According to Jones Lang LaSalle, a US based real estate investment company, Chinese investors spent $16.5 billion on overseas real estate last year, an increase of 46 percent from the year before.

Foreign critics may find the news alarming, particularly considering how the speculation of Chinese investors is impacting real estate markets, and people are quickly priced out of real estate in their own backyards. Los Angeles real estate broker, Eric Coven, openly admitted to creating a group to attract rich Chinese buyers for high-end luxury villas in Las Vegas. “I can make about $4 million a month from making quick sales to a group of Chinese customers.”

China based investment broker, Yan Weiming, disagrees. “Saying that Chinese newly-rich are throwing tons of money to purchase real estate overseas is just speculation,” said Yan. Meanwhile, American-Chinese real estate developer, Jennifer Wu, argues Americans should change their perception of Chinese buyers. “We should cherish Chinese investors. They are reliable, and help strengthen overseas real estate markets.”

Part of the push to purchase overseas property is a complete loss of faith in the broken Chinese system. According to Chinese investment advisor and real estate researcher, Yin Xufei, Chinese purchasers feel they have no safe alternatives but to invest overseas. “Chinese (house) buyers are inclined to invest overseas,” he said. “The risk to invest in the Chinese stock market is high; the risk involved with the local real estate market is equally high. This is why many Chinese turn to countries abroad when investing.”