Foreign investment in U.S. real estate is hitting the pause button, according to a report by the National Association of Realtors, and the pullback is most evident among Chinese buyers affected by China’s slowing economic growth, currency devaluation and tightened restrictions on capital outflows. Other reasons the report cites include a stronger U.S. dollar and rising home prices.
The Business Journal reached out to Sharran Srivatsaa, president and chief innovation officer of Teles Properties Inc., to find out if Orange County’s luxury market has experienced a similar retraction in home sales to international buyers.
“We have seen the Canadians pull back a bit,” he said, “(but) the demand for Orange County real estate is still strong, with various international buyer groups actively engaged as buyers.”
Srivatsaa pointed out that in the last two years, Chinese buyers have picked up nearly 75% of the new construction in Irvine. “(Also,) Middle Eastern buyers are looking at parts of the Pelicans and Laguna Beach.”
He said three key structural factors continue to make Orange County’s real estate market attractive to international buyers.
“First,” he said, “Orange County is a developing melting-pot cultural ecosystem where you can still feel at home with access to language, culture, cuisine and a support system, especially for the Asian community.” Second, “the Southern California lifestyle secret is out. It was often about New York and San Francisco, but short vacations at great local resorts turn into real estate purchases. Last but not least, the OC luxury market is ‘cheap’ compared to Shanghai, Hong Kong, Tokyo … or even Manhattan and San Francisco.
“Plus, the Orange County real estate market is structurally healthy, with 5% to 7% annual price appreciation, strong demand with continued supply, and healthy diversity in price point and product type.”
Calling All View Lovers
The traditional-style home at 4028 Calle Ariana sold on March 4 for $6.8 million. It was listed in November for $7 million.
The four-bedroom, four-bath home sits atop the bluff and delivers unobstructed white water and ocean views stretching from Cottons Point to the Dana Point Harbor.
Its 4,100-square-foot open floor plan is designed to maximize the views from all common areas. The kitchen features custom counter tops, top-of-the-line appliances, and a breakfast bar and dining area overlooking the water.
Outside, there are patios on both floors that provide space for entertaining. Private steps off the balcony lead to the beach. The lot is 7,884 square feet.
Gary Ward of CENTURY 21 represented the seller in the transaction, and Julia Jackson, also of CENTURY 21, worked on behalf of the buyer.
Bonita in Lagunita
The five-bedroom, four-bath, 4,000-square-foot home at 26 Lagunita Drive in Laguna Beach sold on Feb. 29 for $6.5 million. It was listed at $6.7 million two weeks earlier.
The remodeled oceanfront residence, nestled on a 7,841-square-foot sand lot in the private, gated community of Lagunita in Laguna Beach, is defined by an open layout, and seamless indoor and outdoor living spaces. The Balinese design-influenced exteriors are comprised of multiple levels of decks and balconies for taking in the panoramic white water and ocean views.
The home’s interior includes wood-paneled ceilings, masonry fireplaces and high ceilings, plus skylights that bring natural lighting into nearly every room.
The sale was represented by Tim Smith of the Smith Group, Coldwell Banker Residential Brokerage on the seller’s side and Patrick Toohey of Berkshire Hathaway HomeService on the buyer’s side.
Montage of Beauty and Style
The 2,900-square-foot, three-bedroom, four-bath, ocean-view home at 3 Stickley in Laguna Beach closed on March 1 for $6 million, coming in under the October list price of $6.5 million.
The one-level home offers a kitchen with granite and marble finishes, professional Viking range, two Bosch dishwashers and a large island. It’s been upgraded with burnished wood flooring, custom woodwork, silk draperies and designer touches throughout.
John Stanaland of HÔM Sotheby’s International Realty and John Cain and Kathryn White of the Cain White Group, HÔM Sotheby’s represented the buyer and seller, respectively.
