Asian Impact on the Market
Asian cultures generally value modesty, hard work, and strong family ties. The popular conception is that most Asians work diligently and quietly. However, the loud impact of Asian buyers in Silicon Valley has been noticed.
Asian buyers are dominating the housing market as they flock to Silicon Valley. The influx has uniquely impacted the Silicon Valley market in numerous ways. Asian residents are now amongst one of the largest population groups in Silicon Valley cities. In Cupertino, for example, more than half of the residents are Asian, according to the U.S. Census Bureau of 2010.
Asian buyers contributed to the increase in sale and purchase prices because of their all-cash, above asking price, non-contingent offers. Buyers know that to successfully purchase a prime Silicon Valley home, they must place a competitive offer the seller cannot refuse; Asian buyers do this well.
High offers from Asian buyers make property in Silicon Valley a rapidly appreciating asset. Palo Alto experienced some of the highest home appreciation rates of any community in the nation, with an appreciation of over 30% over the last two years.
Not surprisingly, developers design homes to appease Asian aesthetics, making note of Feng Shui, Vatsu Sastra, and other cultural beliefs.
Recently, a home in Los Altos even changed its address from 1714 to 1718 to adhere to the Chinese belief that the number “8” brings good fortune. According to the Wall Street Journal, many new residences have kitchens outfitted with wok burners; others have European-style bathtubs and bidets; and some South American-inspired residences include sprawling balconies to accommodate large extended families.
Whether you seek a home that has features often favored by Asian buyers, or you prefer the opportunity for a value due to traits considered unfavorable to Asian buyers, make sure you find a skilled real estate agent to help you successfully place an offer and purchase a home in this highly sought after market. Also, when selling, your agent should fully expose your home to Asian buyers.
