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5 tips to better tailor your property tour for Chinese buyers
By Juwai, 21 April 2017
60% of China’s high net worth individuals (HNWIs) intend to buy overseas property within the next three years.1
For international brokers and agents around the world, that could be music to their ears, especially with the upcoming Dragonboat Festival long weekend at the end of May, as we've noted that Chinese international travel tends to drive overseas property investment as well.
92% of Chinese consumers plan to travel internationally in 2017 â€“ 57% who intend to purchase property while at their travel destination, according to a Juwai.com 2017 travel survey.2
With Chinese real estate buyers growing increasingly discerning, though, it’s vital to offer an excellent customer experience for your prospective Chinese buyer while in town, and one way to do so is to tailor your property tour to fit the demands of each Chinese client.
Before you can customise the best experience, however, first you need to know your customer. Here are 5 pointers to help you get an accurate picture of your Chinese property buyer before they visit:
#1 Find out target properties
Nothing is more vexing for a buyer than to be taken around properties that do not fit requirements, so ask in advance about specifications. Are they looking for an apartment or a landed property? How many rooms do they need? What is the price range they are looking at? Are they only looking for newly-built homes or are they open to secondhand homes as well? These are but a few of the questions you should ask your Chinese client before they jet in, so you can tailor your property tour directly to each buyers’ interests.
#2 Understand investment motivations
Education is a key motivator for Chinese buyers, but it’s by no means the only one. Chinese property investors are increasingly looking to purchase overseas for retirement homes, holiday homes, pure investment, and in recent years, for proximity to excellent medical care. By understanding what’s propelling them to purchase abroad, you can narrow down your list of properties that could be the best fit for them, and increase your chances of them sealing the deal.
#3 Tailor to time
Chinese buyers have a penchant for maximising their time abroad, so often they may choose to combine their family holiday, business or even a flight stopover together with property hunting. All these boils down to one thing: time is of essence. Hence, it’s important you get a clear sense of how much time your client has for a property tour, so you can organise a focused and time-efficient tour that packs in as much as possible, which is particularly valuable for Chinese buyers on a short visit.
#4 Location matters
Where your Chinese want to buy greatly varies depending on their personal criteria and the most important factors influencing their purchasing decisions. Is neighbourhood safety their top priority or is neighbourhood exclusivity more important? Is proximity to good schools more vital or friends and family more relevant? Do they want to be located downtown for more convenience or in the suburbs for more peace? Are they buying based on locations offering the best yields? These factors, and many more, may play heavily on buyers’ minds, and it’s up to you to ask in advance to hone in on what they really want.
#5 Connect with contacts
Chinese real estate buyers are going to be interested in local schools, healthcare, community organisations, mortgage providers, as well as legal services, but this may prove challenging for them in a new town and country. Factor this into your property tour, and connect them with local suppliers and contacts who could be of help to your prospective Chinese client, such as contractors, lawyers, gardeners, and government offices. By demonstrating your knowledge of the local area and showing available support services to them, you can nurture trust and guanxi with them, improve your credibility as an agent with them, and give them the boost in confidence they may need to make the purchase.
With these 5 tips in mind, here's to you creating an effective, targeted customer experience strategy as part of your property tours for prospective Chinese buyers, and ultimately improve your chances of clinching a deal.
Sources: 1. Hurun Report: Immigration and the Chinese HNWI 2016; 2. Juwai.com Chinese Buyer 2017 & Chinese New Year Travel Survey