Chinese Now Top Foreign Buyers in Manhattan Property Market

Chinese billionaire Zhang Xin last year paid $26 million for a Manhattan townhouse also sought by Brad Pitt. (Photo credit: Wikipedia)

The growing economic power of China's consumers was proven again last week when an independent poll of Manhattan real estate brokers found that Chinese are now the number one foreign buyers of pricey New York City property.

The survey by Reuters found that for the first time ever, Chinese had taken over the top spot in terms of both volume and value of sales, after having displaced Russian buyers.

And compared to where they have been buying, even some of America's most expensive homes look affordable.

According to the Prime International Residential Index published by real estate consultancy Knight Frank, luxury homes in Manhattan sell for between $2,100 to $2,500 per square foot, while in Hong Kong, which had its own mainland invasion of the property market over the last several years, high-end homes go for $4,100 to $5,000 per square foot.

China's ascent to the top of the Manhattan real estate world has been helped by the sudden departure from the market of Russian buyers, who have made themselves scarce since economic sanction were put in place against Russia following the stealth invasion of the Crimea.

According to one agent interviewed by Reuters, Chinese buyers grew to 28.5 percent of her business in the first quarter of 2014, up from 19 percent during 2013.

Selling $13 Million in Homes On WeChat

Earlier this month, Manhattan-based broker and reality TV star Ryan Serhant declared that he had sold two New York City homes worth a combined $13 million to a Chinese client over Tencent's popular WeChat mobile messaging app.

According to a statement from the broker, his team received an inquiry via WeChat (which is similar to WeChat) from an investor in China who was interested in buying a home in the swanky Baccarat Hotels & Residences on New York's West 53rd Street.

And Serhant apparently replied with just the right combination of smileys, because the interested party agreed to buy two units at the Baccarat - a $10 million three-bedroom and a $3 million one-bedroom - without even coming to New York.

Beating Out Brad Pitt to Buy Town Houses

Even some of America's biggest celebrities are finding it hard to compete with cashed-up Chinese buyers. Last year Zhang Xin, the high profile CEO of Beijing-based real estate developer SOHO China, was the winning bidder for a $26 million Manhattan mansion which had also been sought after by Brad Pitt, Leonardo DiCaprio, and a Saudi prince.

When the city's luxury high rise One57 came onto the market in 2012, Chinese buyers were snatching up homes in the building where units go for as much as $90 million each.

Earlier this year, China's largest developer, Vanke, started work on its own Manhattan apartment building on East 53rd street with US partners RFR and Hines, as well as an affiliate of Chinese investment firm Cinda.

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