Report from China: Our Observations

Tyler McKay at an EB-5 Seminar in Beijing

(By Brian Su) I have been meeting with emigration agents in Beijing, Xi'an and Shenzhen during a week long trip. Here are my one week's observations, hope it gives you a quick glimpse of current market conditions:

1) Emigration Agents

I met a number of smaller emigration agents who are very interested in smaller direct EB-5 projects as they feel more control over it. They believe that they can easily sell much smaller projects than big ones. I also visited one of the leading agents, like many other major EB-5 agents, they are selling Greece villas for $250k.  I can tell that European real estate visa program has become a major competitor to the US EB-5 program. Almost all EB-5 agents are taking resources and time to promote European visa programs. In regard to EB-5 program, emigration agents are mostly concerned about I-526 processing time.  I was told that when a petition for a bridge project was recently approved by USCIS, many investors burst into tears!

2) Projects

There are New York and Texas projects are taking the mainstream market. There are many smaller projects that have not made major impact.  Direct EB-5 projects continue to gain attention. The market is very competitive, the cost of acquiring investors is rising. As usual, real estate related projects are very popular among emigration brokers and investors. 

3) Final Conclusion

Agents and investors are watching Obama's immigration reform legislation, they wish that Regional Center program could become permanent. Emigration agents and investors are highly selective on choosing projects, quality of project is vital in today's market. Interests and needs of investors for EB-5 program are real and strong, however navigating the complex and competitive market is a major challenge for many EB-5 project developers.

4) Upcoming Event

I am leading an EB-5 business and investment delegation to Beijing Oct 13-20, 2013. We will be meeting with emigration agents, emigration trade association, investors and co-hosting US China Investment Forum with China's largest law firm Da Cheng Law Firm, and co-hosting an EB-5 Forum with major broker Worldway Group in Beijing. We will also travel to Suzhou (nearby Shanghai) by one of the fastest trains and attend an EB-5 investment event jointly hosted by emigration agent and a major bank.  Please contact Tyler McKay at 217-899-6661 for our trade mission program. Application deadline: Sept 1, 2013