Foreign projects a hot ticket at Beijing expo

BEIJING: The number of overseas property projects exhibited at the spring session of the Beijing Real Estate Expo doubled to more than 80 from last year, organisers have said.

The expo, which began last Thursday, Apr 7, attracted overseas vendors from more than 20 countries and regions, including the United States, Australia, Canada, Britain, Singapore, Thailand and Hong Kong.

Before 2010, there were fewer than 20 projects each year, while last year, the number rose to more than 40 during the autumn event, said Zheng Xiangdong, one of the organisers.

Thanks to robust economic growth, Chinese consumers have a growing appetite for international properties. The mainland economy would continue its strong momentum in the next decade with price gaps between domestic and overseas properties shortening, so international property professionals would embrace a larger market in China, said Steve Dawkins, a partner in Fortune RE Group, a first-time attendee at the expo.

Overseas vendors brought a variety of projects, from luxury villas in California worth more than US$4 million (RM12.08 million) to apartments in Istanbul valued at less than 340,000 yuan (RM157,199.38), according to organisers.

Austar Property Consulting's Ken Zhang said Australia's property market was fairly stable, with an annual price increase of 7% to 9% and a rent rebounding rate of 5% to 7%. As a result, many Chinese families may buy properties in Australia if their children travel there to study.

"We are promoting luxury villas here because we found many luxury houses in Hong Kong were purchased by people from the mainland in recent years," said Lipbon Property International's Colla Lai.

Chinese buyers generally fall into four groups: immigrant households, overseas student families, wealthy entrepreneurs and people with high incomes.

"I was not interested in overseas projects, but I changed my mind after reading these advertisements. It seems that houses in downtown Bangkok are cheaper than those on the fifth ring road of Beijing," said Wang Lu, a visitor at the expo.

"I am not allowed to buy a house in Beijing after the government tightened the real estate market, so I will consider buying one overseas if there is a suitable choice." The inducement to invest in overseas property was now greater than ever, said Tim Wang, China partner of Fortune RE. Wang pointed to many provinces restricting home ownership to a maximum of two properties, and new tax measures  intended to limit Chinese property investors from buying apartments or houses at home.

Like Fortune RE's Steve Dawkins, Janet Soh Bee Chin from Choice Properties Asia took part in the expo as a newcomer.

She said her company came to learn more about consumer demand in China.

Austar's Zhang said that although it was convenient to invest in overseas properties through overseas agencies, Chinese consumers should be cautious when choosing an agent and make a trip to the country or  region, if possible. — SCMP