It has been highlighted about just how fast the Sothebys brand
has been growing of late. One place certainly worth mentioning that
we decided to blog about concerned the expanding Sothebys
presence in Asia. Not only is Sothebys branching out at an
exponential rate there as well as other areas around the World, but
it is this sector of the global population in China in particular
that is truly picking up steam as it relates to their total
investment in our local Real Estate markets.
It has been frequently reported about the rapid rise of
countries such as China of late, especially with the apparent
downfall of the United States as a long-term economic hegemon.
Despite the fact if you are a believer that the United States can
weather the storm and continue to literally dominate many of the
financial and other markets worldwide, China is nonetheless making
ground. Now, we are seeing this not just in U.S. Bond purchases nor
businesses but it is also becoming true in Real Estate
transactions.
Throughout the past year through June of 2012, those twelve
months accounted for $9 Billion spent on Real Estate in the United
States by Chinese purchasers. This, in turn, represented 11% of the
total foreign spending in this country during that allotted time
period. Looking at all foreign Real Estate investment as a whole,
only Canadians purchased more property during the past year with
$19.8 Billion in purchases.
What is in it for China? Those with the purchasing power to
actually afford the generally more expensive lifestyle in the
United States find it as a unique opportunity to buy. The Real
Estate markets in China are skyrocketing at an alarming rate. Great
if you are a seller, but without a doubt quite risky if you are a
buyer due to such inconsistency. In addition, the secure property
rights as well as the higher quality building standards makes it a
more reasonable investment.
The more recent report regarding this trend for Chinese home
buyers came not long ago in Hollywood, California where a young
couple purchased a $34.5 Million, 36,000 square foot French-style
mansion. Their names are Ning Siqiao and his wife Karen. What about
who are their neighbors you might ponder? None other than A Listers
such as George Clooney, Jennifer Lopez and David Beckham. It seems
as no wonder why a home as such commanded such a sales price. This
nine bedroom home, whose views even overlook Sunset Boulevard, is
outfitted with 24-karat gilded French chandeliers and hand-carved
limestone throughout which all sits high atop of its two acres of
land.
There is some controversy, however, relating to the owners. Both
stated as being entrepreneurs in the press, the seems to be some
doubt as to whether the man, Ning Siqiao, is of political Chinese
descent. Ning, which is not a very common family name in China, is
also the first name of Ning Gaoning, who under the state-owned
Chinese conglomerate COFCO was the Chairman. It is therefore highly
speculated that Ning Siqiao is indeed a member of this family and
is attempting to keep his identity quiet.
Although this seems rather odd and certainly far fetched, there
actually was a very similar incident not too long ago in Australia.
It was here just outside of Sydney where a $32 Million estate was
purchased by another young Chinese couple. Initially, their
aspirations of keeping this headline kept the owners themselves out
of the press, the purchaser was soon found to be none other than
Zeng Wei, the son of Chinas former vice president Zeng
Qinghong.
Regardless of whether Ning Siqiao also hails from such a family,
the most important thing to take from this is that foreign
investors are flocking to the United States more than ever before.
It is thus incredibly important that Gibson Sothebys International
Realty be just as prepared as ever when dealing with clients. We
will continue to meet the varying needs and cultural expectations
that people from all corners of the globe have come to assimilate
with the excellence that is the Sothebys brand.
More Information: Forbes