(function() { var po = document.createElement("script"); po.type = "text/javascript"; po.async = true; po.src = "https://apis.google.com/js/plusone.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(po, s); })(); Everybody reads about the large supply of Chinese buyers who are buying homes here along the Peninsula.  There are many agents, one prominent one who we all know and now has a plane to fly his Chinese buyers around, who target the Chinese buyers very heavily.  Buy, why are there so many Chinese buyers and […]" /> Kurtz Real Estate Group » Blog Archive » Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

Home » Real Estate News »Tips and Information » Currently Reading:

Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

May 22, 2014 Real Estate News, Tips and Information No Comments
post thumbnail

Everybody reads about the large supply of Chinese buyers who are buying homes here along the Peninsula.  There are many agents, one prominent one who we all know and now has a plane to fly his Chinese buyers around, who target the Chinese buyers very heavily.  Buy, why are there so many Chinese buyers and why are they buying here?

We all marvel at the prices being paid and the recent appreciation of 30% per year for the past couple years.  For those of us who live along the Peninsula, you may be surprised to know that real estate in Palo Alto, Atherton and Menlo Park may be a bargain when compared with other international locales. Heck, we aren’t even as expensive as New York.  Who would have thought 10 years ago that an investor from Shanghai might find a Manhattan penthouse affordable? Of the 10 most expensive cities in the world, New York is the only one from the U.S., said a recent report from England-based real estate consultancy Knight Frank and researcher WealthInsight. Monaco, Hong Kong, London, Singapore and Geneva all outranked New York. Sydney, Paris, Moscow and Shanghai rounded out the list. San Francisco, Palo Alto and Atherton, not even on the list.

In Hong Kong, which saw double-digit real estate price increases from 2009 to 2012, the average luxury home was valued at around $11,000 per square foot, the global real estate firm Savills said in a 2012 report. Yes, $11,000 per square foot! London, with its own booming real estate market, averaged $5,300 per square foot, while New York checked in at $4,100. Atherton and Palo Alto generally sells for $1,500  to $2,000 per square foot, quite a deal compared to the big guys.

For the 12 months ended in February, 788 homes worth more than $10 million each were sold in the U.S., according to real estate website Zillow. Slightly more than half were in the Los Angeles and New York areas. San Francisco, south Florida and Colorado ski resorts Aspen and Vail also saw some of the most-expensive transactions. Chinese Buyers, in particular, Chinese homebuyers increasingly are buying up high-end property in the U.S., Realtors said. China’s strong economic growth has generated dozens of billionaires and thousands of millionaires in recent years. They are attracted to America’s stronger property rights and a relatively stable political and economic climate, according to the National Association of Realtors.

So, why are so many Chinese buyers scooping up luxury properties? Because they are rich and prices here are a deal and they have property rights that might be hard to come by in their own country.  Hard to blame them.

With the worldwide economy getting better, I can’t see much of a slowdown to the pace of buying from our overseas friends.  Gary Kurtz of Alain Pinel in Menlo Park has Chinese buyers that he has never met but converse with on a regular basis and are looking for investment homes here in the Atherton area.  I find lots of Atherton and Palo Alto off market homes and I know they will make a relatively quick decision and buy without seeing as they trust my word and insight into the market.  It seems to be a win-win situation for sellers, Chinese buyers, agents and all in the luxury real estate industry.

 

Facebook Twitter Email Pinterest Digg Stumbleupon

Comment on this Article:







My Contact Information

Gary Kurtz
949.565.5201
gkurtz@homgroup.com
BRE# 01710776

Kathy Kurtz
714.394.2676
kathyk213@aol.com
BRE# 01876966

HOM Sotheby's International Realty
1200 Newport Center Drive, # 100
Newport Beach, CA 92660

949.565.5201 (cell)
949.478.7769 (office)
650.796.5507 (Silicon Valley #)

Contact me now with any questions:
gkurtz@homgroup.com

Kurtz Real Estate Group




Follow Me On Twitter

Live, up to the minute tweets during broker tour and other live real estate events, plus news and information.


Searching For A Home?


Search All Listings Here

If you are in the market for a home anywhere in Southern or Northern California? Search our MLS Listings to find your dream home.

Then when you are ready to get more information or schedule a tour of your favorite homes, call me and I'll take care of the rest.

Real Estate Insider Video Show

Alain Pinel Realtors Silicon Valley

April 3, 2013

Alain Pinel Realtors Silicon Valley

We at Alain Pinel Realtors have been releasing high quality videos that give buyers a feel for different areas. Today, we released the Silicon Valley video. Take a look. If you are looking for luxury real estate all along the Peninsula and Silicon Valley in areas such as Los Altos, Saratoga, Monte Sereno, Palo Alto, […]

Palo Alto Real Estate Update

February 3, 2012

Palo Alto Real Estate Update

The numbers are strong for real estate in Palo Alto with this month’s sales figures.  Watch the video to see all key sales numbers for the month of January 2012 compared to January 2011.

Menlo Park Monthly Real Estate Sales Figures for October 2011

November 5, 2011

Menlo Park Monthly Real Estate Sales Figures for October 2011

The average sales price of a home in Menlo Park fell 7.8% for the month of October 2011 compared to October 2010.  The total number of sales for both periods were similar, which is good news, but the home prices were a little lower than expected.  The surprise number is that the average price per […]

Timely News

Pools and Waterfalls of the Wealthy

August 6, 2015

Pools and Waterfalls of the Wealthy

We all love to see how the wealthy spend their money.  Jets, fast cars, homes….but how about their pools and waterfalls?  This is even more fun to see as there is a big water shortage here in California, so it’s an even bigger status symbol than before as only the very wealthy can afford the […]

Off Market Listing in Pelican Hill – $12,500, 000

August 1, 2015

Off Market Listing in Pelican Hill – $12,500, 000

There is a new off market listing in Pelican Hill area of Newport Beach that is sure to get your mouth watering.  The home is 9200 square feet on a 22k sf lot with incredible views.  We have more photos and information, but the asking price is $12,500,000.  If you are a buyer and interested […]

Southern California vs Silicon Valley in battle for tech supremacy

July 27, 2015

Southern California vs Silicon Valley in battle for tech supremacy

Having worked in Silcon Valley for years and also being a native Southern Californian has me with my heart in two places.  So, when I see comparisons of SoCal vs Norcal and especially in the tech world, I get excited to see more movement down to Southern California as tech/startup world is very exciting. This […]

Prices Still Rising In Orange County

June 30, 2015

Prices Still Rising In Orange County

Prices continue to show gains for the areas of Newport Beach, Corona Del Mar, Newport Coast and Laguna Beach.  Most areas have surpassed their peak prices that occurred in around 2007.  Will prices continue to rise?  It seems the high end luxury homes have slowed a bit but the inventory still is at low levels. […]

Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

May 22, 2014

Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

Everybody reads about the large supply of Chinese buyers who are buying homes here along the Peninsula.  There are many agents, one prominent one who we all know and now has a plane to fly his Chinese buyers around, who target the Chinese buyers very heavily.  Buy, why are there so many Chinese buyers and […]