The demand for Chinese Real Estate Investors is stronger than ever brokers are reporting.
In the aftermath of Beijing’s latest crack-down on the flow of capital investment abroad many speculated that market driving & defining demand from Chinese buyers was going to be severely tempered, if not come to an end.
This has been the latest in a series of attempts by the state to restrict large scale outbound spending in this way but it’s important to bear in mind than no previous attempts reduced either demand or Real Estate acquisition. Indeed, spending has increased year on year from the Mainland China region.
Continual Year on Year Growth in Chinese Investment
An Optimistic Outlook For Real Estate in China
This latest policy change was a major concern for markets including New York where in 2016 alone $14.3 billion came in from Chinese investors. Sydney boasts similar with $12.8 billion whilst Vancouver still is a powerhouse at $11.6 billion of Chinese Investment.
The reality actually remains optimistic. Brokers from major players including; Knight Frank, Savills & Chinese Brokerage ‘Shiju’ are all reporting increasing overseas property investment from buyers.
Knight Frank’s data showed sales values tripled in the second quarter even suggested the potential of 2017 being a record-breaking year for the firm.
Polarisation in Terms of Spending
One change that is being witnessed is the polarisation towards either mass market property or super high-value luxury investments. Shiju chief executive Eric Lam commented that; “typical buyers are spending $450,000 for US home in markets such as Texas or Florida’.
Then there are the luxury investments, Ronald Serry Australian Property reported a 15% increase in prospect interest for luxury units on the Gold Coast, typically $3.5 Million AUD and above.
The ‘China Smile’ of Investment
The China Smile is an interesting phenomenon in the US with the below curve the prime locations for investment. This is driven by the following factors;
- Popular Boroughs/Districts
- Education ‘Hot Spot’ Area’s
- Industry Locations such as Hollywood
- Business Hubs such as Silicon Valley
- Combination of Low Price Points/High Price Points
- Entertainment fuelled such as Theme parks
This trends are seen across the globe but this is a fascinating example from the US. Specific regions need to target the Chinese Market and sell the lifestyle benefits in the most targeted way.
Visual to explain the China Smile by Investorist
How to attract Chinese Real Estate Investors?
The core approach in China is targeted keyword searches on Baidu and News Applications. Let’s explore these approaches briefly (see a much more in-depth guide here); https://www.marketingtochina.com/guide-sell-real-estate-china/
Baidu, ‘China’s Google’
Baidu is the ‘bread & butter’ of Real Estate Lead Gen in China. It’s China’s Google with a 75% dominance over the Chinese search engine market. It’s a powerful tool for web visibility in China;
Here’s a key overview;
- You need a Quality Chinese Site to drive traffic
- You must rank on competitive keywords
- A clear call to action and lead generation form to capture prospects
- Quality listings need to appear in the Chinese media
On Baidu you must focus on building the visibility & reputation of projects.
Baidu PPC Vs SEO
PPC (Pay Per Click) is a strong strategy for paid visibility based on targeted keywords, in Real Estate it offers ROI in terms of spending for lead numbers (contact us for more info).
SEO is the ranking of your site in the natural results, it generates the highest quality of leads over time, ask yourself how do the most serious prospects source investment opportunities? Paid ads or natural results? The best strategy is a combination of the two.
Screenshot of Baidu Paid Results / Organic Results
News Apps – Targeted Ads
Investors turn to targeted News Apps for information on investment prospects.
They categorize their news feeds. Targeted ads need to be inserted in the feed alongside relevant news. Users click the ad which leads to an HTML5 contact form to capture the lead.
News Apps can drive big numbers in the China market with a 15% penetration rate.
In-Feed News App Ads to Targeted Followers
PR – Media Exposure your Projects
Media Exposure for Projects is vital. You must be visible on targeted platforms such as;
- Sohu Business
- Tencent Finance
- Sina News
The key is connecting portals to Chinese media sources and creating quality Chinese Press Releases that connect to local trending conversations and topics in the investment sphere.
The exposure on PR articles typically can reach 40,000 views per article, great exposure on targeted media.
PR can centre on specific projects/units, the brand reputation of the company and should engage with popular Chinese topics.
DAMAC have achieved huge exposure & lead generation figures in the Chinese market.
Intelligent strategy is the key.
We are a specialist digital marketing agency with a focus on Real Estate. Please contact our experts for more information. We have a host of successful projects in terms of driving substantial results.