W
ealthy Chinese buyers are shifting their focus away from the United States and towards other real estate markets, such as Australia, Singapore, and the UK. According to property agents, this shift is driven by rising geopolitical tensions between Washington and Beijing, which have made the US a less attractive destination for foreign investment.

    In 2024, Chinese demand for homes priced above $5 million shifted from the US to Thailand, Australia, and Canada, according to data from Juwai IQI. This trend reflects the growing unease among Chinese investors about investing in US properties due to increased scrutiny of property deals and protectionism.

    The US existing home sales fell 5.9% in March, with demand sapped by concerns over an economic slowdown caused by tariffs. Meanwhile, Chinese investors spent $7.5 billion on US homes in the year leading up to March 2024, a decline of more than 40% from the previous year.

    Some property agents report that Chinese homebuyers are now looking at markets like Australia and Singapore as alternatives. Peter Li, general manager of Plus Agency in Australia, said that one buyer abandoned plans to invest in US real estate due to concerns about chaos and uncertainty in America.

    In Singapore, Chinese buyers acquired 301 residential units in the first quarter, a 42% increase from the same period last year. Alan Cheong, executive director at Savills Singapore, noted that there has been an uptick in inquiries from Chinese companies regarding industrial premises, which could lead to increased demand for private homes.

    Singapore has become the most preferred relocation site for companies and ranked third in terms of relocation of wealthy individuals, according to a study by Savills. The city-state offers high-net-worth individuals and families a stable environment, tax efficiency, and world-class education and healthcare.

    The UK is also seeing interest from Chinese investors, who are drawn to its excellent universities, cultural scene, and career opportunities. David Johnson, managing director at Inhous, said that the US property market has become too volatile for some Chinese buyers, while the UK remains a popular destination due to its stability and global connectivity.

    Rising property taxes in the US have also become a concern for Chinese investors, with some opting to relocate their families to London. Amber Zhao, head of Asia-Pacific at Chestertons, noted that one client sold his luxury home in California and bought a £4.2 million flat in London due to concerns about rising property taxes.

    While the US offers a golden visa programme through its EB-5 initiative, this may not be enough to offset the growing unease among Chinese investors about investing in US properties.