According to the National Association of REALTORS® 2016 Profile of International Home Buying Activity, Chinese buyers make up for over 27% of all international home sales in the United States. Not only are Chinese buyers purchasing more U.S. property than any other group of international buyers, but they are also purchasing at a much higher price point. While the average purchase price for other foreign buyers during the 2016 period was $477,462, the average purchase price for Chinese buyers was $936,615! Plus, approximately 71% of those purchases were all-cash. This is an opportunity that U.S. real estate professionals simply can’t afford to miss!
So, why are Chinese buyers searching for homes in the U.S.? One of the biggest reasons is how expensive local assets currently are in the Chinese property market. Tax regulations and various laws make purchasing local property more difficult and Chinese buyers are looking for a safe place to invest their money, with the U.S. offering a wide range of investment choices in real estate. Another major reason to look in the U.S. is education, which is of deep-rooted importance in Chinese culture. While education is extremely competitive in China, the U.S. offers options for top universities and competitive options for K-12, since many Chinese parents are looking for a more well-rounded curriculum for their children than is offered in China where they often focus on more high stake testing. To learn more about this immense opportunity, check out this on-demand webinar from ListHub Global, and read the 5 tips below to attract Chinese buyers to your listings.
Top 5 Ways to Attract Chinese Buyers to Your Listings
- Focus on location: In addition to highlighting the neighborhood where your property is located, associate the property with well-known landmarks and focus on school zones, transportation options, and and other attractions.
- Win over the youth vote: When making a decision about where to purchase property in the U.S., decisions are often heavily influenced by the children in the family, especially those who are moving to the U.S. for school. Make sure your property highlights features that cater to the younger generation: amenities, proximity to shopping malls, parks and any nearby universities.
- Think Hollywood: Many Chinese buyers have gained their knowledge of the U.S. through Hollywood movies and don’t necessarily have a thorough geographic knowledge of the country. Take advantage of this! Chinese buyers may know about Seattle from watching Meg Ryan and Tom Hanks falling in love on the big screen, but may have no idea that Seattle is located in Washington state. Make sure to put emphasis on the city name and if possible, relate your property’s location to movies or media that are popular in American culture.
- Get acquainted with Chinese social media: With strict internet regulations, Chinese do not have access to Facebook, YouTube and other social media channels that we use every day in the U.S. One of the most widely used social channels in China, WeChat, is described as a “super app” that combines tools similar to Facebook, Twitter, Instagram, WhatsApp, Uber and Amazon – all rolled into one application. With 700 million active users, the app has become an integral part of doing business in China. In fact, over 80% of Chinese buyers prefer to be contacted via WeChat when requesting property information. Having a presence on this widely-used site can be a game-changer for connecting with Chinese buyers.
- Most importantly… get your listings in front of Chinese buyers: Reaching Chinese buyers can be challenging. With language barriers and strict internet regulations, real estate professionals often have a hard time getting their listings in front of Chinese consumers searching for their next investment opportunity. ListHub can help! With several Chinese publisher websites available in the network, you can get your listings on the sites where Chinese buyers are actually searching.
Click here to access an on-demand version of our recent webinar on Chinese migration to the U.S. and how you can better attract Chinese buyers to your listings. Plus, learn more about how ListHub Global can help you get effortless international exposure for your listings.