How do fears of a Chinese real estate collapse affect real estate agents abroad?



Have a look at the headlines in China this week….
Forbes: China Property Collapse Has Begun -Gordon G. Chang 4/13/2014
Forbes: “Without question, everyone thinks there is a bubble.”
International Business Times: China Housing Market Bubble Start to PopJerin Mathew
April 14, 2014
Wall Street Journal: This Chinese City’s Property Market Is Even Chillier Than Its -22-Degree Weather, Chinese port city of Yingkou Apr 15, 2014

Chinese real estate investors are getting jittery about prices in China and looking overseas. How can you attract them?

Don’t get me wrong. I don’t have a crystal ball. No one knows what will happen in the future. However a much easier question to answer is what do the Chinese clients you want think will happen and how can you help them.

The easiest way to take advantage of this situation is to show the safety and security of investing in your area rather than talking about the risk in China. Believe me, the clients will put it together themselves. They are the ones at risk.

What simple, easy, things can you do to promote your listings, services and company in China?

Write blog posts or make simple smartphone videos
Topics to write on or to make videos about:
Historical pricing data to show the relative value in your area
Rising rent data
Security of asset ownership
Ability to pass land on to heirs in future

Write content that explains historical data (i.e. show that historically real estate prices are low. this is easy to do in most areas because it’s simply true. explain safety. safety of assets, legal protection, ownership of land (in china the government legally owns all the land and, regardless of land type, the only option is a long term lease) As land is owned by the government, many issues arise. insecurity, lack of ability to invest long term (how do you make a robotic factory with a 100 year life span if your lease is only 70 years?) Talk about the legal protection owners have in your area. Talk about the potential returns as land is historically low. Talk about trends like the current rising ones. Talk about rising rents in your area. Talk about things that put the client at ease.

You don’t want to put down China saying its dangerous but instead contrast your area. Chinese land has been rising at an incredible rate. Many buildings and entire cities are empty. Talk about your area. Occupancy, productivity, ROI, rising prices (from very very low levels) Talk about how renting is the new black. Many young don’t want to buy cars or houses and this is driving rents sky high. Look at London and San Francisco ! Workers are being driven out because rents are so high. But prices are not yet. Talk about the incredible timing now. These are all attractive to Chinese who are in avery different trend.

Talk about rising rents, low prices that hit bottom and are rising, talk about security or assets-legal protection. Ability to pass land on the heirs. Long term ownership. XYZ family down the street has owned here for 50 years. More than anything Chinese investors are looking for security. Appreciation is nice. ROI is nice, protection is key. They are already pretty rich. Of course they want to be richer but values change. Safe food, protection, education become more important. Give the people what they want.

To get the inside scoop on finding and selling to Chinese buyers go to


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