Foreign Buyers are Snatching Up Units in the Millennium Tower.
Proof that Boston’s Real Estate market is front and center on the world stage, foreign investors have been buying units in the renowned Millennium Tower two or three at a time. Investors from Greece, China, and the Middle East have been buying high end units in the iconic Boston building since they’ve become available.
One investor in particular, Bingyi Chen of China, has bought 16 units on behalf of investors from his country for a whopping $15.6 million, all cash. The rent prices are listed at $4,100 per month. It’s a testament to the global real estate market, and the fact that it’s thriving in Boston. With all the luxury buildings and condos for sale becoming available all around the city combined with a lower cost of living compared to other cities like New York and San Francisco, Boston has established itself as among the best cities in the nation for investors.
According to the National Association of Realtors, foreign real estate investors spent $102.6 billion on residential properties in the US in 2015, which marked a 50% increase since 2010. Investments from China tripled in 2015 to $27.3 billion, mostly because they see it as a more stable investment than in their homeland.
This has developers concerned, as they try to maintain a delicate balance between investors and people purchasing to own. Ideally, most developers would prefer to have more owners than renters, as it’s more attractive to potential buyers. However, it’s difficult to turn down investors when most are paying with cash in hand.
Some developers will put a cap on investment purchasing, and even go as far as to prohibit bulk purchases. Still, it’s hard to ignore the growing contingent of foreign investors trying to buy a piece of Boston, and this is a trend you can expect to see as more developments break ground.