Wealthy mainland Chinese are increasingly shifting their attention and capital away from the US to other real estate markets amid rising geopolitical tensions between Washington and Beijing, according to property agents. In 2024, Chinese buyers’ demand for homes that cost more than US$5 million moved to Thailand, Australia and Canada, respectively, according to data tracked by Juwai IQI. By comparison, the US in 2023 was the top choice among Chinese buyers, according to the property portal, which has a network of over 50,000 real estate professionals across more than 30 countries. “Geopolitical friction, protectionism and increased scrutiny of property deals have discouraged some buyers,” Juwai IQI co-founder and group chief executive Kashif Ansari said. “Chinese investment in US homes has dropped more than 50 per cent from its peak in 2017,” he said. “Buyers are looking for friendlier alternatives.” That trend reflects how America’s appeal as a destination for overseas tourists and international students has dimmed under the administration of US President Donald Trump. US existing home sales fell more than expected in March, as demand sapped amid growing concerns about an economic slowdown caused by tariffs, according to a Reuters report last month. Home sales fell 5.9 per cent in March to a seasonally adjusted annual rate of 4.02 million units, according to data from the National Association of Realtors (NAR). Economists polled by Reuters had expected home resales to fall to 4.13 million units. The latest NAR data showed that Chinese investors were the top foreign buyers of US residential property for an 11th straight year, but their investment dropped more than 40 per cent from a year earlier. The Chinese spent US$7.5 billion on US homes in the 12 months to March 2024, compared with US$13 billion in the year-earlier period, according to NAR data. Some property agents, however, see a growing number of Chinese homebuyers shifting their attention from the US to markets like Australia, Singapore and the UK. Peter Li, general manager of Australian real estate firm Plus Agency, said a Chinese executive and his friend, who shuttle between Shanghai and Singapore for business, started looking for a property in Sydney worth about A$10 million (US$6.4 million) in April. The buyer initially looked at US real estate as an investment destination, but ultimately abandoned the plan, Li said. “Why Australia? Number one: even Americans don’t want to live in America at the moment,” Li said. “My buyers look at America as a little bit more chaotic and uncertain at the moment.” Besides the stability that Australian assets provide foreign investors, the country’s time zone is also friendlier to those in Asia, “whereas America is literally day and night”, he added. In the first quarter, Chinese buyers bought 301 residential units in Singapore, about 42 per cent higher than the 212 homes acquired by this cohort of investors a year earlier, according to official data. “Since April, there appears to be an uptick of inquiries from Chinese companies concerning industrial premises for use,” said Alan Cheong, executive director for research and consultancy at Savills Singapore. “It is still too early to tell if these inquiries will lead to a deal. But if they do, the likelihood of them buying private homes would increase.” A study released last month by Savills found that Singapore has become the most preferred relocation site for companies. The city state also ranked third in terms of relocation of wealthy individuals. “Singapore offers high-net-worth individuals and families an ideal blend of political stability, tax efficiency, a strong legal framework, world-class education and healthcare,” said George Tan, managing director at Livethere Residential at Savills Singapore. “With luxury residential options and a thriving business ecosystem, it has become a top global destination for those seeking wealth preservation, global connectivity and a premium lifestyle.” The same interest from Chinese investors are also being seen in the UK, according to David Johnson, managing director at property consultancy Inhous, which has offices in London and Dublin in Ireland. “We have assisted a number of Chinese buyers with their property search, as they find the US property market becoming too volatile amid political developments,” Johnson said. “On the other hand, the UK – particularly London – continues to appeal because of its excellent universities, a highly respected cultural scene and career opportunities, as well as quick transport links to Europe.” Beyond geopolitical worries, rising property taxes in the US have also become a concern, according to London-based Amber Zhao, head of Asia-Pacific at property agency Chestertons. “One of our clients is a successful Chinese tech entrepreneur in his late 50s, who previously lived in California with his wife and son,” Zhao said. “He held a US green card and owned a luxury home. But after several years in the US, he decided to sell his property there and relocate his family to London, where he bought a £4.2 million (US$5.6 million) flat in 2024.” Inhous’ Johnson said another reason typically cited by Chinese investors was a change in personal circumstances, which made the UK a more suitable fit for their lifestyle. “We have previously been approached by a Chinese buyer who set out to purchase a property in Texas because his son planned to go to college there,” Johnson said. “His son ultimately secured a spot at Oxford University, which resulted in his father buying a property for him in that city, along with a pied-à-terre in London, because his budget allowed him to do so. He also felt that the pied-à-terre presents a good long-term investment.” Still, there is one trump card that the US property market offers, which is the golden visa programme, according to Global Citizens Solutions – a boutique investment migration consultancy with offices in the UK, Portugal and Brazil. “The US EB-5 programme has been established for decades and consistently approves thousands of applications each year,” said Patricia Casaburi, the firm’s chief executive. Trump, meanwhile, unveiled in February a US$5 million “Gold Card” that would give rich immigrants the right to stay in the US indefinitely.