34 | LETTER FROM BEIJING WORDS | Hilary Li Know the agents
Jack Dong and his company, Amerealty, have been engaged in American real estate for nine years. What makes Dong excited about international real estate? And what advice does he have for international property providers who want to fi nd a partner in China?
the traditional ‘open hour’, for an interview. His experience makes it quite valuable. Jack Dong’s Amerealty is a leading real estate agency for international properties, which has specialised in U.S. real estate consulting, selling, managing and leasing for nine years. Meanwhile, the company also engages in the business of student affairs and immigration to the United States. Dong is very confi dent about
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the prospects of Amerealty, and the international property market for the Chinese in general. Up to now, Amerealty has been selling American properties almost exclusively for nine years. “Although it’s bad news for Americans about their economy, the Dollar keeps going down. I believe the U.S. housing market is reaching its nadir. However, the resulting affordability has made it the most popular real estate destination for Chinese buyers. ”
Dong continues: “The EB5 is another huge stimulus for Chinese buyers to invest in American properties. Emigration is the dream for so many Chinese people, a dream limited by
s the founder and chief executive of Amerealty, Jack Dong is too busy to spare
many factors, not the least money. But the EB5 offers an easy way for them to make their dream come true, turning emigration into solely an issue of money. So it is not surprising that Chinese buyers are so excited about the EB5. I think, despite the expense, that it will draw growing numbers of Chinese for years to come.”
When talking about his international partners, Dong turns serious, and chooses his words much more carefully. “We place great emphasis on the company’s qualifi cations: how long they have worked in this fi eld being a chief consideration when we are choosing an international partner. In addition to this, we want partners with professional staff who can offer follow- up services after the transaction of the house purchase. Nowadays, our clients have not just more money, but more investing sophistication, and therefore more concerns and higher requirements for after-service.
“For many Chinese clients, once the transaction is done, the true professional relationship begins. Most Chinese buyers of overseas properties are not planning to use them as permanent residences. So they want their property well administrated and rented, as well as maintained. Often I fi nd that a client
views professional staff who can offer reliable follow-up service as even more important than the property itself. “Over the past nine years, we have accumulated a lot of experience. There’s endless sweat behind the ‘magic’ of successfully marketing high-end international properties and attracting new clients from referrals of old ones. There also has to be the inevitable failure,” he adds. “I have a clearer memory of the failed deals than the
“If you can offer patient and
partners and friends to recommend developers to him. Also, he frequently attends overseas property exhibitions and real estate forums to look for new partners. He’s particularly happy about the launch of OPP’s Chinese partner site, OPP China. “OPP is another way I’ve found to connect with overseas properties,” he says. “It’s a great concept defi nitely overdue in China.” Naturally, Jack Dong has some
thoughtful service to Chinese buyers, they won’t let you down”
successful, because I want to draw lessons from them. In almost every case, these failures were the result of providers who didn’t have the ability to provide good follow-up service. Nothing’s worse for me than a client dissatisfi ed with my service, or the service of my partners, so I’ve implemented strict standards of cooperation with international developers.”
When asked how he builds
relationships with international developers, Dong says he relies on
strong views on the real estate crisis in China. “Nowadays it is not a wise idea to invest in the Chinese real estate market. The daunting prices are a nightmare for common people. Wealthy investors have been hampered by all the new regulations and tighter money. Then there’s the prospect of resale – with so many new properties going up and the low standards of building here, who’s to say you can sell your property even fi ve years down the road, to cash in on your equity? So, in addition to the drive to diversify an investment portfolio internationally, there are strong reasons for both wealthy Chinese and common people who can save enough to invest in overseas properties.”
As for the general price range at which Chinese clients look to invest, Dong said: “That depends on the specifi c developments and client profi le, of course. But in general the prices range between $10,000 to $100,000. Mostly, the price is over $50,000. “Generally speaking, the richer buyers prefer villas or single houses, especially in tourist resorts or near the sea. They want to enjoy a lifestyle unattainable here in China. Buyers who don’t plan to live abroad for the long-term prefer condos or townhouses, which are comparatively easy to manage and rent out. ” To wrap up, OPP China asks Dong to give some advice to the many international developers who want to tap the Chinese market. “Do in China as the Chinese do,” he replies emphatically. “We Chinese pay close attention not only to the quality of the property, but also to the developers’ credibility, and their performance over the years.
Long game | The follow-up process post-deal is key for Chinese buyers, says Dong “Chinese buyers are always cautious,
BUSINESS
www.opp.org.uk | JUNE 2012
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