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Chinese cross-border homebuying during Chinese New Year in 2021
With the Ox galloping to welcome the Lunar New Year, over 50 million Chinese citizens will be vaccinated before the celebrations1.
With a national effort to prepare the country for the movement of people who will travel across China for the celebration which will last from February 11 to 17, this action will boost many countries economic recovery and lift overall consumer sentiment.
According to Juwai.com's database, the rise of property buying enquiries is expected2 as these buyers will spend their time at home while discussing with family on the investment, they could make with the finances usually spent on expensive vacations. Chinese cross-border buying enquiries could be to 40% higher this Chinese New Year than in 2020.3
- How is Chinese consumer property demand holding up?
Many consumers have put consumption on hold, with several purchasing local and overseas real estate, with subsale home prices in first-tier cities, grew 8.6 per cent in Dec. 2020 from a year earlier.
For example, in domestic sales, second-hand home prices in Guangzhou increased by 7.8%, and transactions increased 22 per cent in 2020 while houses in the Shenzhen area rose 15.2% in 20204 showing a continued interest in purchasing property by Chinese buyers.
The same the prospect lies within the overseas real estate market; the expectation of distributing vaccines is driving Chinese buyers to countries such as the United States, New Zealand, Malaysia, Japan and Thailand5.
- How should Do developers and agencies approach these consumers during Chinese New Year?
As celebrations got underway; developers should take this opportunity to engage buyers during Chinese New Year, using social media, property websites6 as well as the following channels:
- Online real estate marketplaces
- Property management apps
- Personalized targeted real estate ads
- Virtual and augmented reality listings
The post-Chinese New Year celebration timeframe is essential to capture the buyers' attention if we look at buyers' behaviour from several years back. While there may be hardships during the holidays, the month or two following the holiday might create new overseas purchases opportunities.
- How is the future investment for real estate regarding Chinese consumers?
For those within the real estate industry, with the vaccine distribution introduced in China and other countries, they will use this opportunity to get Chinese buyers' undivided attention to promoting listings and ensure continuous sales.
Countries such as Thailand, Australia, Japan, Vietnam, and Canada will be among the most sought after properties as there was a rise in Chinese overseas property investing between 2019 and 2020.7
Overall, countries that allow international travels have a successful containment over the virus and a healthy property market outlook will continue to attract Chinese buyers in the years to come.
Sources: 1; China plans to vaccinate 50 million people before the Lunar New Year. 2; US$250 billion cross-border real estate deals done in 2019, says Juwai.com. , 3; How Covid-19 is fuelling Lunar New Year second home sales. 4; Guangzhou's housing watchdog clamps down on homeowners colluding to inflate home prices. 5; Chinese buyers bullish despite challenges. 6; How your brand can thrive on social through Chinese New Year 7; Understanding Chinese ConsumersUnderstanding Chinese Consumers
