Chinese luxury investors: what you need to know
Published on 10th September 2014, 16:26
From watches, cars and wine to Chinese classical art and courtyard houses, China’s ultra-rich love collecting. 60% of Chinese millionaires have a collection of some sort, and they consider it investment and hobby – all rolled into one.1
Naturally, this bodes well for the rest of the world. Many hunger for Chinese buyers, whose massive spending on luxury goods has now made them synonymous to walking fountains of wealth.
The newest toy China’s super-rich have their eyes on are superyachts, which used to be a niche pastime for Chinese.2
However, before yacht companies begin counting their chickens before they hatch, they better understand some of Chinese buyers’ unique preferences and taste.
Chinese buyers can have varied requirements for their yacht. They tend to go on day cruises, but they prefer more shade and less cabins. Entertainment is vital, so they want karaoke machines and space for mahjong tables.2 Catch our drift here?
The same applies to selling luxury homes to Chinese buyers. The first thing you need to ask is: what do Chinese overseas property buyers want?
Here are some quick pointers:
Wok kitchens: Chinese cooking requires a separate space with strong ventilation, so incorporating a wok kitchen is a huge plus point.3
Location and position: Chinese buyers may prefer not to buy properties facing a T-junction, blocked by a railway or in a cul-de-sac. In feng shui beliefs, these locations either generate negative energy or create an energy blockage.4, 5
Lucky numbers: Chinese buyers may be turned off by properties with the unlucky number “4”, which sounds similar to “death” in Chinese. Instead, promote those with the lucky number “8”, or consider changing the numbers to avoid having the number “4”.3
Low-maintenance properties: Generally, properties with a sprawling garden may spell “hassle” to Chinese buyers, many who may prefer paved backyards that require no maintenance.4
If you have properties that match the above, then you’re on the right track. Your next step is to make sure those features are properly extolled to prospective Chinese buyers.
Sources: 1. Hurun Report “The Chinese Millionaire Wealth Report 2013” ; 2. SCMP; 3. WSJ; 4. Property Observer; 5. The Telegraph
