How to sell properties to Chinese real estate investors?
Chinese are the nation of savers and although they are the biggest consumer power in the world, they like to secure their money in investments. Wealthy people in China invest in many assets, but their favorite has always been real estate. But the recent real estate crisis and problems of the biggest real estate company in the country – Evergrande, made Chinese property buyers question their choices and look more eagerly for opportunities abroad.
But, you might be wondering how to sell real estate properties to Chinese investors? In fact, there’s no secret: you will have to adapt to Chinese property buyers in order to do business with them. In this article, we are going to give you some tips and advice to sell your properties to the Chinese.
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The real estate industry in China
The real estate sector is a key part of China’s economy, accounting for around a quarter of China’s economy is facing problems. According to Reuters, new home prices are expected to fall 1.4% in 2023. Property sales were seen slumping 24.5% in 2022, a far bigger drop than the 10% fall forecast in the May poll. China’s real estate sector is facing a crisis since regulations in 2020, resulting in developers’ problems to finish some projects in the country.
Data collected by Reuters and an overlook of China’s situation, however gloomy for China’s economy, brings good news for foreign interest groups, that are seeing the that the interest in foreign properties in the US, Australia, or Europe has grown dramatically over the last years.
In recent years, China has seen tremendous volatility in overseas property investment. In a country with a population of 1.3 billion citizens, its GDP grew by about 7% and the potential market for overseas real estate investors is boundless. Investors are looking for better opportunities in terms of environment, work, immigrant investment, and educational opportunities.
Who are Chinese real estate buyers?
With their domestic economy becoming increasingly stronger, Chinese investors have become a formidable force in international real estate markets. While some remain within China to buy properties there, others are looking abroad for ventures beyond the country’s borders.
Bloomberg projects that these property buyers will be at the forefront of foreign investments over time due to increased economic growth and the advancement of China’s GDP. In this blog post, we explore two key types of Chinese investors: those who live outside and purchase overseas as well as those who live in China but are looking for residential properties overseas.
Why do Chinese buyers engage in foreign real estate investments?
There are many reasons for Chinese investments abroad, like the zero-covid policy, increasing housing prices in Chinese cities, the growth of the middle class, and the growing lack of trust in Chinese authorities. In this post, we will focus on three main reasons; education, investment, and migration.
Education
Mainland China is experiencing a wave of students seeking foreign education, with 83% dreaming to have their children study abroad. As the competition for university spots in Chinese schools continues to be fierce and job opportunities are widely limited locally, overseas schooling has become an attractive option – not just because it sets them apart from others on paper but also allowing young people to immerse themselves culturally and internationally.
Chinese investment
Wealthy Chinese are making big investments in the property market, especially in residential properties, with 61% buying real estate abroad as a lifestyle choice. Whether it’s for rental income or to spend time there on holiday and potentially even for retirement purposes – these savvy investors have their eyes set on securing long-term wealth through global investments.
Emigration of wealthy Chinese
Chinese high-net-worth individuals are becoming an increasingly common sight overseas as the Covid pandemic and economic setbacks lead to a mass exodus of wealthy citizens. In 2022, China saw 10,000 affluent people departing – with further migrations expected in the coming years – thus placing them firmly in second place worldwide for high-net-worth immigrants.
A soaring real estate crisis is also contributing to this trend with investors choosing dividends from foreign capital instead of their native country’s boundaries.
Preferred investment locations
Even after some commercial issues, the US is still one of the major destinations for Chinese investors. Between April 2021 and March 2022, Chinese buyers accounted for roughly 10% of total foreign investment in U.S. residential real estate, spending around 6.1 billion dollars. Chinese residential real-estate investments are highly focused on the Pacific Coast, and nearly 40% of Chinese buyers have already purchased in California.
However, Chinese investors are shifting toward alternative countries like Canada, Australia, Singapore, Malaysia, or Italy amid concerns about tense trade relations.
The United States: The most popular destination for foreign investors
The United States is still China’s largest real estate investor, but it is also the most popular destination for Chinese investors. The east-west coast is often the most popular area, and New York is currently at the top of the list.
However, it’s not only Chinese investors that are buying properties, but also Chinese companies that are investing in overseas offices. In general, overseas investment returns are better than investing in China. The US attracts a lot of foreign investors and the Chinese are investing heavily, especially in major cities like New York, Miami, and Los Angeles.
Australia: A promising market for Chinese property buyers
Due to its geographical position, lifestyle, popularity, tourism, and weather, Chinese investors are particularly shifting their investments toward Australia’s real estate industry.
China owns 2.2% of Australia’s real estate industry, accounting for 91.8 Australian dollars in 2021. If we look a the graphic, we can see that China Merchant Group’s investment in Propertylink (an Australian company) amounted to 280 million Australian dollars. The industrial property was located in Sydney, along with most other leading real estate investment transactions in that year.
OFDI (Outbound Foreign Direct Investment)
As the Chinese strategy for international expansion is under constant development, China’s outward foreign direct investment (OFDI) increased dramatically with Chinese enterprises’ growth. China’s outward investment continues to play an important role in the global FDI market, ranking third behind the US and Japan in terms of investment flows.
Chinese people do realize that investment in bricks-and-mortar properties is the best way to take advantage of their assets, particularly in well-developed countries. When it comes to residential developments this is not surprising that with rising standards of living, priorities around education and lifestyle have become the main factor of acquisition for Chinese investors.
Some tips and advice to sell real estate properties to Chinese buyers
First of all, if you’re a real estate developer or property owner, you should take into account Chinese investors’ state of mind. Focus more on promoting real estate properties that have integrated innovations and new technologies.
In order to really start selling real estate to China, it is important to have a very thorough understanding of buyers’ purchasing habits. Gaining insight into what they are looking for across various marketing platforms used throughout China can be very helpful for you.
The most important thing to know is that China’s secret is its “digitalization”. With an investment of 900 million U.S. dollars and an Internet penetration rate of 70%, the entire investment ecosystem has been focusing on online platforms and tools.
Reach out to China’s Real Estate Investors: Online Leads/prospect Generation
China now boasts a 70% internet penetration rate with over 940 million Chinese users connected online. There are approximately 350 million middle-upper-class individuals active online in China every day. So, if you want to reach China’s middle and upper class, you will need to develop a comprehensive digital strategy and improve search engine ranking. Why? Because the Chinese market is unique & has its own internet websites, e-commerce platforms, and social media.
Create a Chinese website
Having your own website in Chinese should be at the core of your digital strategy. You have to know that the majority of the Chinese population is not fluent in English, so if you don’t have a website written in simplified Chinese, they won’t even look at it.
Moreover, this is also an important key for your ranking on the search engine Baidu. No matter how strong your reputation is in the United States, remember that when your company enters China, you are essentially invisible. All your positive reviews are inaccessible due to the “great firewall”.
Therefore, building a good Chinese website is very important, so that potential investors can understand your company’s situation and the type of property you provide. Remember about optimizing your website for mobile devices, as most people in China use their smartphones to search the web for information.
You should also include backlinks to your website to increase website traffic and your rankings in search results. Keep in mind that some overseas investors may not have the chance to see the property they are investing in. Therefore, it is crucial to provide a wide range of asset profiles with very concise details, so investors can better understand what they are getting.
Lead generation: Contact form
The two main ways to take advantage of your website is to use a ‘lead generation form’, in China it is also advisable to embed QR code links to drive traffic directly to your WeChat account as an additional method of contact for those interested to buy property.
You can also note the benefit of the ‘Baidu Live Chat’ Tool. This allows you to make contact while investors browse your content, portfolio, etc. Rich content equals longer time spent browsing and a greater likelihood of contact via live chat tools.
To sell your properties to Chinese Investors: focus on Baidu
After creating a Chinese website, you need to start to increase your visibility to create interest. As the most popular search engine in China by far and the 5th most consulted website in the world, Baidu is simply a step you can’t skip in China if you want to sell real estate. You have to know that 75% of all property and investment research is carried out via Baidu. In order to master Baidu, you will need first to optimize your website for it to be ranked on the first results of Baidu.
Moreover, you can also display and advertise your company as Baidu is like an open window on the internet. Statistics show that if you do not appear on the first search page, you may lose 65% of your potential internet traffic.
Therefore, it is strongly recommended to do search engine optimization in order to rank on the home page. Find the right keywords in order to be ranked higher on Baidu. This Chinese website will be your “storefront desk” in China, and PPC is also a great way of complementing the ongoing search engine optimization of real estate companies.
This will keep you in the top spot for paid results, while real estate will still provide a good ROI. The combination of these two approaches works best for PPC and was initially more important when you entered the market, and SEO became more viable after months of activity.
In order to rank on Baidu, follow these tips:
- 8-10 pages
- Keyword repetition in line with selected keywords
- Internal links to other relevant pages
- Clear and interesting content
- Put QR codes on your social media accounts and other places where to find you
If you want more information about Baidu, you can check our complete guide on Baidu SEO. Also, if you have more inquiries or questions, do not hesitate to contact us.
Social media to promote your Real Estate agency in China
As the most popular social media application in China, WeChat is a must-have if you want to conquer the Chinese market. Thus, it is mandatory to become familiar with the internal operation of WeChat and its promotion methods.
By setting up an Official WeChat account, your audience will have more direct contact information. It will also allow potential investors to see your company’s updates, pictures of your properties on your WeChat moments, etc.
You can also start your own WeChat group and offer additional information there, including interest rates, financial regulations for Chinese buyers (if there are any), house prices with discounts, or the newest investment opportunities, before you list them on the website.
For example, any new properties you’ll have can be shared on your official account so that your followers can see them instantly, without going on your website. WeChat is also the best way to establish a relationship with Chinese investors. WeChat is the first step toward conversion.
Almost every website in China is accessible via QR code, so include your QR code on your WeChat account so that potential investors can directly follow your official account.
The importance of e-reputation in China
Even though your company is already well established in your country, Chinese consumers are still going to be cautious. In fact, you will have to take care of your online reputation and use digital tools to increase your visibility, promote your company and gain their trust.
China news sources such as Sohu and Fung Fung are the places where investors can browse for information. You can also create topics on Baidu Tieba or Zhihu, popular forums and Q&A platforms in China, and start talking about your properties. If you are not active on Chinese social media and have not yet created Chinese content, you won’t be able to reach Chinese potential clients. So, if you want more information about e-reputation in China, do not hesitate to contact us directly.
We can help you with selling real estate properties!
As specialists in the Chinese market with over 10 years of experience, we basically know all the strategies in order to succeed in China. Over the years, we were able to enhance our services and strategies in the Chinese market.
We have had several experiences in the real estate industry, as well as many successful collaborations. However, all companies are different and require a specific approach. So, do not hesitate to contact us so that we can discuss your projects in a free consultation with one of our experts, to give you the solutions that you will need.
I have property in SA for sale.
Thank you for these information.
I would like to Market the Real for Estate Miami FL USA to Chinese Investors.
Do you think it can works ?
What is the minimum investment ?
Hi , It can work yes, We can start at 1000$ for promotion, contact us if you are interested.
I have a property in the Dominican Republic for sale 13 bedrooms on the beach was a hotel 400-500,000 USD
It is more for Companies, because you need a minimum investment … as described. 😉
How to sell Properties on Forums and WeChat ?
Do you offer this Services ?
How much do you charge ?
Hi Etienne,
we can promote your Property on WeChat Real Estate Group and on Real Estate Forums / Plateforms.
We offer these Service.
Cost start at 1000$
Hi
The Cost is 1000$ total or per month?
What service does it include?
What Chinese Rich Peopleare looking for? 1. better returns elsewhere around the globe.
2. Chinese purchases of residential properties have increased from $11.2 billion in 2010 to $28.6 billion in 2015 (33,000 homes).
The United States real estate market has become a preferred destination for Chinese capital. Chinese business Men have also been particularly active in Australia, the UK, and Canada, Dubai, Thailand…
Record numbers of Chinese buyers flock to the UK housing market. This is What Chinese Investors Are Looking For in Real Estate
So, what are Chinese investors looking for in real estate?
We have put together a list of the things Chinese buyers specifically look for in the real estate they purchase.
• Education – proximity to top-notch high schools and universities
• Cachet – conveyance of wealth through a well-known location
• Rental – investment return through rental income
• Visas – regulations benefit Chinese tourists, investors or migrants
• Value – price comparison versus Chinese real estate
• Financial Security – investing for future generations
The Chinese government has loosened capital restrictions, effecting the country’s Rich SItuationa to move more money overseas.
Thank you for your feed back. Very informative. 😉
With luxury markets slowing, Real Estate sellers must demonstrate the long-term potential of their homes to attract Chinese buyers, they buy Cash, and can buy several Properties if you help them to find a way to take their money out of China
Really good Business
Hello , 您好, how are you doing? I am Vincent Luhur from Indonesia. I would like to make an acquaintance with you. I am in business of real estate marketing agent, RE/MAX Golden Star, Jakarta, Indonesia. Perhaps we could work together in case if you have clients who want to invest in Indonesia in the future. WeChat: (62855)7894736
Dear Sir/Ma
We can provide you a loan up to $25M PLUS or MINUS for your projects. But your business must not be sited in prohibited countries and prohibited businesses. Interest Rate Is 1.5 Percent
Greetings
Tom,
Lahza Al Tayer Group.
Hi, I want to market condotel and condominiums, residential to commercial properties to Chinese Investors. I am from Philippines. May I know for the packages. Thank you.
Yes of course 🙂
for investors and buyers, there is a general feeling of insecurity in the Chinese domestic market, a number of factors contributing to it, including; the instability of the stock markets, the lower value of the RMB, the limits of the state regulatory framework and the lack of property rights.
We invite all interested project owners and investors to our project financing/investment programme.
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Investment Corporation of Abu Dhabi is the premier alternative asset management firm in the Middle East. We focus on generating sustainable, superior performance for all our stakeholders, growing capital and value through world-class expertise and adherence to the following core principles: We wish to re-invest through project funding in investment loan to third party investors, project owners on a 2.5% interest rate per annum on long term investment projects that can generate up to 10% ROI within the period of investment.
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Chief Investment Officer
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Memeber, Board of Director
Dear Sir
I am from Madagascar, I am developing a real estate project on 400Ha of land in Nosy be, small island in the north of Madagascar. I am searching an investor who can work with me for developing this project.
My whatsapp number is 00261325215570.
I am always flexible for any form of partnership
With my best regards
Marson
Hello,
We are an investment firm, and we have developped a special fund to invest oversea property. I would like to be inform of different projects, and prefer to speak with real estate developers directly.
Send me your project with information.
Intérested in real estate projects (retailparcs) in Belgium ?
Interested in retail parcs in Belgium ?
Mr. Liu,
We have residential projects in the Bahamas. We have a project of 82 homes in a project with a community beachfront, there will be 58 single family homes of approximately 176.5 sq meters in the $US 900,000 to $US 950,000 price range and 24 duplex style homes of approximately 1400 sq meters in the $US 770,000 to $US 820,000 price range. In addition to being the closest foreign country to the United States other than Canada and Mexico, the Bahamas has a very well-established path to permanent residency for purchasers of real estate of $US 750,000 or more.
Troy Johnson
How to contact you ??
Hi ….
We are one of the Huge PROPERTY DEVELOPMENT company in Sri lanka the name call HARANI PROPERTY DEVELOPMENT.
We do any type of land and building.commercial purpose and industrial.Hotels.Manufacturing etc.
For leace.renting.selling.outrite
Long leace for chinesh and other countries please contact us.
Email..muralico24@yahoo.com
Contact.0094721340226
We are a corporate services firm in Cy.
Looking to expand to properties sector with golden visa European programs (from Cyprus and Greece) been offered to outside EU investors.
Peticullary I was thinking about running add campaign in Sanya whereas I was told , lots of Chinese local tourists goes.
I believe reaching people on free time with that product would be smart idea.
Hello
My name is Fiona, I am Chinese and with my partners we have developped relationships with banks (Chiense banks), so we can resell some services/real estate to their VIP clients.
I wish we can collaborate with serious foreign real estate developers (no agent)
Send me your website (Chinese please) or WeChat
Land/property on sale in Honiara City, Solomon Islands. If you’re interested contact me.
My name is Kenneth Dean and I have a piece of property with 6 buildings on it . It was a shopping center . It has a fully functioning grocery store in one of the builds 40k feet . Every building is between 30k and 40k feet . Each building is 3 million and the grocery store and building fully functioning is 6 million . It is located a hour from Kansas City .
Land/property on sale in Honiara City, Solomon Islands. If you’re interested contact me. My email coastalonline2@gmail.com.
I am an Agent from Nigeria and i am looking for investors who are interested in buying out rightly Landed
properties here in Nigeria in Abuja , Lagos Delta State respectively from
United States , United Emirates , China , Australia India and other countries who willing to establish large projects like Hotels and Manufacturing Industries ..
I work with a Real Estate Firm Comehomes and Properties Nigeria Ltd.
Please do endeavour to give me a reply as i will be expecting from you .
I am a private owner of a Teak tree farm we developed in South America . Due, to medical reasons we are looking for buyers. Can you advertise this property through your Chinese network for business people looking for investment opportunities? How do we know this is a valid site, and not be scammed ?
I am a private owner of a Teak tree farm we developed in South America . Due, to medical reasons we are looking for buyers. Can you advertise this property through your Chinese network for business people looking for investment opportunities? How do we know this is a valid site, and not be scammed ?
We already contact you
Hi and good day everyone!
Due to pandemic there a lot of property for RESALE in the Philippines, you might interested to be a broker/buyer.
condo units are available under bank financing and condo developer in house financing. High commission for international brokers who can sell the properties.
Hello, I own an tropical Island consisting of approximately 200 acres and a 1,700 +/- acres on a near by island on the Pacific Ocean in the Pearl Islands in the gulf of Panama. Both properties have long white beaches with access to fresh water. The Island has a natural harbor. Both properties are zoned multi-use, tourism, commercial, fishing, and residential. Both are within an hour by boat of the best sport fishing in the world. Both properties have clean free title ready for transfer. The islands title is insured by Stewart Title Company (an US Title company).
I wish to market the properties for sale separately or together in the PRC.
I’m currently constructing websites for the properties. This exsisting website site is for the Island only; http://www.isladepuercos.com
Can your company help me market these properties? And if so what services do you recommend?
Thank you
M J Ellis
I have 17 acres to sell in New Zealand. One block is 7 acres, which is near a major city, an ideal for real estate devleopment.
Hi . My name is Alyona .
I’m a Real Estate Consultant in Dubai .
Now it’s a right time to invest in Dubai property and take the highest ROI
Hello. My name is Gerald Kommo
I am a commissioned agent authorised to look for buyers of very prime land in the Kilimani and Karen areas of Nairobi, Kenya.
Both properties are very ideal for commercial development, real estate or Institution
Interested buyers or their agents can reach me at gnkommo@gmail.com or +254 164344
I have a property in Colombia, south America. It a property near the Capital in the town called Chia which is home of many universities and a gourmet corridor. It has all the permits to build any type of construction. It has access to an important road.
It is about 2000 mts. Do you think it is possible to sell it to Chinese investor?
I have a property in Colombia, south America. It a property near the Capital in the town called Chia which is home of many universities and a gourmet corridor. It has all the permits to build any type of construction. It has access to an important road.
It is about 2000 mts. Do you think it is possible to sell it to Chinese investor?
Thanks
Land for sale in panay island and Boracay island ranging from 1,000 square meter up to 200 hectars at a very cheap price per square meter. thank you.
for more inquiries please call or send message; land line:6336 268-3836
cp# 63999-306-4599
63945-288-2868
email: advinculaserandy6061@gmail.com
hoping to hear you soon.
truly yours,
Andres Advincula
Hi,
I’m an International Sales Director in Philippines. Do you prefer to sell our Condominiums ? I can give you a high rate commission in every Sale. I’m working with SMDC ( Top Leading Real Estate in Philippines ) and most targets are Asians and Westerns. They make for business like Airbnb and Long term rent. Chinese people has a big investment like (POGO) Philippine Online Gaming Offshore and etc.
Hello,
My name is Aiga. We are the leading developer company , with over 11,000 units sold in Dubai, UAE are open to have a business cooperation with the real estate agents all over the world, who are willing to sell the company’s projects in Dubai. All the terms & conditions/ commission structure will be discussed. PM me for further information.
Thank you and good luck.
We have a project.
St Regis Residences | Atlantic Drive Estates | Lot L-6
Price: $2,950,000
IN USA PUERTO RICO
Contact me please to know your conditions
Saling agricultural land in fiji nausori 5.5 acres good for ginger and cash grow
selling properties to Chinese real estate investors is such a breeze! All you have to do is wave a magic wand and voila, they’ll be throwing money at you left and right!
But seriously, here are some tips for selling properties to Chinese real estate investors:
Know your Product and bring ROI: Chinese real estate investors are looking for properties that offer a good return on investment, so it’s important to understand the market and identify properties that meet their criteria.
Build relationships & Trust: Building relationships with Chinese real estate investors is key to selling properties. Attend industry events, join online forums, and network with investors to establish trust and credibility.
Market your properties effectively: Effective marketing is key to attracting Chinese real estate investors. Use social media platforms like WeChat and Weibo, and consider hiring a local marketing agency to help you reach the right audience.
Be prepared for LONNNNNNNGGGG negotiations: Chinese investors are known for their negotiating skills, so be prepared to negotiate the terms of the sale.
Be patient (success is not in 3-6 months) Selling properties to Chinese real estate investors can take time, a lOOOOOOOT of time. Be patient and persistent, and be willing to adapt your approach to meet the needs of the market.