34 | LETTER FROM BEIJING WORDS | Hilary Li Rich leave China
No question about it, the Chinese represent one of the most important overseas investment markets in the world – and it’s growing fast. OPP China speaks to Ying Tong about the changes taking place in that market and what the Chinese investor is really after
future. The most favoured destinations, unsurprisingly, are the US and Canada. 85% of these millionaires plan to
O
send their children overseas to study. The most favored destinations for overseas study? Again, that’s the US, with the UK and Canada following closely behind, according to The Chinese Luxury Traveler White Paper, 2012 published by Hurun Report. “The overseas property market in
China was only a few sparks several years ago, but nowadays it’s raging like a prairie fi re,” says Ying Tong, explaining the booming overseas property market in China. “Its development is as astounding to us Chinese agents as it is to westerners – but also very exciting.” Ying Tong is the Chief Strategy
Consultant of Glory Real Estate (GRE), a leading property agency dedicated to marketing international property to mainland Chinese investors. GRE works with international property developers, estate agents and land owners to offer a range of property options to an exclusive database of Chinese buyers. GRE markets new build, off-plan,
ver 60% of Chinese millionaires have emigrated or have plans to do so in the near
renovated and historical residential properties, as well as commercial properties, through an international team of property experts.
Emigration and study abroad have become the biggest drivers for Chinese buyers who have invested or plan to invest in overseas property. The Hurun Report claims that America, Canada, and Australia are the most popular destinations for Chinese considering overseas investment. “These countries will still be key
destinations for Chinese property buyers in the next 5-10 years. But as a whole the proportion will see a decline,” Tong tells OPP, “nowadays other European countries, Asian countries and several South American countries are starting to get attention from Chinese investors and buyers.” Naturally, overseas agents and
developers outside of America, Canada, and Australia have ample and diverse offerings to market in China. “But it will take time and effort to educate Chinese buyers and investors. It’s unrealistic for these developers to expect to make fast money in China. “One reasonable method is to
cooperate with a local company with access to target clients, and who can perform consistent follow-up work,
maintaining good communication with potential clients. They should also develop a data base with quality client resources,” Tong advises western organisations in countries lesser- known to the Chinese. Ying Tong views Cyprus as a country with great potential for attracting Chinese investors. “After various promotions on Cyprus properties from real estate companies, immigration companies and Cyprus’
“It will take time and effort to educate Chinese buyers and investors on lesser- known countries”
offi cial media over the past year, Cyprus properties now have some market recognition among Chinese consumers,” she says. “Cyprus offers many benefi ts to foreign investors and buyers, including great value and a gateway to the EU. Chinese investors can get a permanent EU residency in Cyprus with property purchases above €300,000, which is a great temptation for Chinese buyers who want to fi nd an easy way to emigrate overseas. That’s more and more valuable nowadays,
with prime countries like Australia, Canada and the United States practicing more strict immigration policies than before. Therefore, I see no reason why Cyprus property shouldn’t perform well and have bright prospects. Cyprus gives Chinese buyers what they want most!” As well as properties for emigration
and studying abroad, vacation properties are attracting more Chinese ‘high net worth individuals’ (HNWIs). There are 2.7 million HNWIs
in China currently, with personal assets of more than 6 million yuan ($950,000) and 63,500 ultra-high net worth individuals (UHNWIs) with assets of more than 100 million yuan ($15.8 million), according to the Hurun Report. One must also keep in mind that a great deal of China’s wealth is not offi cially reported. HNWIs and UHNWIs both
demand as high a quality of life as their western equivalents and therefore are keen to acquire overseas vacation properties. Spain is known for having very
depressed real estate prices right now, as well as great vacation properties and a relaxed lifestyle. “They [Spain] may be a favorite for the rich and for elderly people, but not for common investors.” Tong said. “To generate large volumes of purchase for Spanish properties, an investors’ base should be developed by marketing on return yields and quality follow-up services.” When one mentions Malta to a
Chinese national, one will most likely have to explain that it is a beautiful little nation close to Africa, but with an English culture and demographic. Unsurprisingly, Chinese buyers will
think of Malta’s vacation property potential fi rst. Tong explains her opinion on how to position Malta properties with the Chinese: “Its marketing is better tied up with resort properties or immigration strength, and Malta promoters should choose fi rst- tier cities for promotion fi rst. “One key problem for the current
Leaving on a jet plane | Rich Chinese are looking at overseas properties both for vacations and residential opportunities
market is the lack of enough publicity support in the whole market. So developers should fi rst invest conscientiously in marketing before reasonably expecting any sales.” No matter which country’s
BUSINESS
www.opp.org.uk | JULY & AUGUST 2012
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