Top 10 things that Chinese buyers want to know!admin
China is now the world’s largest and fastest-growing market in terms of online retail and global real estate investment. We scope out the 10 most important criteria for Chinese buyers when purchasing property abroad, as well as examine Chine’s $1.7 trillion online retail market.
Education: Some growing ques for an overseas education is fundamental driver of Chinese demand for overseas property. Beyond seeking homes near local schools or universities, Chinese will want to know its ranking, quality (e.g. class sizes, exam results performance, etc.), application process, and fee structure.
Visa Rules & Regulations: Migration is a key theme underlying Chinese investment on overseas property. With a wider range of long term visitor and investment visas for Chinese, they will be seeking details on what they can apply for, and what they are entitled to in your area of coverage.
Ownership Rule: Transaction fees can add up to 10%-15% of costs on top of the purchase price, which Chinese buyers may be unaware of. Be upfront with extra fees involved, such as registration taxes, stamp duties, council taxes, appraisal fees, and mortgage charges, to name some.
Market Trend: Property is one of the most tried and tested paths to wealth in China. Prices in Beijing alone have increased 6x in ten years and that means Chinese buyers will seek granular detail on market trend (e.g. supply, vacancy, recent price growth and recent deals) to get a better gauge on the local market.
Development Potential: New roads and rail lines across China have been a major driver of house price growth. With this in mind, Chinese buyers will desire to factor in any new local infrastructure projects or large corporate investments, since they can impact the long-term growth potential of their investment.
Yields: With yields falling below 2% on residential properties in both Beijing and Shanghai, Chinese buyers are targeting better returns overseas. So, be prepared for questions on your property’s gross and net yields, as well as average yields for the area.
Citizenship Privileges: Emigration is a goal for any Chinese looking to invest overseas, hence they will inquire about benefits they are entitled to, such as access to healthcare, schools, and passport power – all which they expect you to already know and be able to enlighten them.
Sale Process: Buying a home can be an onerous task, even more so for Chinese facing foreign sales processes abroad. So, do prepare a clear outline of the stages, steps, and timelines involved when buying international property.