Chinese property buyers will continue to buy real estate properties in Asia-Pacific in 2020 with the region to become the most favored in the years to come. Chinese investors are inquiring for Asia-Pacific residential properties at a higher rate last year than what was observed in the previous years.
According to property portal tracker Juwai.com, Chinese inquiries for Asia-Pacific properties are up by 57% in 2019 compared to other real estate properties in other regions. That was a five-fold increase from 2018.
To compare, only 17% of inquiries from Chinese buyers reflected an interest in buying American properties while properties in Australia, New Zealand, and Oceania, Europe, and the Middle East only get 13% each. The result of the monitoring showed a big shift since 2018 saw Chinese buyers mainly interested in acquiring real estate properties in these regions and so much in the Asia Pacific.
Georg Chmiel, executive chairman at Juwai, said Chinese real estate buyers are avoiding the US, the UK, Europe, and the Middle East since last year due to perceived geopolitical tensions. Furthermore, Asia Pacific properties are closer to their country, require less capital and therefore will bring in more financial benefit in the future. With these considerations at play, Chinese buyers have set their eyes in properties in Southeast Asia, he added.
Indeed, luxury properties in Southeast Asia are the most affordable compared to their western counterparts. For instance, one luxury apartment in Thailand and the Philippines can only cost $100,000. In Sydney, similar luxury property costs $600,000. Properties in Queens, New York is higher at a minimum amount of $650,000.
Malaysia and Vietnam will benefit greatly in this shift among Chinese property buyers. This is according to Danny Broadfield, associate director of international project marketing at Coldwell Banker Richard Ellis or CBRE, which is the largest commercial real estate services company in the world.
Asia seemed to be growing in all economic aspects. The World Economic Forum recently published a study saying that Asia can overtake the GDP of the rest of the world combined.
By 2030, Asia will make up 60% of global growth. The Asia Pacific region will also contribute largely to the world's labor force, making up as much as 90% of the estimated 2.4 billion middle class.
China and India will drive much of the growth. Indonesia, the Philippines, and Malaysia are not far behind. Much of the new members of the labor force will be coming from these three countries, hence, more of their people will also soon be leading the rise in per-capita disposable income.