Even with the recent market crash, Chinese investors are buying local real estate at never-before-seen levels, buying in some of New York City’s most iconic buildings at prices that New Yorker’s aren’t willing to pay. According to data from Real Capital Analytics, the Chinese have spent more than $3.8 billion on Manhattan real estate this year alone producing a more than threefold increase over what they spent in all of 2014.
The massive increase in China’s wealth has left many looking for ways to invest. Previous real estate hot-spots such as London and Hong Kong have inched up in price, lowering potential returns, making the New York market even more attractive. Additionally, the Chinese government has gradually loosened restrictions on investing overseas due to its eagerness to turn the Yuan into a global currency.
Shing Wah Yeung of Yeung Development, a company that’s invested in both New York and China, commented, “Everyone feels like a major city such as New York is a safe haven for their money, but you never know where Manhattan could be in a couple of years. You never see a downturn until it comes.”