Among the Chinese millionaires that are worth more than $1.5 million, about half are considering moving abroad. This wealth is likely to continue to flow into U.S. homes and buildings, helping with demand and prices in certain real estate markets.
The U.S. remains the most popular destination of the wealthy Chinese moving their families and fortunes abroad with Canada ranking second, overtaking the U.K., which is now third and Australia fourth.
The favourite city for these people in the U.S. is Los Angeles, while Seattle ranks second followed by San Franciso and New York.
Education and pollution are driving China's rich to emigrate. If China can solve these issues then the primary incentive to move will be taken away.
But the fear of a falling Chinese currency is also driving many of the rich abroad. About 84% of these millionaires are concerned about the devaluation of the yuan, up from only 50% last year.
So far, Trumps administration's restrictions on immigration have not touched the EB-5 program, a favourite of the wealthy Chinese that allows them a path to citizenship in the U.S. in exchange for an investment in property of $500,000, but waiting times are the biggest hindrance to overseas immigration. How is this going to effect our market? Are we likely to see much change?