What are the top 10 China Trends 2017
For any homeowner of Palos Verdes homes thinking of selling in 2017, given that the Chinese buyer is an important part of our market place, it wouldn’t hurt to know the top 10 China Trends.
Did you know for example that China’s GDP growth is exceeding the 6.5% expectation. As a result, Chines companies contribute a record flow of overseas deals and outbound tourism. Los Angeles and as a subset the Palos Verdes Peninsula, benefits from this “built in demand” for homes.
What are the top 10 China Trends 2017
#1 Domestic slowdown, overseas acceleration
With the Chinese government’s imposition added sales and credit restirctions on its domestic real estate market and the consequent fewer opportunities, Bank of America Merrily Lynch research expects Chinese residential prices to fall 5% in 2017. That means that Chinese property investors will be increasing their focus on overseas property. High net worth Chinese buyers consider property purchases as the most popular form of overseas investment.
#2 User experience to become a game changer
Did you know that China’s retail sector is growing at 10.7%? Retailers will adopt new technologies; as an example Alibaba used Virtual Reality in its “Singles’ Day” extravaganza where it offered Chinese shoppers a VR shopping experience based on Macy’s New York Store!
#3 Global visa rules to ease for Chinese visitors
Governments such as Japan, Australia and the US have all increased tourism and investment flows after easing their visa policies for Chinese visitors. We know how beautiful the Palos Verdes Peninsula is with its clean air, top schools and posh “Riviera feel”. What happens when vacationers see and experience our area? Many buy!
#4 Greater competition for Chinese buyers
Chinese property investors are an important and powerful group and real estate brokers who understand the primary criteria focus of Chinese buyers (such as safety and security) and as importantly know how to tap into that segment (contact me for more information by sending me a message through WeChat) are those agents that are creating the most benefit for their clients such as owners of Palos Verdes homes looking to sell
#5 China’s consumers to continue driving the economy
The Chinese consumer market is huge – how big? Want to see a comparison of Alibaba’s “Singes’ Day” bonanza compared to “Black Friday” or “Cyber Monday” here in the USA? You’re going to be amazed
#6 One Belt, One Road to get an even bigger push
With Donald Trump’s election indicating a more domestically-focused policy agenda8, China will accelerate the One Belt, One Road strategy’s $1 trillion investment boom, build-out more efficient trade routes, catapult Chinese companies overseas, and strengthen China’s political relationships and influence in Asia, Africa, the Middle East, and Europe. And as Chinese businesses expand overseas, their staff will follow them and be on the lookout for property as they settle overseas, as we have seen happen in Dubai.
#7 Alternative markets soar in popularity
Hotspots like Los Angeles, London, Vancouver, and Singapore will always draw interest from Chinese but alternative locations like Seattle, Manchester, Calgary, and Iskandar in Johor Bahru, Malaysia11 will see strong demand from Chinese investors as well, thanks to improved transport connectivity, relaxed visa conditions, and increased knowledge of alternative markets
#8 China’s greying population a future goldmine for real estate agents
China will have a population of 340 million retirees aged over 60 in 2030, an increase of 175 million from 2016.12 This is creating huge demand for property and medical services, as elderly Chinese want to retire in comfort and have easy access to excellent medical facilities as well. As such, more and more Chinese are looking abroad to fulfill their needs, creating a burgeoning market for retirement properties and medical tourism. Spending by Chinese on overseas medical care alone was estimated at $10 billion in 201513, and this is expected to grow with locations like the US, Japan, Germany, and Thailand at the top of the list for medical services abroad.
#9 Chinese tourism: larger flows, wider reach
Total global outbound trips grew 4% y-o-y YTD at the end of September 2016, with trips out of China growing 18% y-o-y14, making China the largest source of tourists in the world. The steady loosening of visa rules for Chinese citizens and increasing flight connections out of China, which were up 13.9% y-o-y15, will continue to propel tourism growth out of China. This surge in Chinese outbound travellers are largely driven by droves of travellers from lower-tier cities, mobile millennials – the fastest-growing spenders in China – and an increasingly adventurous tourist base who are just as keen on the Arctic16 as they are on staple locations like Portugal’s Algarve coast.
#10 Larger buyer pool in China for overseas properties
Stronger prospects for overseas property markets, increased wealth from China’s recent real estate boom, easier visa application rules, the ongoing allure of overseas education, as well as medical and health facilities, plus a greater selection of (increasingly affordable) flight connections…all these will bring more Chinese buyers to market than before.
So with all this information,
how will the Chinese Buyers Market Change for Palos Verdes homes in 2017?
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