The Chinese are becoming among the most important international property buyers. Above, a potential investor looks at a model of a luxury development in Hawaii. Tom Spender for The National
The Chinese are becoming among the most important international property buyers. Above, a potential investor looks at a model of a luxury development in Hawaii. Tom Spender for The National

Foreign climes lure rich Chinese



The river views are out of this world, the multiple bedrooms are large and equipped with only the finest fittings, and the fashionable outdoor terrace seems perfect for an alfresco breakfast. And the price tag for this luxury apartment in Western Australia? Well, as they say, if you need to ask, you probably cannot afford it.

Building Brics Emerging giants

Keep pace with the emerging economic powerhouses Brazil, Russia, India, China and South Africa Learn more

Yet what was perhaps most notable about this apartment in Perth's Bayview Terrace, which incidentally was priced at A$6.88 million (Dh26m), is that it did not stand out among the many houses and apartments being marketed at the Luxury Properties Showcase (LPS) held recently at a five-star hotel in Beijing.

There were countless other multimillion-dollar penthouses, villas and even chateaus and islands being promoted to Chinese investors.

The Chinese are becoming among the most important international property buyers, and having accumulated vast fortunes on the back of rapid economic growth, many are looking at the top end of the market.

"The Chinese purchasing power is huge," says Bob Clarke, the managing director of Herald Land, an agency based in Dubai that markets land and property in the UK, and which was present at the LPS event.

In China there is, says Tommy Chia, the president of Istana, a developer based in Singapore, "quite a lot of loose money around" looking for a home.

"A lot of well-heeled Chinese would like to put their money outside [China]," he says. "One to four million dollars is not a lot of money for them. Given the right development, the right location, I think you can extract the right people."

The reasons Chinese investors are looking overseas are various.

There are concerns that the domestic property market is a bubble and could crash, wiping out the value of investments. Also, the authorities have restricted multiple property purchases in China to try to cool the real estate sector, meaning many investors have surplus funds that cannot be invested at home.

There are buyers looking for a place for their children to stay while at university, while other investments will be used as holiday homes. Some purchases are made as part of emigration plans.

"We're starting to see them buying almost anywhere in the world," says Olivier De Treglode, who organised the LPS event. "There is a wide range of profiles of buyers and they have so many different reasons to invest - education for their children, investment, to diversify their lifestyle or for prestige."

There are key markets attracting larger numbers of Chinese buyers.

Agents in London have predicted that soon as many as 10 to 20 per cent of purchases will involve Chinese buyers, while in Manhattan one agency has set up a Chinese-language website. Australia and Canada are also popular, while reports have suggested the number of properties in Singapore being bought by Chinese investors has doubled in three years, leading agencies from the city state to open branches in China.

"It's been fast-growing for the past year," says Michael Wan, the senior associate sales director of CBRE Realty Associates in Singapore.

Another Singapore agent, Jasmine Ye, the general manager of KoP Properties, says Chinese buyers are often looking for properties that are "very high end".

"They want something unique," she says.

Previously, Indonesians and Malaysians made most purchases in Singapore, but now Chinese are, at least, buying just as many properties as any other group, says Mr Wan. Some invest with a view to getting residency, while others are planning to have their children educated in Singapore.

"Some of them, their kids are only four or five years old and they're already buying," he says.

"Singapore is a stable market. It's not a bubble. There is 5 to 20 per cent capital gain annually depending upon the area. In China they have experienced growth of 100 per cent. It's a bubble formation."

Indeed potential Chinese investors such as Dai Guowei, who works in banking, say the risk of a fall in Chinese property prices is a key factor for the growing interest in overseas schemes. Foreign property is regarded as a haven compared with China, where the long-term trajectory for the market, and for political developments that could influence it, is uncertain.

"Chinese property prices have got to such a high level, so they're likely to go down rather than go up," he says. "So many Chinese people like to move their capital overseas to hedge the risk of their investing in China before."

For many Chinese, restrictions on buying foreign currency, with a maximum of US$50,000 (Dh183,655) each year imposed, have limited their ability to buy property overseas. Many have sought ways around the rules by pooling the allowance of friends or joining with other buyers to put together enough for the deposit on a property. Such teams of buyers have been active in the UAE market. Figures for the total amounts invested by Chinese in property overseas do not appear to have been compiled.

Just as Chinese investors have been putting their money into overseas property, so Chinese developers are now starting to become international players.

It was announced only this month that Zhouda Real Estate, based in Hebei province near Beijing, is investing $558m in residential and commercial property projects in Malaysia.

It is really the investors rather than the developers from China who have been blazing a trail overseas, however, and amid talk of double-dip recessions abroad, their presence is particularly significant.

Although in already buoyant markets an influx of Chinese investment risks pushing up prices further, in slower parts of the world, such as sluggish euro-zone countries, their arrival is welcomed.

"In Italy, at this moment it's very quiet because of the crisis," says Luca Maria Crestani from the sales department of Jesolo Lido Village, a beachside project near Venice. A bilingual English-Chinese brochure has been produced by the development to attract the interest of potential buyers from the world's most populous nation.

"There is this opportunity. We try to understand the market here [in China], the situation and to understand if the Chinese people like Italy," he says.

"We are starting now. Some years ago we tried with Russians, now we try with China. We don't know. We hope."

twitter: Follow and share our breaking business news. Follow us

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

You Were Never Really Here

Director: Lynne Ramsay

Starring: Joaquim Phoenix, Ekaterina Samsonov

Four stars

SPECS

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

COMPANY PROFILE

Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

INDIA'S TOP INFLUENCERS

Bhuvan Bam
Instagram followers: 16.1 million
Bhuvan Bam is a 29-year-old comedian and actor from Delhi, who started out with YouTube channel, “BB Ki Vines” in 2015, which propelled the social media star into the limelight and made him sought-after among brands.
Kusha Kapila
Instagram followers: 3.1 million
Kusha Kapila is a fashion editor and actress, who has collaborated with brands including Google. She focuses on sharing light-hearted content and insights into her life as a rising celebrity.
Diipa Khosla
Instagram followers: 1.8 million
Diipa Khosla started out as a social media manager before branching out to become one of India's biggest fashion influencers, with collaborations including MAC Cosmetics.
Komal Pandey
Instagram followers: 1.8 million
Komal Pandey is a fashion influencer who has partnered with more than 100 brands, including Olay and smartphone brand Vivo India.
Nikhil Sharma
Instagram followers: 1.4 million
Nikhil Sharma from Mumbai began his online career through vlogs about his motorcycle trips. He has become a lifestyle influencer and has created his own clothing line.
Source: Hireinfluence, various

Specs: 2024 McLaren Artura Spider

Engine: 3.0-litre twin-turbo V6 and electric motor
Max power: 700hp at 7,500rpm
Max torque: 720Nm at 2,250rpm
Transmission: Eight-speed dual-clutch auto
0-100km/h: 3.0sec
Top speed: 330kph
Price: From Dh1.14 million ($311,000)
On sale: Now

Plan to boost public schools

A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.

It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.

Aspects of the school model will be extended to international private schools, the education minister has previously suggested.

Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.

ULTRA PROCESSED FOODS

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars

- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes

- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

We Weren’t Supposed to Survive But We Did

We weren’t supposed to survive but we did.      
We weren’t supposed to remember but we did.              
We weren’t supposed to write but we did.  
We weren’t supposed to fight but we did.              
We weren’t supposed to organise but we did.
We weren’t supposed to rap but we did.        
We weren’t supposed to find allies but we did.
We weren’t supposed to grow communities but we did.        
We weren’t supposed to return but WE ARE.
Amira Sakalla

THE HOLDOVERS

Director: Alexander Payne

Starring: Paul Giamatti, Da'Vine Joy Randolph, Dominic Sessa

Rating: 4.5/5