BOOM! The Sound of the Las Vegas Market Exploding… Again!

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Las Vegas and Beijing. Two cities separated by 6,240 miles on paper, but in reality grow closer to each other with each passing year. Beijing, a city in existence for 3,000 years and Las Vegas, a city that was founded in 1905, have become more intertwined than the age or distance between the two would have you believe.

Beijing’s population of 12 million dwarfs the population of the entire state of Nevada, which boasts a population of just under 3 million. The population of China at 1.4 billion dwarfs the U.S. population of 317 million by numbers that are almost too difficult to fathom.

Those numbers are only surpassed by another staggering statistic: China, an emerging country whose economy is growing three times faster than the rate of the U.S. economy, creates a new millionaire every THREE MINUTES.

This poses a problem for those newly minted Chinese millionaires. Where are they to put the money? In China, there are few options. The Chinese stock market is considered one of the most corrupt in the world, dominated by government and military insider trading. Chinese real estate once proved to be an attractive investment, but there are now 87 million vacant Chinese investment properties leftover from white hot speculators. Seeking an alternative, Chinese monies flowed with breathtaking speed into Canada, overheating the Vancouver and Toronto markets to the point of requiring government intervention and a 15 percent tax on real estate transactions in Vancouver, essentially freezing that marketplace.

In the United States, monies have been flowing into San Francisco and its surrounding areas for years due primarily to the explosive growth of the tech industry, forcing the average price per square foot for a condo in the city to now exceed $724. As Chinese smart money continues to seek new assets to shelter newfound wealth from the Chinese government and bubbled economy, it only makes sense to consider Las Vegas, a city very familiar to the hundreds of thousands of Chinese tourists who visit each year. According to a new report from CSLA, the number of Chinese visitors coming to the United States will more than triple by 2020. Chinese money is now invested in five luxury condos a month and those numbers continue to grow.

With direct flights to and from Beijing and Shanghai, China is more than a faraway neighbor. The country is providing a form of long term investment capital that will be secured by a vibrant growing Las Vegas economy and its real estate.

 

Yelena Brezhneva

REALTOR, Luxury Estates International

yelena@luxuryestates.com

Yelena Brezhneva

 

 

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