A local real estate agent has revealed that some Chinese investors are selling their properties in Irvine due to lower-than-expected returns on their investments. Irvine, known for its beautiful living environment, excellent school districts, and convenient lifestyle, has long been an ideal city for many Chinese investors and residents. Many believed that investing in Irvine’s real estate would be a safe bet, as the city remains a popular choice for numerous buyers. However, in the last year or two, some Chinese investors have been disappointed with their returns and are opting to sell their properties.
According to Jason Nie, a real estate broker in Irvine, there has been a noticeable trend of Chinese investors selling their homes recently. He mentioned two investors from mainland China who purchased over ten properties in the area but are now struggling to sell even one. Jason clarified that the issue is not with the quality of the homes themselves, but rather that these investors were hoping for an annual return of 20%, a target that current Irvine properties are failing to meet. Additionally, many investors from China do not fully understand the U.S. real estate market, leading them to discover that the costs of maintaining properties here are significantly higher, and the regulations differ from those in China.
Jason further pointed out that the rental market in Irvine is relatively slow at the moment, making these investors cautious when searching for tenants. They are not hesitant to leave properties vacant if necessary; however, some homes have remained empty for a year. When annual property taxes come due, the high holding costs can be surprising and burdensome, given the differences from what they are used to in China. He predicts that in the next two to three years, there may be a wave of Chinese investors selling their homes.
On the other hand, real estate professional Bingxin Li reports that his clients who purchased homes in Irvine are generally satisfied with their returns. He noted that property values have surged over the past two years. However, in terms of rental income, while landlords are experiencing high rents and returns, they also face the risk of tenant issues. He has had to assist several clients in dealing with tenants who fail to pay rent on time.
Agent Amy Liu believes that Irvine’s geographical advantages are attracting many out-of-state renters. She shared the story of a couple who relocated from elsewhere specifically to rent in Irvine while working from home, drawn by the area’s attractive environment. There are also parents bringing children to the U.S. for education, as well as high-level executives moving from overseas.
According to statistics from the real estate information site Redfin, the median home price in Irvine in August was $1.5 million, up 6% compared to the same time last year. Homes are selling on average in 31 days, which is longer than last year’s average of 25 days. In August, there were 174 listings, down from 213 in the same month the previous year.
