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New Zealand now among top Chinese property investor targets
Juwai.com has listed the top 5 search destinations for Chinese property hunters

New Zealand now among top Chinese property investor targets

With New Zealand now among the top 10 destinations for property searches on Juwai.com, the website is partnering with the RE/MAX agency in both New Zealand and Australia

For the first time, New Zealand has made it into the top 10 of searched countries on www.Juwai.com and the Chinese overseas property site is teaming up with agent RE/MAX New Zealand to further strengthen demand.

In 2012, New Zealand was not among the top 50 search destinations on Juwai.com. In June last year, it rose to the 15th most popular destination and through the year, interest grew by 89% to place it ninth on the overall list, ahead of Spain.

Now, Juwai.com is partnering with RE/MAX in New Zealand and Australia to display all it properties – and the leading agency believes others will follow.

Michael Davoren, Managing Director of RE/MAX Australia and New Zealand, says, “I believe that within 12 months, every good agent in Australia and New Zealand will be listing their properties as a matter of course on Juwai.com. The market is too important to ignore.

“We were doing very few sales with Chinese buyers a few years ago. Now, they account for the largest number of sales of any international buyer group.”

Andrew Taylor, co-CEO of Juwai.com, tells OPP Connect, “Our experience with agents in other countries shows that this deal with Juwai.com will help RE/MAX agents win new listings.”

In New Zealand, China is the second largest source of offshore property buyers, with 15% of all offshore sales.

China has overtaken the UK as New Zealand’s largest group of immigrants for the first time, according to New Zealand’s Annual Migration Trends and Outlook Report. In February 2014, 6,100 Chinese nationals were granted citizenship, a 10-year high. In 2013, Chinese migrants made up 15% of the 38,961 granted resident visas. The UK and India were each at 13%.

The most popular New Zealand search destinations for Chinese property investors on Juwai.com are:
1. Auckland
2. Kerikeri
3. Dunedin
4. Taupo
5. Northland

Other areas include the leading cities of Christchurch and Wellington and the less well-known areas of Nelson, Kaiteriteri, Paihia and Gisborne.

Chinese investment in Australian property climbed 75% over the last two years to AUS$5.4billion in the 2012-13 financial year, according to Juwai.com data. As a result, Australian real estate agents earned AUS$135million in commission on Chinese buyer transactions, assuming a 2.5% commission rate, the website states.

The top five destinations in Australia are:
1. Sydney
2. Brisbane
3. Melbourne
4. Gold Coast
5. Adelaide

Juwai.com says individual mainland Chinese investors are motivated by:

• Seeking profits in under-priced markets
• Obtaining educational opportunities for their children
• Internationally diversifying their investments
• Enjoying an attractive lifestyle and living overseas for business or emigration.

The Chinese market for Australian and New Zealand property is large and is growing fast. Besides the 2.7 million Chinese with more than US$1million in investable assets, there are 60 million upper/middle class Chinese who also fit the profile of typical purchasers of overseas property.

This high net-worth group will expand at a 20% compound annual growth rate over the next three years, states a joint study on Private Banking in China 2012, conducted by China Minsheng Bank and McKinsey & Company.

Australia and New Zealand are top destinations because of their closeness to China, stable real estate market, good schools, use of English, protected natural environments and growing economies.

* US-based Zillow (www.zillow.com) announced last week that it is joining forces with China’s second largest property website, www.leju.com, to provide Chinese-language listings of United States property from this summer.

The move comes just weeks after Chinese-language site www.meiaoju.com was launched specifically targeting properties in the United States and Australia.

By Adrian Bishop, Editor, OPP Connect

 
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