China’s leaders are allowing their population a market economy but not political freedoms. As a result, some Chinese are getting rich, and then fleeing with their money to the U.S., Canada, and Australia. This isn’t just a Hong Kong phenomenon; they’re coming from the entire country. And with Seattle their #1 U.S. destination city, Chinese expatriates now constitute a large share of Seattle’s upscale housing market. With massive real estate developments happening within the U.S., Canada, and Australia from the likes of community developers such as the Balcon Group developing communities in Australian cities, it’s no wonder why the rich Chinese choose to be a part of new and upcoming developments, perhaps as investments or as homes.
“Wealthy Chinese have become far and away the biggest foreign buyers of real estate in Seattle in recent years, accounting for up to one-third of $1-million-plus homes sold in certain areas, brokers say. Seattle real estate agents are hiring Mandarin speakers and even opening offices in Beijing. Builders are designing much of their new construction for Chinese buyers.”
http://www.nytimes.com/2014/09/21/business/in-suburban-seattle-new-nests-for-chinas-rich.html?_r=0
This is unlikely to have much impact on middle-class housing or apartment rents, because they’re simply not in those markets. Most of this activity is concentrated in Medina and West Bellevue. But in those suburbs, they’re pushing up mansion prices, and causing more mansions to be built. And,
“The boom may be just starting. A survey by the Hurun Report, a China-based wealth research firm, found that 64 percent of China’s millionaires have emigrated or plan to emigrate in coming years.”
Maybe we should all learn to speak Mandarin?