International investors have shown very strong interest in Canadian and American properties, this article summarizes some of the trends and investors behavior from Asia.
We talked about why Asian investors are investing overseas. Active Asian investors investing in overseas markets include Chinese, Taiwanese, Hong Kong-Chinese, Koreans and Singaporeans.
Japanese and Singaporean investors consist of a lot of institutional investors, and Korean investors are also active in the top end of properties at moment, recently, Korean Pension Fund had bought a 6-star commercial property in Sydney, Australia for $500 million, and it has bought several commercial properties in Chicago and New York City.
Individual Asian investors are mainly looking at residential properties, but Hong Kong & mainland Chinese investorshave been involved in land developments and project developments in North America for over 20 years now.
Many Asian investors are also interested in the flip & flop strategies whereby they will acquire properties and restore them and on-sell them to other investors – include many Asian immigrants.
This works as Canada & United States remain as the most desired immigration destination followed by Australia. The level of immigration has reached record level in 2011 as more and more Chinese families are looking to move emigrate to USA, Canada and Australia, and the trend is unlikely to slow down for a long time.
The recent influx of mainland Chinese investors into international markets have several interesting trends:
1. Many Chinese investors are led by Chinese property developers – they understand the markets, they understand the real estate industry, they want to continue in this game overseas.
2. Chinese Government is imposing many restrictions on property developments; therefore, Chinese developers must go overseas to continue on their projects.
3. They like multi-family developments (condos, apartments, townhomes, mixed complex). In Canada, for instance, they are also developing several super-Chinese malls as niche markets.
4. They are increasingly expanding into the hotel sectors. In the past, Chinese investors are very active in SE Asia, especially Indonesia, Thailand and Vietnam. In Central America, Taiwanese investors have been active in Puerto Rico, Panama, Belize and some other islands as well.
5. As a sign of prestige – Chinese investors have recently developed new interests in mansions, unique properties, such as penthouse in top-level apartments or castles.
6. There have been several deals done already in terms buying the prestigious chateau and vineyards in Canada & USA, vineyards have been a popular asset acquired by Chinese investors recently; some are buying for investment purpose, others are buying them for personal use.
In our next article – we will also look into different characteristics, strategies and what types of properties Asian investors are interested in. Each community is different, and their expectations are also different.
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