Close to 60% of high-net-worth Chinese buyers, people with more than 10 million yuan ($1.7 million) have left China or are considering leaving.
Number of Chinese buyers leaving Mainland increasing
According to the report by Bain & Company, China Private Wealth Report 2013, the number of Chinese buyers leaving the mainland is up nearly 50% from two years ago and more than half of those without investments off the mainland planned on establishing such investments in the next year.
“Compared with 2009 and 2011, China’s HNWIs have more complicated demands for investment and wealth management, stronger awareness of mid- and long-term wealth management planning, and increasing demands for wealth preservation and inheritance planning,” the report said.
China has been characterized as a land of people who like to gamble, but that attitude might be different in reality. “Since our 2011 study, Chinese HNWIs have a more mature attitude toward investing and more rational expectations,” the report said, noting a shift in risk appetite. “They prefer to undertake lower-risk investments while continuing to be active in diverse wealth management activities. A growing number of HNWIs are aware of private wealth management, and a majority are turning to various institutions that can help them better manage their wealth.”
Chinese market affecting Australian real estate
The growing affluence of the Chinese market can be most easily seen in high-end real estate in neighboring Australia, where property values in posh neighborhoods favored by the Chinese area increasing at a 30% annual clip, nearly three times faster than the overall market, according to a report in Bloomberg.
It’s not just Australia that is witnessing rising property values due to Chinese interest. According to a report from Belleville, Illinois-based Demographia, an urban development consultant, home prices in Hong Kong have almost doubled since 2009, driven in large part by Chinese buyers. In Vancouver, mainland Chinese are the largest group of foreign buyers and are a significant portion of buyers in Singapore as well.
When attracting a Chinese home buyer, the deal can be won or lost based on the layout of the house, with Feng Shui design themes winning the day. Home designs that have front doors that allow people to peer into the bedroom are shunned, as are too many sharp or irregular angles in the house, according to the Bloomberg report. Feng Shui translates into “wind and water” and is a design concept that requires harmony with nature and Chinese beliefs about energy