Gone are the days when Chinese tourists dragged home large suitcases of Levis, Dodger caps and faux Academy Award statues after a tour of the United States. It seems that nowadays the most prominent memento of a U.S. tour is a folder with the paperwork from a recent home purchase. Yes, caravans of cash-carrying Chinese homebuyers and investors have been winding through U.S. streets in recent months, perusing foreclosures and other bargain properties to call home.
The combination of the American real estate market climate and new U.S. visa rules for Chinese travelers, along with looser Chinese foreign investment policies have spurred the onslaught of Chinese home-buying tours stateside for those interested in both homes and apartment buildings. Southern California home buying is no new idea to the overseas Chinese on the whole, as they have been buying properties for years. But the evolution of this interest is that instead of a quiet purchase, discussed only among good friends, it is now being done openly, and in large groups who travel in droves with the mission of buying in common. Although this wave of Chinese buyers is not the perfect solution to California's housing market blues, it will undeniably perk up certain popular areas within the Chinese community such as the UC Riverside area and the San Gabriel Valley. Brokers and agents are welcoming the tours with open arms but must keep in mind the buying trends of the Chinese population in California: newer homes in high-achieving school districts, attributes that demand higher prices and may not be perceived as bargains.
A definite asset in the era of the credit crunch, many Chinese buyers come prepared to pay in cash, as has been seen in the purchase of several mansions and many condos in the Arcadia area. Once the home is secure, buyers can either begin the immigration process or leave their college-aged children to study and prosper. An estimated 391,000 millionaire households in mainland China last year replaced the previous year's data reported at 310,000, a nearly 30% increase. Alhambra realtors are preparing themselves for several groups from China in early 2009, anticipating about 200 people. Some are even providing hotel accommodations and tour buses. Now, due to financial challenges in the United States, ordinary people in China are able to make a large purchase overseas and either begin a new life, open the door to Western education for their families, or just make a sizeable investment. In any case, so is born a niche market!