Chinese properties buyers looking for properties overseas

July 11, 2010 - PRLog -- “I think you will start to see more strength in the Chinese currency and that will give further impetus to look elsewhere for investments,” said James Moss, managing director of upmarket UK real estate services company Curzon Investment Property.

“The whole economic situation (in China) is prone to change and so people are looking for a safe haven for their money,” said Moss, noting his client base was now 75 percent Chinese, from 95 percent expatriate UK investors five years ago.

For a graphic that shows Chinese residential investment in London and Singapore relative to other domestic and overseas buyers, click link.reuters.com/huj74m

Data from real estate broker Knight Frank showed more than one in 10 new-build residential properties in London were sold to Chinese or Hong Kong buyers in the year to March, the highest share of the market by any offshore investors.

In Hong Kong, a fifth of luxury apartments are purchased by mainland Chinese, said Alva To, head of consulting for North Asia at property broker DTZ, citing industry figures.

Developers also hope Chinese will tap new frontiers, from Indonesia's Bali to Dubai. Dubai Pearl FZ LLC plans to market its upmarket homes in Beijing and Shanghai, while Indonesia's PT. Dua Cahaya Anugrah also plans to market its latest Bali beach villas across China.

“As Asian domestic markets show their own signs of difficulties, Chinese buyers in particular are keen to invest in markets they regard as more secure than their own if they can get through the regulatory minefield and release the funds,” Liam Bailey, Knight Frank's head of residential research, said.

“I'm looking for investment opportunities outside China to save enough money for my daughter when she grows up,” said Tracy Ma, 38, a Chinese executive who owns an apartment in Shenzhen in China's south, neighbouring Hong Kong.

“Property is the safest bet and it's great as a long-term investment. For starters, I'm looking at Hong Kong because it's close and rental yields are pretty good there,” Ma said.

China's gross aggregate savings rate now tops 50 percent of gross domestic product, by far the highest of any big economy, with disposable income among the urban population rising 10 percent in 2009, official data showed.

More than 90 percent of China's households own the home they live in, while more than a quarter own a second property, a report from Asian brokerage CLSA said.

It's not only London house-sellers that have caught the eye of the Chinese. In Asia, developers such as Hong Kong's Sun Hung Kai and Singapore's CapitaLand, have also marketed their swanky flats to Chinese buyers.

Pierre Gervois, CEO of China Elite Focus Ltd, Shanghai's leading marketing agency targeting wealthy Chinese investors said " There is a new generation of Chinese investors, looking for luxury properties, for a minimum of $3M, ready to buy quickly in major cities like New York, Paris, London, or Moscow."

A DTZ report in late May showed Chinese buyers made up 17 percent of foreign property purchases in Singapore in first-quarter 2010, making Chinese the third most prolific overseas buyers in the city-state.

“They want their capital to be global, not just restricted in China. It's a kind of diversification of risk,” DTZ's To said.

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China Elite Focus is Shanghai's leading marketing agency focused on the needs of wealthy Chinese consumers. www.chinaelitefocus.com