Are Chinese Buyers Snapping Up All The Luxury Overseas Property?

  • 13 years ago
  • Uncategorized

Many reports over recent months have pointed to a surge in wealthy Chinese buyers snapping up luxury overseas property.  And, this influx of Asian buyers has been seen as one of the main reasons for sharp rises in prime property prices.

However, recent research has found that this may actually not be the case after all and that Chinese buyers are having less of an impact than reported.

Chinese buyers having a ‘minimal impact’ on price of luxury overseas property

International property company Savills recently reported that Chinese buyers are actually having a minimal impact on property prices in London.

Savills head of research Yolande Barnes said: “If the money from China were to start flowing into London at the same rate it does from billionaires in other countries, we would expect the value of ultra-prime London properties to grow by as much as 15 per cent. The issue at present is that Chinese buyers aren’t taking, or can’t take, their money out of China.”

Canadian survey points to the truth

A recent survey in Vancouver could explain the discrepancy between the view that Chinese buyers are pushing up the prices of luxury homes and the reality of the Savills research.

Vancouver is reported as being one of the top choices for wealthy Chinese investors.  However, a recent survey from an agent and marketing firm in the city has found that whilst Chinese buyers are dominant, it is immigrant Chinese buyers, not those from the Chinese mainland.

The firm examined 500 buyer profiles collected at the time of signing contracts, including a 25 question survey.  330 of these were from Chinese buyers, but only 0.3 per cent of them had their main residence in China.  The remainder were Chinese immigrants already living in Canada.

Company president Cameron McNeill said: “Virtually all [the] sales to people of Asian descent are people integrated into our community.  The people we’re selling to live here and have bank accounts here.

“There’s a misconception that people think [mainland Chinese] are travelling here [to purchase] or are buying off-site. It’s the opposite. Very few people are buying that don’t reside in Vancouver.”

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