Figuring out in how many words one can give a concise description of Chinese investment isn’t a mere matter. Have you ever wondered the tremendous growth and continuous wealth heaped up in the International Real Estate sector by Chinese investors in these recent years ? They may appear similar in many ways, aiming for two major objectives through massive investment in overseas housing : finding the rare pearl that can potentially propel them to an upgraded stage and secondly get social tracks. Moreover, having a leading ‘face’ is significant, socially speaking, in order to get priceless connections and further partnerships.
Investment planned by Chinese consumers all over the world has paid off as they made a bet for long-run projects and harvested the good seeds. They started their initial expansion from a previous focus on natural resources extraction and energy in developing countries. Then they broaden their perspectives in industrial projects and state-of-the-art products and services in major developed countries.
An unwavering strength : New buyers called Chinese Millennials
Back to the old days, the traditional agent in real estate used basic telephone to communicate and trade, as a direct and privileged intermediary to investors. Recently a drastic change has reshaped the International Real Estate realm: younger home buyers called Millennials.
Millennials may appear unfamiliar at the first sight. Literally, dropping a bomb right at the outset. In fact, It refers to the kind of people, aged between 19 and 36, who will probably takes an even greater role in the housing market in globalized cities of Mainland China. Young people’s priorities and preferences are beginning to redefine the way real estate business is achieved. Majority of them are tech-savvy and don’t bother anymore with abiding discussion if it can be texted or sent swiftly.
Meanwhile, in China, they behave differently comparing to baby-boomers in multiple ways as declined: They rarely need agents because of previous wise preparations made, except the advice of ‘International voice’ through social media platforms such as Wechat and Weibo. Indeed, millennials request a fast driven customer service, transparency, bystanders in digital presence ingrown by social media engagement, user-friendly apps, feedbacks and recommendations. Thus, they can potentially afford the location they wish, seeing it not as an hurdle to overcome but a challenging situation.
Chinese investment is becoming more active abroad
Ever-growing demand in real estate property and acquisition have convinced Chinese buyers to take a glance at international markets. In fact, from their past experiences, Chinese investors were extremely beneficial as housing prices has skyrocketed since 2008. Emblematic year for China with Beijing Olympic Games and Foreign Direct Investments (FDI) impulse. Meanwhile, the risk-takers who bet on growth in the 2008-2014 period were warmly welcomed by national real estate market shares. The performance peak has been reached recently, in 2016 in which the average price in Chinese global cities are now stagnant.
In spite of the status quo situation, old buyers and newcomers are still eager to invest in local housing. However, thanks to more flexible laws on capital restrictions from the Chinese government. This specific initiative showcases the gradual urge of converting their investment in a broader ecosystem. Actually, it’s an unprecedented opportunity for wealthy and engaged Chinese people as well as multiple iconic companies to ‘outsource” their funds overseas.
Furthermore, they are already impacting the global real estate markets and this trend will pursue further ahead with the One Road One Belt national lead. As an “unicity in diversity” ironclad development. As a result, the China Real Estate Expo – China Property Expo that occurred in Shenzhen this year in mid-May has met tremendous success. Many representatives from global companies like EMAAR and JLL pitched and inspired attendees around the real estate opportunities in Canada, Australia, Dubai, Malaysia, Spain and so on.
Smart investment for their future
Chinese buyers don’t invest in the same way comparing to what they used to do in their hometown. The profound need for ownership is engraved into their culture, passed down through generations and families. China still remains quite traditional because of the property “goods”, more considered as warranty stock. A great majority of Chinese citizens are owners, especially from males’ side. Marriage, social status and stability are what drive these intergenerational savings
Needless to say that the current House Bubble, generated by countless investments and bet are encouraging them to invest abroad. However, criteria differ. From having an outstanding property at first sight, they slightly changed their tastes. Seaside property, coastal cities, appealing housing deeply immersed in an enjoyable environment, they seem to adopt more strategic decisions and acquisitions. Thus, combining the luxury effects display and the social value and comfort, Chinese investors are thinking globally by acting wisely.
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