The increase in the disposable income with the Chinese have made them the second largest market for luxury goods and now they are seen to be getting more and more active in the markets around the world looking for luxury homes. This trend has also emerged due to the Chinese governments measures to cool its property markets and restrictions on multiple home ownerships and higher interest rates. While looking out, the Chinese are first looking at properties in Hong Kong because it is near for them and has a large population that speaks Mandarin. Since the currency in Hong Kong is tied to the dollar the Chinese feel they are getting a good deal for their Yuan.
Samson Law, managing director of Sotheby’s real-estate division feels that the Chinese will soon look to buy overseas, in London, New York or in Australia. According to a report in Wall Street Journal it was found that the biggest players in the residential-real-estate scene today often come from halfway around the world. The number of Chinese buyers looking for property abroad is increasing very rapidly. If you watch the trend closely, you will realize that the demand from the Chinese is more for luxury properties. Sensing an opportunity here the high-end real-estate divisions of Sotheby’s and Christie’s have both set up their Hong Kong offices.
The Chinese buyers make up almost 28% of all real estate transactions valued at $1.5 million and above, in Hong Kong. The developers of the Imperial Cullinan, a luxury condominium in West Kowloon, seem to know what Chinese buyers want and they also conducted a promotional road show in Shenzhen to publicize the project. Joseph Tsang, managing director of Jones Lang Lasalle indicates towards another important point that the Chinese buyers have a preference for new development as they are looking for capital appreciation and not rental income. This trend has boosted the real estate prices in Hong Kong by 24% over an increase of 30% in 2009.