Focus

Flush Beijingers set sights abroad

By Shen Jingting (China Daily)
Updated: 2010-04-19 08:06

Demand for properties overseas has been increasing with international realtors promoting their apartments and condominiums at events such as the recent Beijing Spring Real Estate Trade Fair.[ Zhang AIdong / For China Daily]

A recentinternational trade fair hashighlighted the strong local demand for homes in foreign countries

There is a popular saying among Chinese girls that it is better to find a wealthy husband than a well-paid job, but 29-year-old Zhao Song takes a different stance.

"I believe it is better to find a profitable investment opportunity than to get married to a rich guy," Zhao said.

Zhao said that in the past three years, she has invested in more than five apartments in large cities that include Beijing, Shanghai and Hangzhou. Property values have skyrocketed, Zhao said, but declined to reveal how much money she has made.

The successful investor does not restrict herself to domestic cities either. Her next stop, she said, will be resort houses in Southeast Asian countries, or apartments with good educational resources in the US.

"I will buy a house in Malaysia this year. The average price should be less than 20,000 yuan per sq m in the capital city, which is cheaper than Beijing," Zhao said.

"In the long run, buying a house in the US will be a necessity since my son can get a good education there."

In comparing her houses to men, Zhao said properties are more stable, loveable and reliable.

And Zhao isn't alone in her plan to buy abroad. International realtors at the Beijing Spring Real Estate Trade Fair recently witnessed an increasing demand from Chinese property purchasers.

More than 140,000 people attended the four-day trade fair. Among the 150 projects, 60 were in overseas countries - the highest number for the fair so far - according to organizer Zheng Xiangdong.

Jacqueline Kannan, senior sales consultant of Absolut Real Estate, a property firm based in Phuket, Thailand, said the Chinese market is particularly strong.

"People from Australia, South Africa, China and Russia are our four major groups of customers. Around 20 percent come from China," Jacqueline told METRO.

Her project at the fair was called "YooPhuket" in Phuket, Thailand. Before the trade event in Beijing, she had promoted the company's apartments in Hong Kong and Shanghai. She said there are still 150 apartments available for Beijing purchasers.

"Chinese buyers are often experienced, perhaps because many already own a second house," she said.

"They have another unique characteristic, which is that they are usually younger than others. In other parts of world like Australia and South Africa, they tend to be older."

Some are lawyers, architects and designers, Jacqueline said. They might come to use it for a week, or a month every year, but most of the time it is rented out.

She pointed out that her prices had an advantage over mainland properties. The starting price of a Phuket condominium could be as low as 800,000 yuan, at about 20,000 yuan per sq m, which is lower than similar real estate projects in Beijing and even in China's tropical island province of Hainan.

Alfonso Hsu, senior manager of Concord Adex Inc, a real estate developer in Canada, said more than 1,000 Chinese clients have registered and expressed interest in buying his apartments.

"This is the first time we have presented a project in Beijing. Even before we came, we saw great potential in Beijing buyers," he said.

Hua recalled that last year more than 90 percent of mainland buyers came from Beijing. They bought 30 apartments in Concord CityPlace, a project located in Toronto's CBD area.

The remaining buyers came from other large wealthy cities, such as Shanghai and Guangzhou.

"The major reasons they bought apartments in Toronto was to provide accommodation for their children or to diversify investment risks," he said.

Hsu's apartments range from between 60 and 140 sq m in area, with an average price of 50,000 yuan per sq m.

He said apartments of a similar standard in Beijing's CBD area might top 80,000 yuan per sq m, but are only owned for 70 years.

Though China's central government has strict currency control regulations, Hsu said his mainland buyers managed to resolve the hurdle in ways he preferred not to know.

Min Yudong, a consultant from Presidential Inc - the largest Chinese real estate company in the US - said he discovered two interesting traits of Beijing buyers at the Beijing trade fair.

"They usually ask how much it is for each square meter. In America, we just want to know how much it would be for the house," Min said.

He also said Chinese purchasers care about whether the apartment is located in a CBD area. Conversely, wealthy foreigners rarely want to buy in central business areas.

Tina Wang, another consultant from Presidential Inc, said about 10 percent of her house buyers were mainland executives.

"They buy homes in our Irvine project because some of them believe Los Angeles is a good starting point for a business in the US," Wang said.

She said they firstly promote "Made in China" goods from the coastal city and then gradually expand into other areas of America.

Wang said Irvine has fantastic educational resources, such as primary schools and colleges, which she noted can play a major factor in the decision-making process of wealthy Chinese buyers.

The price of her Irvine project stretches from between $590,000 and $3 million, with ocean front houses starting at $1.5 million, Wang said.

"Money is not a problem for mainlanders," Tina said, adding that most of her Chinese customers paid in cash and few asked for a discount.