“The market to watch is China (477000 HNWIs), ranked 35th in the countries with the highest number of billionaires in 2005. And in 2010 it was 2nd on the List.” Forbes
China has the world’s largest housing market, and investors, both foreign and local, have an immense interest in this thriving sector.
A Chinese buyer with an average income of $50,000 could live a lifestyle of $160 000 in the US
In the first quarter of 2012, primary sales of housing across 20 major cities in China continued to fall except in Beijing, Shanghai, Chengdu and Wuhan.
However we expect that luxury residential market will rebound. Some newly launched luxury-serviced-apartment projects obtained good sales performance due to discounted sales prices: Four Seasons Place managed by Four Seasons Hotel, Ocean One in Shanghai and others.
Luxury residential rental market saw an increase of about 2%. An increasing number of expatriates employed by multinational companies and a shortage in the rental supply pushed rents up.
About Chinese Luxury Real Estate buyers
There is a promising demography with a young audience of buyers – between 30 and 40, compared to the US and Europe aged between 40 and 70. There are 250 million Chinese households with an annual income of USD 1,875 to USD 7,125. Although the overall level of income is still low in USD terms, a Chinese buyer with an average income of $50,000 could live a lifestyle of $160 000 in the US due to the low cost of living in China.
In Asia, Luxury Real Estate symbolizes innovation, social status and measure of wealth more than tradition. Chinese buyers prefer modern luxury-serviced-apartments, condos, new constructions and urban properties.
Prestige MLS keeps an eye on the evolutions of the Chinese market. We first discovered the opportunities offered by China’s Real Estate during the LPS Showcase in Beijing last November 2011. We plan on organizing other trips through 2013… How about we meet in Shanghai?
If you would like to discover more investment opportunities in Luxury Real Estate, read the Luxury Hotspots section of our Blog.
