Blog Post

(Translated) 

Although the unemployment rate is still high with more than 9% in America, the IndustryInsider noted the time for investment in luxury properties in America could not be more opportune than now as the homes are available at a significant discount. While the market has showed signs of improvement, the discounts will not last forever.

Recently, a top agent with Coldwell Banker Previews International, Sally Forster Jones,embarked on her first China business trip. Sally Forster Jones is widely considered an authority on the U.S. real estate luxury market and she has been featured as an expert in leading U.S. media including The Wall Street Journal, Forbes as well as Bloomberg etc. She made U.S. real estate headlines this year when she co-brokered the highest listed U.S. property in history at US$150 million - the Spelling Manor.

According to her, the volume of properties for sale have decreased by 15% in September compared with the same period last year. While the total number of buyersincreased 26%, and as such the relationship between supply and demand of properties is changing. Demand is expected to outstrip supply.

This was the first time for Ms. Jones to meet with industry insiders and investors in Beijing, China. She highlighted during the seminar that discounted U.S. real estate prices coupled with the weakening of the U.S. dollar has led to a surge in interest in purchasing U.S. luxury property from the Asian region in general, and from the Chinese market in particular.

Commenting on her business trip to meet with industry insiders and investors in China Sally Forster Jones said: "with China's increasing accumulation of wealth symbolized by China's second placed ranking in the Forbes billion dollar list after the United States, I have personally experienced a surge in interest in super luxury homes, US$20 million and above, from China in particular, and Asia in general. The time for investment in luxury properties in the Los Angeles area could not be more opportune than now as the homes are available at a significant discount. We are witnessing an improvement in the market however, so these discounts will not last forever, a message that potential Chinese investors I am meeting with appreciate."

Ms. Jones's trip to China has mainly focused on the promotion of real estate in the Los Angeles area. According to her, the underlying pull factors for luxury property investment in area include: 1) prices in the Los Angeles real estate market are down; 2) luxury homes in Los Angeles are currently a bargain compared to many other international cities where prices have skyrocketed; 3) a weak dollar makes investing in the United State very affordable currently; 4) top rated public and private schools etc. She further stressed that in the Los Angeles area, her experience has been that 75 percent of the people looking at "super luxury homes" for US$20 million or more are now coming from countries such as China, Indonesia, Korea and Russia.