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Chinese Invest in Real Estate Outside of China

When Chinese citizens seek to purchase homes or hotels abroad, their actions are categorized as overseas investments. These overseas investments are closely regulated in China, allowing domestic companies to engage in various activities such as constructing factories, mergers or acquisitions.
However, for individual domestic residents, there are limited policies regarding overseas investments, except for those tied to specific purposes. The foreign exchange activities available to domestic residents encompass immigration, inheritance, business transfers, and the recently introduced participation in overseas publicly listed companies.
Let’s analyze the value of Chinese real estate abroad in 2024.

What’s Real Estate and the reasons that push many Chinese to purchase abroad

Real estate represents a type of tangible property, indicating ownership of something that is affixed to a parcel of land. It serves various purposes such as residential, commercial, or industrial, enclosing any assets located on the property.
When considering the reasons behind Chinese investors purchasing real estate overseas, there are numerous factors at play, but the primary ones include:

Education: Statistics indicate that up to 83% of Mainland Chinese, particularly those from major cities such as Beijing and Shanghai, aspire for their children to receive education abroad.

Emigration: The prolonged zero-COVID policy has led many affluent Chinese individuals to choose emigration, taking their assets with them. In 2023, China ranked second globally in terms of high-net-worth individuals, with a notable 10,000 individuals leaving the country. The ongoing domestic real estate crisis further prompts Chinese investors to acquire property overseas instead of in China.

Investment: Affluent Chinese individuals with substantial capital, whether residing abroad or in China, seek real estate as an investment. They acquire properties for rental income or personal use, intending to spend holidays or retire in these locations. Data suggests that 61% of wealthy Chinese purchase overseas real estate with the intention of eventually residing there themselves.

Where do Chinese real estate investors choose to invest?

Despite facing some commercial challenges, the US remains a significant target for Chinese investments. Between April 2021 and March 2022, approximately 10% of the total foreign investment in American residential real estate was linked to Chinese investors. However, it seems there is a trend towards other countries like Canada, UAE or Australia, as ongoing trade tensions are being balanced against the potential gains from overseas investments. The value of real estate abroad in 2023 was concentrated in these countries: Australia, Canada, UK, US, Thailand, Malaysia, Japan, United Arab Emirates, Vietnam and Singapore.

Source: Juwai IQI

How to connect with Chinese real estate investors?

To effectively tap into the real estate market in China, it is crucial to possess a comprehensive understanding of buyers’ purchasing behaviors. Acquiring insights into their preferences across the diverse marketing platforms prevalent in China can significantly aid developers in achieving success in conversions.
The pivotal aspect is China’s digital landscape, boasting a staggering 904 million internet users. Mobile internet users have reached a substantial 896.9 million, emphasizing the investor ecosystem’s heavy reliance on online activities. Here are some strategies:

Establish a robust e-reputation

China’s digitalization surpasses that of the West. Without an active presence on Chinese platforms and the development of Chinese content, your visibility in Mandarin keyword searches will be limited.

Create a Chinese real estate website for Baidu

Upon entering the Chinese market, companies essentially start from scratch. Positive reviews from elsewhere are inaccessible to Chinese users due to the “Great Firewall”. Hence, it is crucial to develop a Chinese website hosted within China. This allows potential investors to glean insights into your company’s profile and the types of properties you offer. Producing content about your properties on various Chinese platforms is recommended to enhance visibility and credibility. Additionally, consider incorporating a chat function for inquiries. Don’t forget to include QR codes linking to your other social media accounts like WeChat, Xiaohongshu (Little Red Book) and Douyin. But why is hosting your website in China necessary? Baidu, the predominant search engine, favors native websites hosted within China over foreign ones. This approach increases your chances of securing a high ranking in Baidu search results.

Backlinks and PR serve as potent marketing tools in China

Incorporating backlinks into your website enhances traffic flow and boosts your search result rankings. Backlinks and PR remain among the most cost-effective solutions for cultivating your e-reputation in China while simultaneously elevating your visibility on Baidu. They contribute to establishing credibility and increasing exposure.

The significance of online videos in the real estate industry

Video content offers an excellent avenue to showcase your offerings and create high-quality material. Given that the majority of Chinese individuals conduct their web research on mobile phones, it is essential for videos and your website to be easily accessible on mobile devices. Online videos are one of the most popular channels used to fulfill companies’ marketing strategies, and they work particularly well on short, informative video sharing platforms such as Xiaohongshu and Douyin. Additionally, consider offering live-streaming sessions.

Attain the top spot in Baidu’s real estate rankings

Once you have established a robust Chinese website, the next step is to enhance your visibility. Baidu, China’s leading search engine, serves as the pivotal starting point. Hence, it is highly advisable to focus on search engine optimization (SEO) to secure a prominent position on the homepage. Identify the appropriate keywords to pique the interest of potential customers and optimize your website accordingly.

First of all you need a WeChat and Red Official Account

In the realm of Chinese business, social media holds immense significance. WeChat, Weibo, Xiaohongshu, and Douyin are the most prevalent social media platforms in the country. Active engagement on these platforms and the sharing of captivating content can propel your reach to millions of potential Chinese investors. Among these platforms, WeChat and Little Red Book stand out as indispensable, reigning as the most widely used in China and among the globe’s most popular apps. It is prudent to familiarize yourself with WeChat’s internal workings and promotional techniques. You establish direct communication with your audience by establishing an official WeChat and Little Red Book account. This avenue enables potential investors to receive continual updates about your company’s developments.

By analyzing the value of Chinese real estate abroad, we can see that, on a global scale, China emerges as the leading contributor to the Real Estate market sector, achieving the highest value in 2024. The Real Estate market in China is projected to reach an impressive value of US$135.70 trillion by 2024, accompanied by a notable rise in demand for high-end luxury properties in major cities. (Source: Statista)

Long Advisory digital marketing agency in China

Long Advisory supports Western companies in China through digital marketing. In fact, our experience has led us to believe that today, the best and most convenient approach to making your brand well-known in China is through a digital approach. Furthermore, thanks to our know-how, we know how to make your brand known to potential Chinese consumers. With the effective coordination of Long Advisory, your company will see a new rise in the largest market in the world: China.

Long Advisory is a digital marketing agency specializing in developing digital marketing solutions tailored for the Chinese market. 

Interested in expanding your brand in China? Contact us for more info and details at info@longadvisory.eu

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In recent years, the Chinese economy has experienced significant growth and development. Following the global crisis brought on by the COVID-19 pandemic, China made
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