purchase in Montreal instead, due to the affordability and education opportunities. Particularly homes that are furnished or developments that come with luxe amenities like pools & garages which are rather rare in China.
There has also been an “explosion of immigration toward Canada”. Buyers are coming from Switzerland, France, Belgium & French Africa, so Montreal is obviously a great option, while Americans are heading back as well, due to the exchange rate.
Looking for more tips on how to make your home more appealing to foreign buyers? Do not hesitate to give us a call! We have the most knowledgeable staff, ready to guide you through the process of buying & selling!
Sutton Group Realty Systems Inc., Brokerage
416-896-3333 / 905-896-3333