GlobeSt.com: Which US cities are most attractive for Chinese Millennial buyers, and why?

Ellis: Many Millennials who studied in the US are now working for corporations back in China, but they cannot afford to buy in the huge Chinese cities they are working in such as Shanghai with its population of 24 million, Beijing with its pop of 21 million, Tianjin with its population of 15 million, and Guangzhou with its population of 13 million. Median prices can be up to US $1 million or more in these cities, buying a small apartment of 48 square meters in Shanghai. In the US luxury market, $1 million will buy you an apartment approximately 20% larger in Los Angeles and 25% larger in Miami, so Chinese can see the value when comparing cities.

In our experience, Millennials buy in locations they know well, which usually means the cities they studied in or where family members or friends live. Due to their life stage, investment properties are usually more sought after, with popular locations being California, San Francisco, New York, Las Vegas, Boston and Florida; locations of the Ivy League Universities and well regarded schools. For those who have not been to the US, they are more likely to buy in locations where they know other Chinese are already buying, as this provides confidence in their investment decision.

MIAMI—Chinese Millennials are flocking to the United States. There's one overarching reason for this: pricing. But where are they settling?

GlobeSt.com caught up with Jon Ellis, founder and CEO of Investorist, to get his thoughts on the hottest cities for Chinese Millennial buyers. You can still read part one: How Developers Are Reaching Buy-Ready Chinese Millennials.

GlobeSt.com: You just hosted a China Connection event in Shanghai and Shenzhen. What percentage of Millennial investors were represented through the various attending agents?

Ellis: It is difficult to estimate what percentage of US buyers are Millennial investors, and for US developers this shouldn't be necessarily the focus of their sales efforts, as older generations often have accumulated more wealth. What is crucial for success is finding and working with the right local agent in China—who have their own large client bases—and understanding what the key investment drivers are for the buyers they represent. These might be capital growth, highly regarded local schools or universities, rental yield, transport proximity or having an established Chinese community.

GlobeSt.com: Which US cities are most attractive for Chinese Millennial buyers, and why?

Ellis: Many Millennials who studied in the US are now working for corporations back in China, but they cannot afford to buy in the huge Chinese cities they are working in such as Shanghai with its population of 24 million, Beijing with its pop of 21 million, Tianjin with its population of 15 million, and Guangzhou with its population of 13 million. Median prices can be up to US $1 million or more in these cities, buying a small apartment of 48 square meters in Shanghai. In the US luxury market, $1 million will buy you an apartment approximately 20% larger in Los Angeles and 25% larger in Miami, so Chinese can see the value when comparing cities.

In our experience, Millennials buy in locations they know well, which usually means the cities they studied in or where family members or friends live. Due to their life stage, investment properties are usually more sought after, with popular locations being California, San Francisco, New York, Las Vegas, Boston and Florida; locations of the Ivy League Universities and well regarded schools. For those who have not been to the US, they are more likely to buy in locations where they know other Chinese are already buying, as this provides confidence in their investment decision.