Three Major Drivers Fuel the Overseas Property Buying Boom

With the tightening of domestic real estate market regulations since the financial crisis, the trend of Chinese citizens purchasing property overseas has become increasingly intense. It seems that wherever there is property, there are Chinese buyers; countries such as the United States, Australia, Portugal, and Cyprus have formed a "map" of Chinese real estate investment.
The National Association of Realtors in the United States released statistics for 2012 showing that Chinese buyers purchased nearly $12.3 billion worth of U.S. real estate, second only to Canadians. However, the median home price of $425,000 was far higher than that of other foreign buyers, ranking first, with nearly 70% of Chinese buyers paying in cash. Local real estate agents note that most overseas property investments are now made for the purpose of asset preservation and appreciation, so most choose properties on the East and West Coasts of the United States. However, Chinese clients looking for education for their children also show a strong preference for school district housing, which is "basically snapped up as soon as it hits the market."
In addition to the United States, regions such as Toronto in Canada, London in the United Kingdom, and Singapore are also popular areas for Chinese investors to purchase property abroad, with 20%-40% of foreign buyers coming from China. Chinese buyers account for over 40% of property purchasers in Vancouver, Canada; and in the famous Canary Wharf financial district of London, UK, about one-third of newly sold homes were purchased by Chinese buyers.
Industry insiders analyze that there are three main drivers fueling the global property buying spree by Chinese citizens: First, the demand for immigration is increasing. Judging from the high proportion of cash payments, these consumers are not very concerned about high property prices; their true goal is to obtain residency in the host country. This situation is particularly common in European countries that have successively introduced "residency by investment" policies, such as the currently popular Portuguese Golden Residence Permit Program, the Greek Second Home program, and Cyprus property investment immigration. Second, China is gradually strengthening its ties with the world. As the proportion of children studying abroad expands and business operations become increasingly globalized, the demand for wealthy individuals to purchase property overseas has grown. Third, the appreciation of the Renminbi in recent years has boosted enthusiasm for overseas investment, and Chinese consumers have always had a special affinity for real estate.
These three major drivers are pushing Chinese investors to purchase property on a global scale, with many now living an overseas life characterized by "having both property and status."