Seattle, Washington has recently seen a large influx of Chinese investors, which has had a notable impact on the economy as well as the local housing market. There are several reasons for this development (including legislation recently passed in Canada), but a primary driving force behind the migration of money towards Seattle is the city’s desirability. Real estate buyers on a global scale have taken notice of Seattle, and the effects of this have only begun to take hold.
While competition has grown and prices have risen as a result of this increased interest, the city continues to present potential investors with a golden opportunity.
Many of these new investors are coming from Canada
Rising costs in Vancouver led to a tax on international buyers, prompting a big change to what was formerly a popular market for Chinese investors. Some foreign real estate buyers were using real estate in Vancouver as an insurance policy to offset uncertainties in their home countries. This led to a considerable impact on the local housing market, as homes soon became less and less affordable due to the number of international investors. The foreign buyer tax was implemented in order to put a stop to this.
Seattle was the next destination for many of these people, for a number of reasons. Chinese buyers can see the advantages of owning property in the area, particularly if they intend to start a new life in the thriving city. Seattle offers strong fundamental qualities they might be seeking out, such as a lack of income tax, a solid economy and public schools. Convenient water access and clean air are also benefits that are not as easy to find in China.
Even without Vancouver’s tax, there are a number of factors that make Seattle an attractive destination
Although Seattle is nowhere near as expensive for investors as Vancouver and the Bay Area cities, it offers similar geographic features and a business economy with a healthy foundation that has the potential to thrive. Relatively favorable taxes and an ever-increasing demand for properties are advantages that help explain why the Wall Street Journal referred to Seattle as the new San Francisco.
Seattle’s median home prices are roughly half of those a buyer would find in San Fransisco and Vancouver. Part of what makes this city such a desirable destination for foreign investors is the fact that even with housing costs that have gone up in recent years, real estate prospects are still considerably more affordable than they are in other popular West Coast cities.
Prices in Seattle may have gone up as a result of Chinese interest, but the good outweighs the bad
The increased competition that many believe will only drive prices higher also carries a benefit for the community, as the rising demand for property can very possibly lead to higher standards of living, better schools and an altogether more desirable place to live. Furthermore, by no means is Seattle out of reach for new investors; there is still a large number of opportunities available, and prices remain much lower than what can be found elsewhere in cities that offer similar advantages.
Seattle’s already strong economy can thrive with the new influx of investors. Although some might believe otherwise, most of the rising housing prices are due to local job growth and a flourishing populace.
Trends seldom develop without good reason. Chinese real estate buyers who’ve been deterred by Vancouver’s foreign buyer tax are seeking new venues for their investments, and many of them are choosing Seattle. This collective decision speaks volumes, especially when one considers that this influx of investors isn’t happening simply because of Seattle’s location on the West Coast. The city’s costs are rising, but they are still much cheaper than those found with high-profile alternatives like San Fransisco and Vancouver. Taxes are reasonable, the city is flourishing and the economy has a stable core that is brimming with potential. In order words, Seattle is a popular destination for homebuyers. And for good reason.
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