China’s autumn Golden Week set to generate ‘property spree’
31 Aug 2015
This year’s China’s autumn ‘Golden Week’ holiday will provide even more potential for international property sales.
The option to have a longer Golden Week break this year by combining it with another holiday means that more Chinese are likely to travel internationally and take the chance to look at overseas property options.
Almost 5.2 million Chinese went abroad during the previous Chinese New Year Golden Week in the spring, spending around US$22.4billion overseas, one Chinese international property research reports suggest.
The popular Chinese language says this year’s second Golden Week, which begins on 1 October in celebration of China’s National Day, could lead to even more spending on real estate. A burgeoning number of Chinese – especially high-net-worth individuals (HNWIs) – are now increasingly choosing to travel outbound.
“For context, property is burnt in Chinese consumer’s investment psyche, as it has for many years been one of the few available investible assets and, historically, has been a great way in the minds of Chinese consumers to both make money and show status." One international property expert says.
“Real estate is the most preferred choice of investment for Chinese millionaires. That puts property at the top of the shopping list for many Chinese tourists who are travelling overseas over the Golden Week holiday.”
According to the report, there are five reasons why National Day Golden Week will be especially crucial for international agents and brokers this year.
A longer break
Mid-Autumn Festival, a three-day Chinese holiday will occur later than usual this year on 27 September, allowing workers in China a rare chance to enjoy a longer holiday by pairing it with the National Day celebrations. In other words, more incentive to travel internationally!
More Chinese are heading overseas
Total overseas trips made by tourists from China are expected to top 120 million in 2015, up 10% year-on-year, and as a destination gains more popularity for tourism, so does its popularity for property investment.
Fewer restrictions on investing overseas
Buying overseas property is easier than ever before for mainland Chinese thanks to China’s relaxed restrictions on overseas investment, easier visa application processes for Chinese travellers and attractive policies offering residency in return for property investment.
International property increasingly popular aspiration in China
With an increasingly international outlook, overseas property has become a realistic ambition for upper-middle-class Chinese, whose numbers and household wealth have been growing in leaps and bounds. There is predicted to be 224.9 million upper-middle-class and affluent Chinese by 2022, up from 43.5 million in 2012. With their strong appetite for property abroad, this could mean exponential growth in Chinese outbound property investment.
Overseas properties a more attractive investment option
Chinese property buyers have a particular fondness for Sydney. They only have limited time while house hunting during the Golden Week period. They are quick decision makers and more than 50% of them are cashed up buyers, according to WooBuyer's high net worth clients database. Quality education and lifestyle are amongst major consideration.
Luxurious properties in prime location with or without water view up-to 30 mins driving distance from CBD are also in their hunting list. If you think your property would suit the Chinese interest and don’t want to miss this golden opportunity, please contact us on 0408 098 282 or email us to set up a confidential discussion.