The current Chinese property market is a mix of joy and concern. For the average citizen, the series of new property policies and increased regulation in China may lead to a decline in housing prices. However, the strictest property market controls in history—which now account for property ownership, mortgage history, marital status, and impose restrictions on purchases, loans, commercial-residential properties, and even burial plots—have caused significant concern among many high-net-worth individuals.
Faced with wave after wave of purchase restriction policies, where is the Chinese property market headed? Some analysts believe that against this backdrop, housing prices are highly likely to trend downward. Coupled with the uncertain direction of the RMB and a bleak outlook for the property market, this environment has left China's wealthy population anxious. Where is the safest place to put assets? How can they better protect their wealth, reasonably allocate assets, and achieve value preservation and appreciation?
Chinese People Spent $33 Billion Doing the Same Thing
Recently, "Global Capital Flow" data showed that China's overseas commercial and residential real estate investment reached $33 billion in 2016. Data indicates that last year, the total investment by Chinese buyers in overseas real estate reached $33 billion, with 82.4% of Chinese buyers investing more than 10% of their total assets in overseas markets.
Currently, 74.9% of Chinese people purchasing property overseas do so for investment purposes. The boom in overseas property purchases occurred between 2011 and 2012, initially driven primarily by self-use needs such as immigration and education. In the last two years, clients with purely investment motives have accounted for over 50%, as the Chinese middle class and above have developed a need for asset allocation.
Purchasing Property Overseas: Reaping Both Returns and Residency
In recent years, more and more Chinese people have chosen to allocate assets through overseas property purchases. High-quality education, obtaining immigration status, and permanent property rights are also important factors attracting the attention of high-net-worth individuals in China to overseas investment. The demand for property purchases in Europe by Chinese investors has also shown a "burst" trend in recent years. According to assessments by authoritative economic institutions, there is still at least 20% room for growth in future European real estate prices.
Currently, European property prices are at a stage where they offer high cost-effectiveness and promising future returns. In addition to investment returns, purchasing property overseas can also secure permanent residency. Countries such as Spain, Greece, and Portugal allow for three-generation immigration through property purchase. The immigration requirements are simple and convenient, the living environment is superior, and EU status holds high value. More importantly, the benefits of this status allow children to enjoy free, high-quality public education and better career development opportunities; the entire family's medical and retirement benefits can also be more effectively guaranteed.
Taking Spain as an example, investors only need to purchase property worth 500,000 Euros or more to quickly obtain residence permits for the whole family, allowing them to enjoy a superior living environment and an international lifestyle. Moreover, with the recovery of the Spanish economy, the real estate market is warming up, the trend of rising housing prices is evident, investment prospects are good, and returns are substantial. For more details on Spanish investment immigration, please consult the Worldway Immigration Group: 400-138-2929.