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Chinese bidding big at New Zealand home auctions
By Juwai, 20 November 2012
Chinese investors are making their presence felt in New Zealand real estate, outbidding Aucklanders on residential properties.
Unlike most other countries, New Zealand does not currently have any restrictions or regulations on foreign property buyers. Which largely explains the inflow of foreign investment, particularly Chinese investment in its housing market.
Many wealthy Chinese investors are looking for safehavens to store their money and assets overseas, rather than keeping it all at home in China with them. With New Zealand allowing them to do so and purchase homes in an unregulated manner, demand for housing has been on the rise.
Why do Chinese invest overseas?
- 86 per cent risk diversification
- 76 per cent product selection
- 23 per cent immigration
- 20 per cent other reasons
- 16 per cent children's eduction
- 15 per cent return on investment
- 7 per cent better services
Where do they put their money?
- 31 per cent real estate
- 69 per cent investable financial assets
Growth opportunities in next five years:
- 62 per cent innovative products
- 61 per cent real estate
- 57 per cent overseas products
- 34 per cent basic products
- 26 per cent equities
- 7 per cent deposits
- 5 per cent hard to say
*More than one answer was allowed | Source: China Minsheng Bank and McKinsey
Read more from this article on The New Zealand Herald.