Property agents in the U.S. and Australia report similar findings. "Kids' education is by and large the main reason why young Chinese parents continue to buy properties in the U.S.," said Tina Dai, a Shanghai native who turned a real estate agent with JC Pacific Capital Inc in Los Angeles after relocating to the U.S. in 2013.
Dai herself bought a home so her daughter could secure admission into a well-known public school in her LA neighborhood.
Jamie Mi, head of international business at Kay& Burton, a high-end real estate agency in Melbourne, said: "China is Australia's biggest source of overseas students. Chinese parents provide strong support for demand for home sales Down Under."
Apartments adjacent to high-quality public schools conventionally carry a higher price tag in China. But Chinese parents are willing to pay even more if necessary for similar conveniences in other countries. That's because overseas residential properties can also generate steady returns on realty investment, according to industry insiders.
Prospective homebuyers review details of a 181-villa U.S. project located near a school during a real estate expo in Beijing. Such projects are routinely marketed in China. (Photo by Liu Changqing / for China Daily)
At Diamond Bar, an LA district where Dai's little daughter is about to enroll into Evergreen Elementary School, a reputable public school, a two-bedroom apartment commands a price in the range of $400,000 and $500,000.
That is still less than $709,000, or 4.9 million yuan, that a 90-square meter, two-bedroom flat would have cost in April at premium residential areas in Shanghai, where new homes sell at an average price of 54,838 yuan per square meter, according to data from Centaline Shanghai, a realty agency.
"Home prices in Shanghai are broadly comparable with those in New York and Tokyo," said Lu Wenxi, a researcher with Centaline Shanghai.
Among 35 key global cities in terms of home prices, China's Hong Kong, Shanghai, Shenzhen and Beijing were rated first, third, fifth, and ninth most expensive cities respectively by CBRE.
