First, it was China's upper class that were buying properties in the US, despite urging from the central government to keep money circulating domestically. Now, it's the middle class' turn. China's middle-class citizens, according to CNBC, have now been ranking among the top foreign buyers that have interests in prime property in the US, based on National Association of Realtors data.
The rankings used were based on unit data as well as 'dollar volume' of housing bought. As prices are going lower in US housing, China's middle class have been going after them. Lower-priced houses are bought using mortgages, among other methods. Favorite locations have also been identified as California, Florida, Georgia, and Texas.
It is interesting to note that the Chinese are still wary about some US products, namely consumer electronics and the like. With the dispute between the US and China, it will be a sight to see whether this will affect their buying habits. For the most part, Chinese buyers seem largely unaffected.
There's a light at the end of the tunnel, however. As Chinese buyers are lining up for lower-priced housing, the US might actually begin to open up more than it already had. The US is currently in a crisis, with the government 'shutting down' to mitigate this crisis. US president Donald Trump will be hard-pressed to avoid dealing with two issues, so he might choose to end the US-China trade spat rather than keep it before the government shutdown.
The trend suggests an end to the confrontation. Only a month ago, president Trump had set a '90-day' timer on when negotiations can resume with Beijing. He decided on resuming the dispute with China, but the cessation of hostilities suggests that he's open to a conclusion of disputes before dealing with the issues of the shutdown, Washington Post stated.
Chinese buying habits had been observed to be leaning toward bidding rather than trading. They also appear to be able to have enough maturity to separate 'political turmoil and real estate investment'-hence, the ability to buy US property even when the US government is threatening them with a currently standing tariff.
Chinese middle-class citizens aren't only buying properties as investments. It is also the ticket to a supposedly better life in the US. A few families already have sons and daughters who are currently studying or working in the US.
