Are Chinese purchasing properties on Oahu?
In Hawaii, Chinese buyers do buy, but still only represent a small part of the market here on Oahu. Chinese real estate investors make up less than fifteen 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 like Waialae Iki- and they’re paying cash.
About ten years ago, 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.”
Over my decades of experience as a Chinese speaking Oahu relator, I have now helped many Chinese buyers purchase homes in the most exclusive neighborhoods - some who have decided to call Hawaii their permanent home and that the Chinese food has improved over the years. No matter what, Chinese home buyers often find Oahu to be a worthwhile investment, with home equity increasing substantially year-over-year.
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, some sales are for condos, 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 is 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 Oahu real estate agents who also speak Chinese, there is an opportunity to serve these homebuyers. If you have any questions on investment properties or second homes on Oahu, please give me a call at 808-351-0628 or send me an email at [email protected].
I look forward to helping you find that dream home away from home.
