Dropping property prices and the depreciation of foreign currency are fueling Chinese ambitions to buy homes overseas.
Vincent Mo, chairman of SouFun, the country’s largest real estate and home-furnishing website said, ‘We never expected so many people signing up to join our house-buying trip to the US in mid-January.’
A few days after SouFun launched the plan, over 300 Chinese have registered for the trip, far exceeding the quota of 40 people.
These prospective buyers mainly target properties valued from $300,000 to $500,000. About 60% are property professionals who would like to investigate the US real estate sector and make investments accordingly. But a big number are looking for homes for their children.
Two types of US properties will interest the buyers, Mo said.
The first type is the home that has been taken back by banks and has entered into the legal process. The prices of such places are usually low.
The second type, which boasts access to good schools and community equipment, could see a price rebound soon if the economy warms up.
Statistics from the US Mortgage Bankers’ Association show that 1.35 million homes were subject to foreclosure in the third quarter.
Source: China Daily