夏威夷房地产 – Real estate companies go where Chinese go

While the Chinese real estate industry is marching into the overseas market, its first choice is usually countries where there are many Chinese people, such as the US, Canada, Australia, New Zealand, Malaysia and Singapore, International Finance News reported.

Chinese real estate enterprises investing in the overseas property market can date back to the year 2006, when Shanghai Industrial Group, joined by Ningbo United Group, Jinjiang International Group and Greenland Group, made a $1.346 billion investment of the “Baltic Pearl” project at Finland Bay in St. Petersburg, Russia.

The most recent investment was made on October 2012. Greenland Group and US Forest City Group started a joint venture and made an acquisition of the Brooklyn Atlantic Square real estate project. The total investment exceeded $5 billion and is the largest single real estate project in the last 20 years in New York. Greenland Group has successfully entered six countries including the US, South Korea and Australia.

Actually, top Chinese real estate enterprises have never missed any parties that explore the overseas market.

Since 2012, large real estate companies including Vantone Real Estate, Capital Group, China Railway Construction Corporation and SOHO have all had real estate projects or made investment plans in the overseas market.

“They would be ashamed to claim themselves as ‘first-tier companies’ if they do not explore the overseas market,” a real estate commentator joked.

In 2012, Dalian Wanda, China Oceanwide Holdings and Russian North Caucasus Resorts company signed an intent agreement with a total investment of $2.5-3 billion, planning to build large cultural, tourism and commercial facilities in Moscow, St. Petersburg and North Caucasus.

Earlier this year, China’s biggest real estate company, Vanke, entered the US by buying a 70 percent stake of Block 201 in Folsom Street, San Francisco from its real estate veteran developer, Tishman Speyer.

Another Chinese real estate giant, Country Garden, has invested five real estate projects in Johor Bahru in south Malaysia last year and now these projects are for sale. The thousands of houses built have been proved to be very popular and over 10 million yuan worth of houses have been sold. What is worth noticing is that 60 percent of the buyers are Chinese.

It is easier for those Chinese who want to make a property investment in a foreign country to choose large domestic enterprises. They are more familiar to the Chinese people and can be quickly identified with, Country Garden explained.

In fact, the first choice for most Chinese real estate enterprises who have marched into the overseas market is those countries where there are many Chinese residents, such as the US, Canada, Australia, Malaysia, Singapore and Japan.

In recent years, the number of buyers from the Chinese mainland has been soaring, leading to the heating-up of the overseas property market. In Europe and the US, many natives have complained that the influx of Chinese investors has driven up house prices.

Global real estate service provider Savills’ data show that buyers from the Chinese mainland have become the largest buying group of private residences in Singapore since 2010, beating the Malaysians and Indonesians.

“We go where Chinese people go,” Vanke President Yu Liang said straightforwardly.

Although some countries have rules that state a certain proportion of the houses must be sold to the natives, the large number of Chinese buyers has given Chinese real estate developers enough confidence for their overseas gold rush.

CHINA – Mainlanders going overseas up 20 pct

BEIJING – The number of Chinese mainland residents going overseas reached 38.56 million in the first six months of the year, up 19.75 percent year-on-year, the Ministry of Public Security said Sunday.

The number of exit and entry across the Chinese border reached 208 million in the six months, up 6 percent from the same period of last year, according to a statement of the ministry’s Bureau of Exit and Entry Administration.

The numbers of mainland residents, Hong Kong and Macao and Taiwan citizens, and foreigners crossing the border during the period was about 76.7 million, 105 million and 26.78 million, respectively, the statement said.

The first five destinations reached by mainland residents are Hong Kong, Macao and Taiwan as well as the Republic of Korea (ROK) and Japan, it said.

The number of entries by foreigners was up nearly 4.6 percent year-on-year in the six months, most of whom came from the ROK, Japan, the United States, Russia, Malaysia, Vietnam, Singapore, the Philippines, Mongolia and Australia, according to the ministry.

Most of them crossed the Chinese border via airports in Shanghai, Beijing and Guangzhou, the statement said.

Police at the border found 1,337 persons involved in illegal entry or exit, discovered 24,200 persons violating exit and entry laws and regulations, and seized 343 alleged escaping persons during the first half of the year, the ministry said.

CHINA DAILY

Asia overtakes North America in millionaires

SINGAPORE – The number of high net worth individuals (HNWI) in the Asia-Pacific region rose 1.6 percent to 3.37 million in 2011, surpassing that of North America for the first time and becoming the world’s largest number, according to the Capgemini-Royal Bank of Canada World Wealth Report released Wednesday.

However, the amount of investable wealth held in the region was $10.7 trillion, which was still lower than the North America’s $11.4 trillion.

The HNWI is defined as those with $1 million or more at their disposal for investing.

In particular, the region’s “India and Hong Kong topped the list of countries losing HNWIs in 2011,” the report said. India’s HNWI population fell by 18 percent while that of Hong Kong saw a slide of 17.4 percent.

Meanwhile, Singapore’s HNWI number drop by 7.8 percent to about 91,200, mainly due to drop in exports and loss in equity-market capitalization.

The report attributed the HNWI number’s fall to market volatility last year when market observers concerned that the eurozone’s debt crisis might overwhelm some larger economies. ” Investors focused on safety in 2011 as economic uncertainty weighed on sentiment,” the report said.

China Daily