PIRI 100: The US is still the top destination for Asian buyers
Tax reductions, rate cuts and an increase in annual price growth all contribute towards the US's enduring appeal for Asian investors
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The US remains the number one destination for residential purchases among Asian UHNWIs, according to The Attitudes Survey (see chart below). Figures from the National Association of Realtors reveal US$78 billion of purchases by overseas buyers in the year to March 2019. The appeal of holding a dollar-denominated asset in the world’s biggest economy is likely to increase on the back of 2019’s three rate cuts, with some buyers viewing the lull in the run up to the presidential election as a potential opportunity.
Miami benefited from the State and Local Tax (SALT) deduction ruling in 2019, attracting wealthy migrants from higher tax states. New York’s lingering supply side weakness was partly offset by a rally in equities, while Boston and Aspen saw average annual price growth nudge 2% and 5% respectively. Average achieved prices were significantly higher at 19% and 13% respectively as a number of big ticket properties changed hands.
Top five countries where Asian UHNWIs plan to purchase residential property in 2020
- US
- UK
- Singapore
- Australia
- Canada
(The Wealth Report Attitudes Survey)