The U.S. is a siren for Asian real estate investors.
From Jan. 1, 1993, to Dec. 31, 1996, Asian sources invested a total of $6.3 billion in U.S. real estate, according to E&Y Kenneth Leventhal Real Estate Group, Los Angeles. Purchases of $2.2 billion from Hong Kong led the way.
California was the favorite target for capital, with $1.4 billion, and hotels were the hottest property, accounting for $2.7 billion.
Japanese investors continued to be sellers of American property, selling $23.6 billion during the period. The number is misleading because it is based on purchase price, and the vast majority of Japanese investors sold their U.S. holdings at a loss.
Also on the list of biggest buyers were: Singapore, with purchases totaling $1.4 billion; Taiwan, $521 million; Indonesia and Brunei, $261 million each; and China and Korea, $235 million each.
The interest in American real estate by Asian investors is driven by the region's vast wealth coupled with limited investment opportunities and a downturn in property markets there, the report said.