LOS ANGELES—Chinese developers Greenland and Shenzhen Hazens Real Estate Group are focusing on overseas buyers to sell their condo stock, according to Patrick Inglis, an SVP at JLL. “Greenland and Shenzen are selling most, if not all, of the condo units overseas,” he tells GlobeSt.com. There is also high demand from foreign buyers, especially buyers from China, in the downtown market.
“Downtown has become a highly desirable market for foreign buyers, as its resurgence has made the Central Business District one of the strongest markets in the region,” Inglis says. “Foreign buyers are investing in a Central Business District market that still has significant room to grow to be competitive with premier suburban prices, and we believe Downtown's proximity to major employers, universities, and amenities bode well over the long term for its continued upward trajectory.”
This demand is expected to fuel pricing as well. Inglis says that rents and condo pricing is expected to rise through next year, even with plenty of new supply poised to come online. “As the full-time population in downtown Los Angeles continues to grow in 2017 and beyond, we see there still being room to introduce new units into the market without a material impact on apartment rents given growth in new renter households continuing to outpace supply delivered,” he adds. “It remains unclear as to whether the Greenland and Shenzen units will be introduced into the rental market, so I don't see a significant risk of these units impacting rents.”
Inglis also expects that all of the units in the pipeline will be absorbed due to the significant demand, from both foreign buyers and domestic buyers. He explains, “I think they will all be sold at strong prices as Downtown continues to mature and job growth, amenities and transportation development combine to further solidify Downtown as the center of Los Angeles.”
LOS ANGELES—Chinese developers Greenland and Shenzhen Hazens Real Estate Group are focusing on overseas buyers to sell their condo stock, according to Patrick Inglis, an SVP at JLL. “Greenland and Shenzen are selling most, if not all, of the condo units overseas,” he tells GlobeSt.com. There is also high demand from foreign buyers, especially buyers from China, in the downtown market.
“Downtown has become a highly desirable market for foreign buyers, as its resurgence has made the Central Business District one of the strongest markets in the region,” Inglis says. “Foreign buyers are investing in a Central Business District market that still has significant room to grow to be competitive with premier suburban prices, and we believe Downtown's proximity to major employers, universities, and amenities bode well over the long term for its continued upward trajectory.”
This demand is expected to fuel pricing as well. Inglis says that rents and condo pricing is expected to rise through next year, even with plenty of new supply poised to come online. “As the full-time population in downtown Los Angeles continues to grow in 2017 and beyond, we see there still being room to introduce new units into the market without a material impact on apartment rents given growth in new renter households continuing to outpace supply delivered,” he adds. “It remains unclear as to whether the Greenland and Shenzen units will be introduced into the rental market, so I don't see a significant risk of these units impacting rents.”
Inglis also expects that all of the units in the pipeline will be absorbed due to the significant demand, from both foreign buyers and domestic buyers. He explains, “I think they will all be sold at strong prices as Downtown continues to mature and job growth, amenities and transportation development combine to further solidify Downtown as the center of Los Angeles.”
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