ManyChinese entrepreneurs have benefited from China's digitalization, both in termsof industry and attractiveness worldwide, following China's economic growth. Many Chinese families now enjoy the benefits of a rising purchasing power and are part of China's middle or upper classes because of their education and work. With increasing assets, more people are investing in real estate, both China as well as worldwide. You might wonder how to sell the property to Chinese investors. There is no secret about it: Chinese investors will expect you to adapt to do business. We will give you some advice and tips to help you sell your real estate to Chinese investors.
China'sreal estate market
The realestate sector in China is a vital part of China's economy. Thelong-lasting boom in investments in real estate properties has been due to gradual market opening and government stimulus over the past decades. The total real estate market sales reached nearly 16 trillion yuan in 2019, accounting for almost 10% of China's GDP.
China and its increasing number of millionaires (andeven billionaires)
Thisphenomenon can be attributed to the increasing number of billionaires andmillionaires in China. Credit Suisse estimates that China had 4.4 million millionaires worth $4.4 million, second only to the United States. The trade war with the United States had a significant impact on China's economy, but the number of millionaires in China grew by 158,000 over 2018, to 1.58 million millionaires by 2020. They had personal wealth exceeding 10 million yuan in China. They are mainly from the largest cities in China. Hong Kong, for example, is home to the largest concentration of millionaires in the world (in terms of density).
Chinese investors' love for real estate properties
Chinahas experienced tremendous volatility in the past few years when it comes tooverseas property investment. China has a population of over 1.3 billion people. Its GDP grew by approximately 7%, and there is a vast potential market for overseas real estate investors. Investors are seeking better opportunities in terms of work, environment, immigrant investments, and educational opportunities. Chinese investors are looking for better options to purchase real estate properties in other countries, especially as China's real estate prices continue to soar.
China'srapid development and globalization have also benefited the real estate market.The foreign investment of Chinese companies has seen rapid growth over the past decade. It reached its peak in 2016 with more than 196 billion dollars outflows, and it declined during the Covid-19 pandemic. China ranks just behind the United States as the largest foreign investor.
Growing Investment Into Foreign Real Estate
China'soverseas investments were a way to boost its economy and leverage its economicpower to expand its reach abroad. The Belt and Road Initiative and Beijing's "Going Out" strategy were highly encouraging. Their purpose was to encourage foreign investment as well as real estate investments.
Here are some tips and advice for selling realestate properties to Chinese investors
Itwould help if you first considered the mindset of Chinese investors. It wouldhelp if you were promoting properties that incorporate new technologies and innovations. It is essential to understand the buying habits of Chinese buyers to sell real estate to China. It can be constructive to gain insight into what buyers are looking for through various marketing platforms in China. It is important to remember that China's secret sauce is "digitalization." The entire investment ecosystem is focusing on online platforms, tools and has invested 900 million U.S. dollars.
Via John Wang, agencychina, chinanews
