Posts Tagged ‘Chinese investors’

The Luxury Insider: East Meets West

By Alain Pinel | May 9th, 2012 0 Comments

The Chinese are coming!…Or should I say a lot more are coming, and contrary to those who came over to the US in the 19th century, the new wave of Chinese immigrants are coming with lots of money and are eager to spend it. They are changing the real estate landscape and setting new real estate values in many states and regions.

The first Chinese immigrants, laborers for the most part, arrived in the mid 1800’s, “escaping” from the poor Southern provinces of the old country to look for job opportunities on our West Coast.  Life, for a while, was hardly better than the one they left behind. The attractive mirage that the Gold Rush represented absorbed most of them. From mining for gold, they eventually gravitated to railroad labor. They became low wage workers for a booming industry busy with the construction of the Transcontinental Railroad.

According to Wikipedia, the Chinese accounted for over a tenth of the population of California in 1880. Today, the percentage is down to roughly 3.5% (about 1,300,000), but we are not talking about the same curriculum. Today’s Chinese Americans represent a huge economic power and their appetite for real estate will not be satisfied anytime soon. They want a lot and can afford the best.

This is especially true in California’s Silicon Valley, home of the brightest and most ambitious new Chinese Americans. Many of them, young top guns in the fields of engineering & sciences, came in the mid 1980’s, screened with a fine comb by their government which paid dearly for their scholarships in leading universities. One of them was Minhua Jin, now a star real estate agent for Intero Real Estate in Cupertino. She routinely works with Chinese American clients.

Minhua explained to me that unlike most of the “typical” buyers and sellers, the Chinese buy but they very rarely sell, if ever.  They keep what they buy and, as long as they can, they buy more of the same. There are plenty of reasons for that:

  • New laws were enacted in Mainland China a few years ago limiting to 4 the number of residential units any person could buy. Now that money is flowing over there, there is only so much art or items of value people can put their hands on to protect their wealth and build equity.
  • In the main country, they cannot buy the land on which the real estate is built. It belongs to the government, which is leasing the pad for 70 years. Considering that there is no clue as to what may happen when that lease expires, a lot of homeowners and investors are obviously unsecured about their investment in China.
  • Government policies are changing often, further complicating the process, the pertinence of the investment and therefore reducing the appetite for local real estate.
  • Education is a very big deal in China these days, especially business & technology rather than just academics that they do well at home. Whenever possible, well to do families send their kids to the best schools in the US or Europe. Some go back; some stay.
  • Overall, the Chinese are not rich people. Perhaps only 1% of the population can dream of ever buying a home (or many) in the US…But you know what? 1% of 1.4Billion people is a lot of people, a lot of qualified and determined buyers!
  • Chinese real estate in key cities multiplied about twenty times in value over the last 15 years or so; those who bought made enough money to buy anything, anywhere, whether in San Francisco, or New York, or Paris, or London.
  • The Chinese currency is going up while the dollar is going the other way. Buying a multi-million dollar home here is getting to be very affordable.
  • The Chinese, as an old & dear tradition, believe in real estate. They aspire to own their home. You might call it the “Chinese Dream”.

It is clear that the impact of Chinese Americans and Mainland Chinese on US real estate is rapidly changing the rules of the game. It can only accelerate with a growing number of buyers and their growing purchase power. Chinese Americans are part of the new technologies, part of the new wealth. In the Silicon Valley, for example, 1 out of 5 high tech start ups are led by people from Chinese descent, according to a study done by Annalee Saxenian, a UC Berkeley professor.

Knowing how to work with the Chinese is no longer an interesting option for real estate agents, from one coast to the next. It is simply a mathematical necessity.

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Intero Hong Kong Appoints U.S. Intero Real Estate Services Agents to Assist Investors Visiting Silicon Valley

By Teressa Francis | September 9th, 2011 0 Comments

Agents will attract investors from China and across the Pacific region to U.S. properties

Cupertino, California – (Sept 9, 2011) – Intero Hong Kong has appointed three Realtors from Intero Real Estate Services, corporately owned offices based out of Silicon Valley to be the U.S. contacts for investors from Hong Kong. Guru Toor from Intero Cupertino, Lisa Wendl, and Renuka Ahuja from Intero Los Altos, all are part of the international team and serve as Directors of Marketing and Sales.

“Intero was born in Silicon Valley, which is a crossroads of innovation for the entire Pacific Rim,” said Executive Vice President & Managing Officer of Intero Hong Kong John Thompson. “Guru, Lisa and Renuka’s primary mission is to provide one-stop services for mainland Chinese clients to fulfill their quests and purchase their new homes or investments in the United States.”

A number of Chinese investors are already waiting to take advantage of opportunities in U.S. and Bay Area real estate markets, particularly in California, where many Asians choose to buy given its geographical proximity to Asia, established Chinese community, favorable climate, and economic, educational and work opportunities. The Asia-Pacific region’s economic growth, high real estate prices and rising currencies relative to the U.S. dollar have created a lot of interest in U.S. properties

With Guru, Lisa and Renuka’s business connections and fundamental understanding of what the local Chinese buyers want, together they can attract investors from Hong Kong and across the Pacific region to U.S. properties. They’ll be working in capacity of business director in the areas of sales, marketing and business development. In addition they’ll be working in local marketing, sales, and business development for Far East clients

Guru Toor focuses on real estate investment. With a graduate degree in Management and a Masters in Strategies and Planning, he has a long experience in management and has a desire and penchant for working with international buyers. Currently he is working on a number of projects with international clients.

Lisa Wendel has 20 years experience with real estate investment and financing. She obtained an MBA in Finance from University of Illinois at Chicago and a BS in Economics from Fudan University in Shanghai. Lisa also works with several major U.S. based developers to promote developments in Shanghai.

With roots and past experience in the Silicon Valley tech industry, Renuka Ahuja brings years of experience in buying and selling Real Estate in the Bay area as well as in the luxury home developments. She takes an integrated approach and works diligently hands on selling and buying Real Estate for her clients.

Kenny Lo, General Manager of Intero Hong Kong adds, “I welcome such a high caliber group to join the Intero Hong Kong team. I am very pleased to have the opportunity to work with them closely on projects of Far East origin going forward.”

The continued growth of Asia’s economies, high asset prices, particularly in real estate, and rising currencies relative to the U.S. dollar, have made Asians significant buyers of U.S. real estate. According to The 2011 NAR Profile of International Home Buying Activity, the international market for U.S. residential property approaches $82 billion on an annual basis, of which more than $7 billion comes directly from China. This upward trend is likely to continue this year.

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Intero Real Estate Services Appoints Charmaine Wang to Director of Sales & Marketing, APAC of Intero Hong Kong

By Teressa Francis | July 7th, 2011 0 Comments

Wang will help attract investors from China and across the Pacific region to U.S. properties

Cupertino, California – (July 7, 2011) – Intero Real Estate Services, Inc. has appointed Charmaine Wang to Director of Sales and Marketing, APAC of Intero Hong Kong.

Under the leadership of John Thompson, Executive Vice President & Managing Officer of Intero Hong Kong, Charmaine Wang will bring investors from China and across the Pacific region to U.S. properties.

In addition to her success as a top 5% agent with Intero, Charmaine Wang had a successful career in sales and marketing in various Silicon Valley companies. Ms. Wang was born and raised in Shanghai. She received her BSEE and MBA from Santa Clara University.

After joining Intero, Charmaine serviced Bay Area clients as well as many investors from China with the highest standard. Her deep understanding of Chinese culture and extensive hands-on U.S. real estate practice makes her a welcome figure in representing China investors.

The continued growth of Asia’s economies, high asset prices, particularly in real estate, and rising currencies relative to the US dollar, have made Asians significant buyers of US real estate. According to The 2011 NAR Profile of International Home Buying Activity, the international market for U.S. residential property approaches $82 billion on an annual basis, of which more than $7 billion comes directly from China.

The Intero brand’s strength in the US, particularly in California, where many Asians choose to buy given its geographical proximity to Asia, established Chinese community, favorable climate, and economic, educational and work opportunities, make it the ideal partner to provide quality real estate investment opportunities to China investors.

“Intero was born in Silicon Valley, which is a crossroads of innovation for the entire Pacific Rim,” said Executive Vice President & Managing Officer of Intero Hong Kong John Thompson. “This transition is a natural move for us and one we are uniquely equipped to execute successfully.”

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Intero Hong Kong collaborates with Elijah Investment Management Consulting Co, Ltd.

By Teressa Francis | June 30th, 2011 0 Comments

Leading brokerage company and investment consulting firm bring U.S. properties to interested Chinese investors

Cupertino, California – (June 30, 2011) – Intero Hong Kong of Intero International Franchise Services, LLC, announced that is has expanded its network in the Asia-Pacific region through a collaboration with Elijah Investment Management Consulting (Shanghai) Co, Ltd, whose primary mission is to provide one-stop services for mainland Chinese clients to fulfill their quests to immigrate, settle down with schools (for families with school-age children), and purchase their new homes in the United States, Canada, United Kingdom, and other countries.

Together with Elijah Investment Management Consulting Co, Ltd., Intero Hong Kong General Manager, Kenny Lo will liaison for Chinese investors interested in acquiring U.S. investment properties. Lo, an Intero real estate agent, has incredible knowledge of both markets and cultures. With this he is a great resource for investors, bridging the Pacific Divide.

“I’m very pleased to have the honor and opportunity to work closely with Elijah Investment and its managing director Shirley Liu in particular. With Elijah Investment’s business connections and fundamental understanding of what the local Chinese buyers want, together we can attract investors from Hong Kong and across the Pacific region to U.S. properties,” says Kenny Lo, General Manager of Intero Hong Kong. “In partnership with an internationally recognized financial institution providing loans for overseas buyers, we just successfully completed inaugural live property seminars in Shanghai and Nanjing promoting high-end properties in the U.S. As of today, we’ve already scheduled some attendees for property tours in California starting this summer. I look forward to close the initial deals through this Elijah Investment collaboration, while anticipating our business momentum to grow.”

“This opportunity couldn’t have come at a better time,” Robert Moles, chairman of Intero adds. “A number of Chinese investors are already waiting to take advantage of opportunities in U.S. and Bay Area real estate markets in particular. The Asia-Pacific region’s economic growth, high real estate prices and rising currencies relative to the U.S. dollar have created a lot of interest in U.S. properties.”

“This collaboration allows us to seek opportunities to expand abroad and represents the Intero commitment to solidifying a global brand presence, a necessary element to thrive and innovate in a real estate business,” concludes Intero Real Estate Services, Inc. President and CEO, Gino Blefari.

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