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Chinese Buyers Continue to Dominate the Overseas Property Market


Chinese Buyers Continue to Dominate the Overseas Property Market

 Are you looking to sell overseas property fast? Then you should definitely consider marketing your overseas house, apartment or villa to Chinese buyers. Wealthy Chinese nationals dominate the overseas property market completely.

The Chinese investment in the overseas property market in 2016 was as high as $33 billion, which was up by 53 percent from a year ago. The Chinese continue to buy overseas property online despite strict capital controls and other restrictions imposed by the Chinese government.

The Chinese government is worried that too much money is leaving the country and is trying everything possible to curb the outflow of capital into the overseas property market. However, the buyers have so far managed to work their way around the capital controls through their ingenuity and innovative spirit.

What compels Chinese investors to buy properties abroad? One, many Chinese rich want a way out of China, where life is too stressful and the pollution can be really bad for health.

 Secondly, they already have their children studying or working abroad and want to be close to them. Third, they have had a bitten experience back in 2015 when the Chinese stock markets crashed, wiping out trillions of dollars of investments. The Chinese rich see investing in properties abroad as a way to protect their financial assets.

Fourthly, The Chinese have always dreamed of living abroad, in countries such as Spain, Portugal and Australia, which have a much superior quality of life, and where the lifestyle is more relaxed. For this reason, they are willing to do anything it takes to buy holiday homes abroad.

As Rupert Hoogewerf, chairman of the Hurun Report explains, “Prices in major Chinese cities have risen so fast in the past year that an overseas house seems to offer good bang for your buck.”  

That’s why, if you have an overseas property for sale, targeting the Chinese buyer specifically would be the smart thing to do. These are wealthy, cash buyers, who don’t waste any time in getting through the property transactions if they happen to like your house. They pay fast, complete the formalities and get the property off your hands quickly.

However, is there a reason to be cautious because of recent restrictions on overseas property investment imposed by the Chinese government?

David Green-Morgan, research director for JLL in Singapore, says in an interview with The Financial Times, “We believe that Chinese investors will continue to be major movers of capital into global real estate for many years. But a similar increase in 2017 may be challenging given the recent discussion about China monitoring its capital outflows. Many of the biggest players already have a significant amount of capital outside the country, so their investment decisions are not so reliant on Chinese governmental scrutiny.” 

Where are the Chinese buying? They are buying a lot of properties in the United States, Australia and UK. Recently they have turned their attention to overseas property hotspots such as Spain, Portugal, France, Greece, Turkey, Malta, Cyprus, Italy and Bulgaria.

 




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