How do Chinese investors affect the market?
A: The Bay Area has been constrained in its inventory for some time. The recent influx of investment from Chinese developers has increased the number of new-construction condos.
Following the purchase of land, many of these developers need to go through the entitlement process before bringing these condos to market. That could take two or three years.
Once a building is ready, the pent-up demand can create quick sales of these buildings. Hayes Valley and the South Beach/SoMa area have been popular San Francisco neighborhoods for Chinese developers.
Available today are condos at 555 Fulton St., 450 Hayes St., 325 Fremont St. and the Lumina at 201 Folsom St.
Even with this increase in inventory, the demand for new construction surpasses supply. Assuming that trend continues, prices will remain on an upswing.
Jenn Davis, Pacific Union Real Estate,
(415) 812-2340, jenn@pacunion.com. A: According to the Hurun Report, China now has more billionaires than the United States, and those billionaires want to diversify their investments. Chinese developers love the Bay Area — San Francisco’s Chinatown is the oldest in the U.S.
China’s own financial system is turbulent at the moment. Their politics are always rather austere, and quality of life is lacking with such horrible air quality.
In general, the U.S. economy is growing — and the Bay Area leads that growth. With a healthy job market, a world-class city surrounded by natural beauty and necessity for more housing, Chinese developers can not only fill that need, but also see their portfolios increase in value over time.
Of course, we here in the U.S. are experiencing our own political turmoil. So Chinese development projects could look entirely different in the future.
Par Hanji, Paragon Real Estate Group,
(415) 307-5110, phanji@paragon-re.com.
A: It is truly amazing how much of a role foreign investment capital plays in financing longscheduled development projects in the Bay Area.
The San Francisco Business Times devoted virtually its entire December issue to identifying the commercial and residential projects under way and in the pipeline in Oakland.
Seven hundred startup companies came into San Francisco in 2012. Our infrastructure was unprepared to support that level of growth.
The urgent need for increased office space, housing and retail to support that extraordinary and rapid expansion has resulted in the latest building boom.
The influx of foreign investment capital from China — and others — is needed and important to keep scheduled projects moving forward.
There are strict local governmental regulations and requirements in place that will hopefully support moderation in the speed of the growth.
Our local economy is diversified, strong and growing. Having the support of foreign investment capital is, in large part, a good thing. Karen Starr,
Grubb Co., (510) 339-0400, Ext. 224,
starr@grubbco.com.