According to the Foreign Investment Review Board (FIRB), when it comes to Australian real estate, Chinese investors are buying up big. China was the primary source of foreign investment in Australian real estate in 2013, and this is expected to grow between 15 and 20% in 2015 compared to 2014.
Why is Australia so popular with Chinese investors?
In 2013, Chinese investors bought $5.9 billion worth of Australian real estate, and with this figure increasing year-on-year there is no doubt that Australia is a popular choice for Chinese investors. There are a number of reasons behind this influx of investment in Australian real estate, including:
- Increased wealth among the middle class Chinese population.
- The perception of Australian real estate as a more secure investment than Chinese real estate, especially for children and future generations.
- Superior quality of houses and lifestyle benefits in Australia.
- More migration to Australia.
- Rising house prices in China.
For many Chinese investors, the process of buying Australian real estate is a joint one, with children or other relatives in Australia who can go and inspect properties, while the wealthy family in China provides the finances.
This means that anybody who is looking to target Chinese investors needs to target both sides rather than just focusing on either the Australian side or the families in China.
How to market to Chinese real estate investors
Chinese real estate investors are often purchasing for very different reasons than Australian investors, and this means that marketing effectively to them requires a highly tailored approach.
While most Australian investors are looking for high returns for themselves on their investment, Chinese investors are often more concerned with a long-term outlook and building wealth for their children and other generations to come.
Personal relationships and building trust are essential to the process, and your marketing message needs to be individually tailored to suit your market and their outlook.
With the restrictions on foreign ownership of property in Australia, Chinese investors are only allowed to purchase new properties, which means that land and housing packages and new unit developments are attractive.
If you want to increase your appeal to Chinese real estate investors you will need to know your target market inside and out.
We are experts in marketing to China and we can help you reach this lucrative and growing market to get the results you’re looking for.