Real Estate Market Slows, but Opportunities Remain : Overseas Chinese Investors Explore New Frontiers.

While the real estate market has slowed, investment opportunities remain. In Southern California, certain “blue ocean” residential areas still present value, while properties in other U.S. states and abroad are also gaining traction. Entry-level commercial real estate—such as multi-family apartments and small retail properties—has increasingly become a hot spot for overseas Chinese investors.

The 4th North American Real Estate Investment Forum was recently held, gathering hundreds of industry elites to discuss topics ranging from global expansion and AI-driven media to healthcare investment, fintech, digital assets, and multi-family housing.

Lily Zhang, founder of North America Real Estate Academy and organizer of the forum, noted that the three-day event drew more than 1,000 participants and 70 exhibitors, including developers, investment service providers, and financial institutions. “Although many say the real estate market is slowing, Chinese investors’ faith in property remains strong,” she said. “Everyone is watching the market closely and waiting for opportunities. For example, areas in Southern California such as Cerritos and Eastvale still offer reasonable price points. It’s also worth considering commercial real estate beyond traditional housing, such as multi-family apartments. With rising interest rates, some owners are unable to maintain their loans, which can present opportunities for quality properties to be acquired at lower prices. Small triple-net (NNN) retail units are also attractive investment options, as tenants cover taxes, insurance, and maintenance, leaving landlords with net rental income.”

She added that while interest rates may adjust this year, significant cuts are unlikely within the next one to two years.

“In today’s economy, portfolio diversification is crucial. Beyond real estate, investors should also consider stocks, venture capital, or even Bitcoin. In fact, some Bay Area tech workers first profited from financial markets or cryptocurrencies before reinvesting into property.”

Jason Wang of L&M, a financing and investment firm, highlighted that multi-family apartments remain one of the most popular entry-level commercial assets for Chinese investors. “There are multiple financing options for multi-family loans,” he said. “However, most commercial loans impose prepayment penalties, and each institution has different terms—some even tie penalties to Treasury yields.”

Jason Wang also noted that small office buildings near residential neighborhoods are another overlooked opportunity.

“Properties in the 3,000 to 5,000 square-foot range tend to have relatively low vacancy rates,” he explained.

Interest is also growing among Southern California investors in out-of-state markets. Real estate consultant Lanjuan Zhao pointed out that the U.S. Midwest and East Coast—such as New Jersey—have shown strong appreciation in recent years, while Japan has emerged as a hotspot for global buyers. “Local regulations matter a lot,” she cautioned. “The worst nightmare for landlords is tenants who can’t be evicted. Red states governed by Republicans tend to have more favorable rules—you can usually remove bad tenants within two weeks to a month. And if a property is selling at a very low price, either the owner or the property itself has issues. Due diligence is essential to make real money.”

Texas remains a major focus for Chinese investors, according to real estate analyst Songmei Wang. “Texas has four key metropolitan areas—Houston, Dallas, Austin, and San Antonio. In San Antonio, a 2,000-square-foot home can still be purchased for around $200,000. Dallas is expanding rapidly with a booming logistics sector, making warehouse properties popular. Houston is also a hub for warehouse investments, while Austin—with Tesla, Apple, and other tech giants—offers strong opportunities for triple-net retail investments.”