(Photo : National Association of Realtors Building with Capitol in the Background)

The National Association of Realtors (NAR) in the US has released a report that showed Chinese buyers are purchasing more expensive homes in the US than any other foreign buyers last year. And the figure is expected to rise this year.

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Based on the annual report released by NAR, Chinese buyers from the mainland, Hong Kong and Taiwan, made a total of $8.2 billion worth of expensive properties in the US. The figure represents 12% of the total $68.2 billion that foreign buyers from 68 countries spent for US houses.

As property prices in China continue to rise despite government efforts to bring down the cost of owning properties in first-tier cities, wealthy Chinese turn their focus to overseas properties that are deemed cheaper.

70% Paid In Cold Cash

According to the NAR report, Chinese buyers bought properties mostly in California and Detroit last year. Of the $8.2 billion spent in buying properties, 70% were made in cold cash, sources said.

And the properties that the Chinese buyers have purchased in the US are not cheap. According to NAS, these Chinese investors spent a median price of $427,000 on US houses.

Real estate services firm Jones Lang LaSalle (JLL) said China's overseas real estate investments will increase at 30% rate this year. The firm said Chinese prefer buying residential properties in the US, Canada, United Kingdom, and Australia.

Real Estate Investment in Jeju Island

Even in Jeju Island, South Korea's tourist island, Chinese buyers have purchased a total of 2.46 million square meter of land. According to the Jeju provincial government, Chinese real estate investment in the island rose 4,890% over a period of two years.

According to the China Real Estate Industry Association, China's property prices in 69 of 70 major cities continue to rise last month compared with a year ago. Association President Zhu Zhongyi said the prices are likely to rise even further many cities despite government efforts to curb speculation.