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JULY & AUGUST 2012 |www.opp.org.uk


properties one is marketing to China, Ying Tong holds that projects under $7.5 million are the best sellers. While the fi rst wave of Chinese


investors comprised families with emigrant aspirations, the proportion of pure investors is rising. This is closely related with China’s rising fortunes: growing disposable income, and gains in the RMB’s purchasing power. Nonetheless, since overseas property


is a new investment sector for China, rare is the Chinese investor who will risk the expense of a top-tier luxury or large- scale product, at least for a fi rst venture. “After one or two smaller investments, a huge follow-up investment is not unusual,” Ying Tong claims. Ying Tong also stoutly maintains


that after-service is one of the most important yet most-overlooked aspects to consider when selling properties to the Chinese. Local management services are highly valued by Chinese buyers, especially ones that are responsible and comprehensive.


“There are many so-called ‘rent


package’ products. But in fact customers have paid much more than the purchase price and management premium for a rent package. So, timely service for rental income collection every month, timely property repairs and timely service to secure a new qualifi ed tenant when a lease


BUSINESS


agreement expires, as well as simple legal and tax consultations, are all hugely important elements to Chinese investors. “Public recognition among


customers leads to all-important word- of-mouth referrals. That’s why quality follow-up service to customers is paramount for everyone on my team at Glory Real Estate” Tong enthuses. “We like to work with overseas partners who maintain the same spirit of service. So far, nearly 80% of Glory’s clients would buy a second property


“After-service is one of the most important aspects when selling to the Chinese”


from us, a testament to our dedicated customer service.” Ying Tong is of the opinion that,


for now, most Chinese people want to involve a Chinese agent when considering investing in overseas properties.


They usually place a lot of emphasis


on the sales agents’ credibility, often assessed by recommendations from their social circles.


Regardless, the Chinese market is


so hot that many overseas developers are seeking Chinese partners and


LETTER FROM BEIJING | 35


agents to help them reach property investors. How to identify the right Chinese partners, and build a good working relationship with them has become a big question for the overseas developers. Ying Tong gives some tips and methods to the developers who are interested in this innovative solution:


• Know about their cooperation with other developers • Know about their successful deal records • Know how many activities or how often they would participate, this is to judge how serious they are about promoting their partners’ products • A telephone conversation or interview (an interview is much better if possible) is good to test the business capability and spirit of a team • Create a standardised management system, paper documents and training.


“Mainland Chinese property buyers


spent $18.3 billion on residential property around the world in 2010, generating over $600 million in commission for agents. “The Global Chinese Real Estate


Congress expects international property sales to explode to $50 billion by 2012, which would see over $1.6 billion in commission on offer.” Tong concludes with a big smile.


China Property Buyer Facts:


• 90 million Chinese search for property online


• Less than 1% of mainland Chinese can read English


• China’s property boom has gone international, with strong demand for property in Australia, UK, USA, Canada, Singapore, Malaysia and many more…


• After the USA, China has the most Billionaires


• After the USA and Japan, China has the most Millionaires


• 50% of Chinese international property transactions are in Cash


• By 2015, Mandarin will be the dominant language on the internet


• 60% of China’s HNWI’s & Upper Middle Class are engaged in over- seas investment or immigration


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