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Chinese property buyers are the fastest growing group of real estate buyers on earth, having spent close to six billion dollars on Australian real estate in 2014. This is a buyer pool that’s clearly too big too ignore – and understanding the motivations of Chinese buyers is crucial for any agent who wants position their listings to get their attention.

There are a number of reasons that Australia is such an attractive destination for Chinese buyers.

• Legal restrictions on home ownership. Buyers are limited to two properties and property is purchased on a lease that needs to be renewed after 70 years.
• Well-established expat community.  Australia’s existing Chinese community is waiting to welcome new residents 
• Residency. The Australian government fast tracks residency visas in certain circumstances. 
• Quality of our environment. Pollution is a huge issue in China, particularly in cities and major industrial areas. 

Australia appeals to the desire of Chinese buyers for security and a higher standard of living. 

When it comes to marketing directly to this buyer pool, there are some points agents can keep in mind to make sure their listings stand out.. 

Education is key

The importance of education as a drawcard for Chinese buyers can’t be underestimated. Around 80% of wealthy Chinese families plan to send their children abroad to study, while only 10% of Germans and 1% of the Japanese plan to do the same.  Education is considered an investment with the potential to elevate the standing of a whole family; China’s one-child policy was only officially relaxed in 2013, and many well-off Chinese families are willing to give their only child the best of the best. If that means purchasing an Australian home so the child can live comfortably while studying, so be it. If there are schools, universities or even a kindergarten near your listing, put that front and centre. 

Bilingual staff

Salespeople and other staff who can converse with international buyers in their native tongue can really make a difference. It puts buyers at ease when trying to navigate a property search in a second language – a Chinese speaking agent is in the best position to answer queries and address any concerns. Remember that the property buying process can be overwhelming at the best of times. Trying to do it in a second language only compounds that.

Focus on building relationships

Chinese culture places a high value on relationships. Honesty and politeness are highly regarded, and Chinese buyers are more likely to give you repeat business – and refer friends and family – when they feel their treatment has been friendly and fair. 

Home ownership is a tradition

Just like Australians, the Chinese value the security that home ownership offers.  Prior to the rise of communism in the 1950s many Chinese owned property of some sort whether a house, shop or farm. Despite current restrictions on home ownership, it remains a goal for many – owning property is seen as a traditional, and far more desirable than the current system of long-term leases.

Chinese language material

New Litho started offering translated brochures for international buyers in 2014 and they quickly become indispensable to our clients – particularly those in the sought-after eastern suburbs. As well as overcoming the language barrier, this provides an opportunity to tailor information to the Chinese market, who tend to be far more interested in lifestyle factors than basic lists of features. Some of our clients are even incorporating information about Feng Shui into their Chinese brochures to better cater to the market. 

It goes without saying that Chinese portals are one of the quickest ways to get in front of the right buyers, while adding a translation feature to your own website will make it much easier for international buyers to navigate. 

Invest in video

This can be a crucial tool. Some Chinese buyers rely on relatives or friends on the ground to do the physical property search in Australia while they themselves remain in China. that means that high quality video showcasing your listings is the best way for them to get a real feel for a property and establish an emotional connection.

They love to bargain

The sight of Chinese buyers haggling with agents is a common one, but it’s not necessarily just to get the lowest price.  To purchase something without bargaining is foolish – negotiating on price saves face and is more important than merely saving money in many cases. So expect bargaining, but don’t inflate the price unnecessarily – remember how highly honesty is valued. 

What are your experiences of marketing property to Chinese buyers?