THE DELEON INSIGHT
THE CHANGING DEMAND FOR SILICON VALLEY REAL ESTATE FROM CHINESE BUYERS By Audrey Sun
In recent years, Chinese buyers have represented, and continue to represent, a strong and important part of the Silicon Valley buyer pool. Although certain regulatory, financial, and logistical factors have changed some of the characteristics of these buyers’ focus, there is no denying that it would be a fool’s errand to ignore this important segment of potential bidders. Given that the DeLeon Team is the top marketer of Silicon Valley real estate to the Chinese community, and as someone who was born in China before immigrating to the U.S. to attend school at Valley Christian and U.C. Irvine, I enjoy a great vantage point from which to evaluate some emerging trends. Like many immigrants, I have experienced the American dream and truly appreciate the diversity and welcoming spirit of this great nation. Direct Purchases by People Living in China Until about five years ago, we saw a very strong demand for Silicon Valley real estate from people living in Mainland China. This was due to a confluence of different factors, such as the: 1. Stability of Silicon Valley real estate market; 2. Appeal of great schools;
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3. Overall desirability of this area and its weather; 4. Economic opportunities associated with Silicon Valley’s striving economy; and 5. Restrictions by the Chinese Central Government on the purchase of multiple investment properties in Tier-1 cities in Mainland China. This demand was so strong that Michael and I, along with other members of the DeLeon Listing Team, made multiple trips to China over the past few years to meet with various real estate agents, potential investors, government officials, and buyers. For several years, The DeLeon Team even had an office in Beijing. However, over the past five years, President Xi’s actions have significantly restricted currency migration from China to the United States. More precisely, these measures have resulted in more strenuous enforcement of laws that were already on the books. These factors, paired with the recent pandemic, have resulted in a reduction in direct investment by Chinese nationals living abroad.
