Chinese Investment in Oahu - a Natural Destination

In Hawaii you hear it every day, “the Chinese are coming…with bags of money to buy up our real estate!”

Well, the reality is, Chinese buyers do buy, but still only represent an small part of the market here on Oahu, In 2012 Chinese investors made up five percent of all of Oahu’s international investors. But oftentimes when the Chinese do buy, they are selecting trophy properties in Kahala and along the ridges of East Honolulu - and they’re paying cash.

Following an Internet lead from China, I had a family that flew in specifically to purchase property. Within days, they had selected a million dollar-plus home in Kahala to use as a second home – of sorts. They paid for the property and then bought a car and other items for the home… all with cash. During their first year of ownership, the family returned to Hawaii only twice and eventually decided to sell and buy in Los Angeles where "the Chinese food was better.”

This is not the only example of Chinese families and groups with money. Talk to any Chinese-speaking agent at real estate brokerages and they will relate similar stories. Of course, many of the sales are for less than a million dollars, but again the buyers pay cash.

How and why is this happening? All you need to do is look at the size of China’s population and the country’s rate of growth over the last 10 years. It was only a matter of time before the rich started looking to park their spare cash overseas. And now we see the educated middle class, entrepreneurs and salaried managers buying into the market. This, in spite of the fact that China still has limits on the amount of money their citizens can take out of the country. 

I don't see this trend slowing down anytime soon. Hawaii is a natural destination for Chinese buyers because of its great beauty and weather, not to mention its multi-ethnic composition. The same can be said for Vancouver, British Columbia in Canada and Southern California but because those markets are so much larger than ours, the impact isn't as noticeable.

So, for those of you wishing to get on the bandwagon I suggest a quick visit to the Internet to purchase the Rosetta Stone Conversational Mandarin. Even if you don't become fluent in the language, the ability to make these new visitors feel at home will make all the difference in the world. 

If you have any questions on investment properties or second homes on Oahu, please give me a call or send me an email. I look forward to helping you find that dream home away from home.

Elaine Chow RA, GRI ePro

Prudential Locations, Diamond Head 
614 Kapahulu Avenue, Suite 200 
Honolulu  HI   96815
Office: (808) 735-4200 
Office Fax: (808) 732-5096
Direct Line: (808) 738-3181
Mobile: (808) 351-0628

Website

Languages Spoken:English, Mandarin, Taiwanese, Chinese

Email: elaine.chow@pruhawaii.com