Foreign investors continue to buy real estate assets in the United States at a torrid pace, according to Real Capital Analytics.  Investors from Asia have been particularly active.  A record amount of $5.2 billion for a year has already been invested and 2013 is about half over.

Reports have stated many reasons for Asian investors to purchase billions in American real estate.  Economic growth is down in China, India, and other Asian nations.  Gold is down, too.  As a result, US real estate has been the "safe haven" asset due to the strength of the American economy.  Real estate investing in the United States is now the new precious metal for foreign investors.

Real Capital Analytics reports that South Korea is on a pace to triple its real estate buying in the United States.  Groups from China and Singapore have also been very active.  According to an article in The Wall Street Journal by Craig Karmin, it is the wide variety of assets in the United States in its real estate market that Asian buyers find so appealing.

That foreign investors are buying into American real estate is certainly nothing new.  In the 1980s, there was a tremendous surge of buying, with much of that from Japan.  With huge trade deficits, Japanese investors recycled their export earnings into US properties.

Much of the same is happening with China now.

China has over $3 trillion in foreign reserves.  It is the world's largest exporter.  There is about a $30 billion monthly trade surplus for the People's Republic of China.  The American real estate market is a logical place for the Chinese to invest.

It is the same story with other Asian investors.

Singapore is an island nation.  For investing purposes, buying US real estate is far wiser than driving up the prices at home.  That prevents a bubble from forming in the real estate market in Singapore.  The huge bubble that formed in the Japanese real estate market in the 1980s contributed greatly to "The Lost Decade" of economic growth after it burst.  For Japan, "The Lost Decade" has lasted well over 20 years; with no end in sight.

Asians are also fearful of the economic future in the region.  As the chart below shows, the US Dollar has been increasing in value as the Japanese Yen has fallen.  By purchasing real estate in the United States, investors from Asia can hedge against declines in assets denominated in their home currencies.  High real real estate investing in America also returns far more than the low interest rates from bonds and paltry dividends from stocks, other articles have noted.