In recent years there has been a huge wave of Chinese investment into overseas property. With a population of 1.4 billion people in a country with a GDP growing by 7% year on year, the market of Chinese overseas property investors undeniably reflects huge potential.
If you’re looking to expand your real estate business globally, selling properties to Chinese investors can be a great opportunity. With their growing interest in overseas property investment and high purchasing power, the Chinese market presents huge potential for US real estate sellers.
Key Takeaways
- Chinese investors are attracted to US real estate due to their interest in global investment and portfolio diversification, as well as the perception of safer long-term investments with higher potential returns compared to domestic properties.
- To effectively sell US real estate to Chinese investors, it’s important for marketers to understand cultural differences and preferences when it comes to investments and marketing strategies. Building trust through reputable branding efforts tailored specifically toward them is also crucial.
- Utilizing Chinese social media and marketing platforms such as WeChat, Weibo, Baidu, and live streaming channels can be highly effective in reaching out to potential Chinese buyers and promoting US real estate properties. Understanding the impact of China’s regulations and policies on overseas property investment.is also essential for success in this market.
The US is the most popular location for investment
The US is currently the most popular choice for property investment by foreign investors, especially the Chinese property buyers, who are now the biggest foreign investors of real estate within the country, currently responsible for 29% of the total foreign investment in American real estate.
The East and West coast tend to be the most sought-after areas, with New York and Los Angeles currently being top of the list. And it’s not just wealthy citizens buying up foreign property. Chinese companies are also beginning to invest in office spaces abroad as a way of company investment. Generally, there is a better return on investment in overseas property than investing in China so it’s easy to understand why forward-thinking companies are jumping at the chance to invest.
On the other hand, China’s real estate sector has evolved rapidly over the last three decades, transforming from a closed-off system to one that sees an influx of global investments. For instance, historically speaking, the Chinese property boom is closely linked to their booming economy, which plays a pivotal role in shaping global economic trends.
Understanding Chinese Real Estate Investors
Cultural Differences
These differences can impact investment decisions in various ways, such as communication styles, negotiation tactics, and overall preferences for property types or locations. It’s essential to recognize these unique considerations to tailor your approach accordingly.
To bridge the gap between diverse investment strategies and expectations, consider offering ample opportunities for face-to-face interaction with prospective clients—even if it entails traveling halfway across the globe—while focusing on building long-term relationships founded on trustworthiness.
Influencing Factors for Chinese Investors in US Real Estate
Besides their desire for global investment and portfolio diversification, which we mentioned previously, insecurity in China’s domestic market has prompted many affluent individuals from mainland China, Taiwan, and Hong Kong to seek safer investments overseas.
Other considerations for Chinese buyers include educational opportunities for their children as well as desirable lifestyle choices associated with owning property in prestigious neighborhoods or upscale communities.
Impact Of China’s Regulations And Policies On Overseas Property Investment
The Chinese government has instituted financial regulations and tight controls on capital outflows and Chinese investments, including restrictions on foreign real estate purchases. For instance, in 2017, the Chinese government announced new rules that limit overseas investments by domestic companies and individuals.
This move is meant to curb money laundering and prevent investors from shifting their assets abroad illegally. However, despite these restrictions, US real estate remains attractive to Chinese investors who seek stable returns and long-term asset appreciation.
Trust And Brand Reputation In The Chinese Market
In China, trust is one of the most critical factors influencing consumer behavior. A significant aspect of building a successful brand in China is establishing a trustworthy image by paying close attention to cultural sensitivity. To build trust with Chinese investors, companies need to define their brands clearly and learn from examples that have been successful in cultivating brand loyalty with Chinese consumers.
Digital Marketing Strategies For Selling To Chinese Investors
In order to start selling real estate to China, it is important to have a very thorough understanding of the purchasing habits of the Chinese when it comes to buying property. From what they are looking for, to the various marketing platforms used throughout China, having an in-depth knowledge of this is hugely beneficial when it comes to helping you generate leads and achieve success in terms of conversion.
The key point to understand is that the answer in China is digital, with 900 million netizens and an internet penetration rate of 70%, the whole investor eco-system is centered around online activity. This also differentiates the Chinese market from the rest of the world where offline affiliates play a larger role, in China less so.
Your Reputation May Not Extend to China
Large, reputable firms have often asserted to us that they do not need to market themselves in China, they are world-renowned and the investors come to them. In China actually, this logic does not hold up. The Chinese business and online landscape are actually very distinct and separated by what is termed the ‘Great Chinese Firewall’.
As established, digital is the solution but on the Chinese internet, local platforms dominate. No Google, Baidu. No Facebook, but rather WeChat. Chinese news sources such as Sohu and Ifang are where investors browse for information.
If you are not active and have not developed Chinese content you will not be visible on Mandarin Character Keyword Searches. This is a problem even for the largest firms in terms of attracting seriously wealthy investors.
Produce a Good Chinese Website and Quality Mandarin Content
No matter how strong your reputation is back in the US, it is very important to remember that when your company enters China, you are essentially invisible. Any positive reviews you have are inaccessible due to the ‘great firewall’.
It is therefore essential to build your own website in Chinese in order to give potential investors a first look into your company and the type of property you have on offer. Producing well-written content about your property which can be accessed from various Chinese platforms is also advised in helping build both your visibility and credibility. These should include backlinks to your website in order to increase web traffic and your ranking in the search results.
Remember, some overseas investors may not have the opportunity to come and view the property they are investing in in person. It is, therefore, crucial to have a wide range of images of the property on offer with very concise details so the investor can have a better idea of exactly what they are getting.
Videos are another great way of giving a very clear view of what you have on offer. Generate high-quality walk-through videos of properties. Videos, images, and your website should all translate well to being accessed in mobile form, as the majority of Chinese use their phones for all their web research. This type of content suggested above can be sent to investors directly via instant messaging on WeChat accounts.
Become Number One on Baidu (China’s Google)
After creating a strong Chinese website, you need to start increasing your visibility. Baidu (the most popular search engine across China) is the most important place to start. Statistics show that if you do not appear on the first search page, you are likely to lose 65% of potential internet traffic.
It is highly advisable, therefore, to do search engine optimization in order to rank on the first page. Finding the right keywords that will help you generate the most leads, optimizing your cost per click and bid positioning, and constantly updating your landing page while monitoring web traffic are all key in helping you achieve ‘first search page’ success. Ranking highly in the organic results on Baidu drives the highest quality leads.
Sites need to be built with Baidu searches in mind and audited in terms of Mandarin Characters that improve search engine ranking. This Chinese site will be your ‘shop front’ in China.
PPC (pay-per-click) is also a good way to complement ongoing SEO for a real estate firm. This will rank you in the paid results, and real estate still offers an effective ROI. The combination of the two approaches works best, with PPC being more important initially when you first enter the market and SEO becoming more viable after a number of months of activity.
Social Media (WeChat) is Integral
As the most popular social media app in China, it is advisable to become highly familiar with the inner workings of WeChat and the ways in which it can help create interest and market your property.
Setting up an official WeChat account will give your audience the feeling of having a more direct line of contact with you. It will also allow potential investors to stay constantly up to date with any updates regarding your company. You can also create your own weChat group to better communicate with potential customers.
For example, as a real estate developer, any new properties you have on offer can be shared on your official account so your subscribers can see them instantly without going out of their way to access your website. Consider WeChat as a communication ‘Swiss Army Knife’ for building relationships with investors. Ranking highly on Baidu is the best way to generate qualified leads, and WeChat is the first step toward conversion.
Almost every website in China is accessible by QR codes so include your website QR code on your official WeChat account to give potential investors a smooth transition from your WeChat to your website. This ‘lead funnel’ needs to be developed to be as intuitive as possible for all parties.
PR & E-Media Coverage
In China, exposure to e-media is essential to win investors’ trust. They search on platforms such as Sohu, Ifang, or News168 for relevant information. Quality PR content is essential and must be tailored for the Chinese market to develop the reputation of your services. If you have no presence in the news, a serious firm will struggle to gain traction.
Other Effective Marketing Strategies
Translating Property Listings to Chinese
One of the most effective marketing strategies for selling to Chinese property buyers is translating property listings and other materials into Chinese.
This will help ensure that potential buyers and high-net worth individuals from China understand all of the key features and benefits of your properties without any misunderstandings or confusion. Research has shown that offering multilingual marketing content can have a significant impact on sales for luxury properties worldwide, including those in the United States.
When we take into account that many wealthy Asian and Chinese investors are cash buyers who value discretion and ease when making purchases abroad, creating easily accessible information they can read in their own language becomes crucial in securing these investments.
Relationships With Local Chinese Real Estate Agencies
Networking and establishing partnerships with these agencies can provide invaluable access to potential buyers in China. These established relationships can also help overcome the language and cultural barriers that often arise when dealing with overseas clients.
It’s worth noting that building these relationships takes time and requires trust-building efforts on both sides. It’s important to do research and find reputable partners who understand the local market and have experience working with foreign buyers.
Real Estate Investment Seminars And Virtual Tours
These events provide a great opportunity to showcase properties and discuss the advantages of investing in US real estate. Chinese investors are known for spending a lot of time online and on mobile devices researching potential investment opportunities.
By holding these events virtually or through live streaming platforms like WeChat or Baidu, marketers can easily reach interested investors without travel costs or logistics issues.
Post-Sale Services
Maintaining consistent contact with clients after the sale is crucial to building lasting relationships and driving repeat business. Positive post-sales experiences can help increase customer loyalty, enhance brand reputation, and ultimately lead to increased sales.
To achieve this goal, it’s important to focus on relationship management by maintaining follow-up communication and providing aftersales support. This could involve offering additional services that add value for your Chinese investors such as property management or legal assistance.
Additionally, implementing loyalty programs and analyzing consumer behavior patterns can help identify opportunities for upselling or cross-selling products and services.
Offering property management services can provide peace of mind for investors who may not live in the same location as their investment properties. Plus providing legal assistance with navigating unfamiliar US laws and regulations pertaining to foreign buyers can be invaluable for these investors.
Our Agency is Here to Help You Succeed
Selling U.S. real estate to Chinese investors requires a deep understanding of their motivations, cultural considerations, effective marketing strategies, and careful attention to legal and financial logistics. At our agency, we specialize in providing comprehensive solutions for successfully navigating these challenges.
With our expertise in understanding the cultural nuances and regulations impacting investment decisions, we can develop tailored branding and marketing strategies that build trust with potential clients in the Chinese market.
We are well-equipped to manage the legal and financial logistics involved in the buying process, ensuring a smooth and secure transaction for Chinese investors. Furthermore, our commitment to providing high-quality post-sale services will help maintain strong client relationships and add value to their investment.
In fact, last year, Chinese investors from mainland China, Taiwan, and Hong Kong were the most active buyers of U.S. real estate among foreigners. We recognize the significance of this trend and are dedicated to assisting Chinese investors in capitalizing on the opportunities available in the U.S. real estate market.
Whether you are interested in entering the U.S. real estate market as a Chinese investor or need assistance in navigating the intricacies of this industry, our agency is here to help. Feel free to contact us anytime to discuss your goals and how we can tailor our services to meet your specific needs. Together, we can unlock the full potential of your real estate investment journey in the United States.
17 comments
William Burch
I am looking for an investor or business partner. I have flipped over 200 homes, built custom homes, and currently went to work for Nation wide builder of affordable homes so I could learn this system. Their profit margins are between 13-19% per home. Each house is taking roughly 6 months to build. That means low end that’s a 26% a year return on your money. I know the ends and outs of all phases of the construction including permitting. Last month alone I poured 17 slabs in 20 days because my crews don’t work weekends.
If I continue in just my one subdivision that would a total of 17×12=204 houses in a year. The average price of a home in my subdivision is $485,000. Take $485,000×204=$98,940,000. That comes to a profit margin of just $12.8 million a year. The biggest part of this is the houses I’m building already qualified buyers, so their sales price of the home is covered/guaranteed money. Therefore, the major part of the front money is land development and employee costs.
The current land was purchased at $25,000 an acre. On that acre we build a road and 6 houses. Each of those 6 lots sell between $10,000 to $25,000 each. My current subdivision started 8 months ago. 89 properties have sold. Roads are in for the first 130 houses, and 39 homes have made it past permitting and have already started being built.
If the company I work for would do a little more custom work in these houses the profit margins would stay close to the same but would pull in at least another 15% of buyers. Just letting the home owner pick their own interior paint would increase sells. Offering accent walls to add into their homes would increase revenue.
My masters is in marketing and to grow a new builder faster I have an idea that nobody else offers and I’m doing it I know it would increase sells by another 20%. This is why I’m seeking a business partner outside of the US. My son once said, “the only people that live the American Dream, are foreign business owners.” People in American tend to take their freedom for granted and prefer to have things handed to them instead of dreaming and trying to achieve greatness.
Gene Walters
I want to sell my home in Vista, Ca. between San Diego and Los Angeles. We have a 5,000 Sq. foot main home and a 2,000 ft. Guest Home with a downstairs apt. the rent from the Guest House alone will pay the mortgage. Main house has four B R’s and 3 Baths. a huge basement and a full Acre of land with fruit trees. A concrete driveway, 14 ft. wide and 6” thick with steel bars every foot. 45 min. from San Diego and 11/2 hr. from Los Angeles. On a dead-end Street. Quite neighbor. see it on Google at:
3182 Penview Dr. Vista, Ca. 92084. Asking 1.2 Million. Wife and I rented down stairs apt in main house with six children . When Grandparents died, we moved into entire house. when our daughter had three children we moved to Guest Home and rented out the downstairs apt to pay the mortgage. We are 12 Mi. from the ocean inland of Oceanside, Ca.
Seth Hersh
I would like to discuss marketing a multifamily property for sale located near New York City in NJ.
Neil Aleong
Hi. This is a very informative article and thank you for sharing. Being a real estate agent in the USA, I have always wanted to extend our customers to investors in China. I would appreciate it very much if you would contact me to discuss business. Looking forward to hearing from you.
Jane
Saw a documentary the other day. Hong Kong is where the most expensive real estate is. Investing there would be profitable since there’s a lot of demand.
Darryl
Wow this is some wonderful insight, thank you for sharing! Always good to hear that the market i expanding and introducing new buyers,
Robert
Great information, thank you for all these articles MarketingtoChina.
I would like to know if your services are Suitable for one property ? and if it is suitable to use your Agency for that ?
Do you work on Commission bases ?
Mohammed Aslam
I want to sell my beautiful 2 bedroom apartment (929 sq ft) high floor facing mountain view in Metrotown, Burnaby, BC, Canada.
It is in the high rise tower above the Crystal Mall (Chinese Mall). Call: +971506462691
Price: CAD 850,000
Olivier
Sorry, our services are more for Companies not for Personal. Good luck anyway
Gustavo
Thinking of buying in Uruguay? Move down way south of the border, contact expats really enjoying life just an hour from the hussle and bustle of Buenos Aires, Argentina and 2 hours from Montevideo.
Colonia is where you want to go. We have a nice thatched roof ranch, triple garage and horse stable, eucalypt forest, very large water hole and 8 manageable hectares of park, established trees and all you need. How to I market this to the chinese?
Olivier
You contact us and We explain to you how it works.
Georges
Great article about Real estate in China, you guys are expert, I can feel it.
janet
we want to sell our property its a primetime location at southern california located at Pacific Palisades. I am looking for wealthy investor who wants to buy house for 4,000,000.00 this area mostly live celebrity.
Olivier
Hi
send us an email please.
Joe Natale
Olivier,
I own 2 houses which I am interested in selling.
1) 20 Midland Lane, Wheatley Heights, NY 11798 (NY City suburb with excellent schools) -> rented to a family as a home
You may view this property on facebook at https://www.facebook.com/marketplace/item/2123545291005602
The house generates a rental income of $39,000 per year. An identical house across the street sold for $389,000. This house is for sale $365,000.
I am able to share a list of comps.
Wheatley Heights median sale price $460,000
Wheatley Heights median list price $399,000
2) 105 Constitution Drive, Lackawaxen, PA 18435 -> rented as a vacation property
This house generates $45,000 per year as a vacation rental.
The house is being sold by me with all furnurture and customer list for $300,000
https://www.homeaway.com/vacation-rental/p239956
The United States has seen rents rise substantially over the past 8 years. This is due to the inability of banks to offer loans due to strict regulations. More families are forced to rent which drives up the price of home rentals.
In addition, the market for vacation homes has changed dramatically during the past 10 years. The number of families renting a resort home for vacation has increased 5 – fold.
For these reasons, investment in single family homes has become profitable in the United States.
I have been a landlord for 25+ years as have some of my friends. We are considering establishing an Equity Fund targeting investments in this market. We are looking for wealthy investors such as Chinese citizens.
Let me know if you are able to help me with any of this….
Joe Natale
jnatale_11746@yahoo.com
Eddie Sezniak
I ha a property in a mountain ranch community just north of Los Angeles I would like to sell. I would like to sell it quick, I am moving to another state.
Renee
China is byuing America , buying up pricey Brooklyn real estate For China’s Rich people , Brooklyn real estate offers more than a green card. Since the Great Recession in the US , snapping up prime real estate in coastal US twon, has become an increasingly popular sport with Chinese wealthy Men.