The Wall Street Journal interviews Angela Wong, a Sotheby’s real estate agent in Los Angeles. Her answers are instructive for our market. Not only do we have many Chinese buyers, but they are also often choosing among three major West Coast real estate markets: the Bay Area, Los Angeles and Seattle. Watch the WSJ video interview.
Who is your typical Chinese buyer today?
Entrepreneurs, many from Shanghai and Beijing.
How much is business picking up?
Individual buyers mostly bring their families here because of the school. Group buyers interested in buying downtown projects for commercial properties.
For individuals, what types of properties and which cities are most popular for investment?
Three areas in Los Angeles: San Marino (the current Chinese Beverly Hills area iwth schools ranked #1 in Los Angeles). The second group are looking for much newer homes in gated communities like Calabasas, very famous for the school. School is very important for them. Third, some are venturing into the Beverly Hills area now.
How are they transacting?
95% are all cash buyers. The other 5% are loans. HSBC bank has been doing a very aggressive foreigner program, offering loans up to $3M. More Chinese are being educated in taking loans now.
What price range has Sotheby’s sold to Chinese buyers?
It ranges from $1.5 to $7 or $8M.
How much is investment increasing?
We have a good increase of 15% compared with last year.
