Monday, 10 February 2014
Chinese Increasingly Looking at Foreign Lands for Property Investments
Property investments in overseas markets seem to be a lucrative proposition for Chinese investors. The Chinese are increasingly investing significant amount of money in purchasing property in foreign countries either to establish businesses or to move their families and set up new homes.
These details emerged from China’s migration status report (titled The Annual Report on Chinese International Migration 2014) that was released on Wednesday. The report reveals that there is a considerable number of Chinese investors that are going abroad to purchase properties and establish a permanent residence in North America and Europe, among other regions.
In fact, the report further states that in 2011, China was the second biggest investor in overseas properties in the U.S. Interestingly, nearly 20% to 40% of foreign property investors in London and Toronto are Chinese.
The Chinese appetite for investment seems to be reaching an all time high given that the middle class here is burgeoning and the rates of savings among citizens are significantly high. This forms the perfect foundation for Chinese investors to make investments in increasing their assets.
And, it is important to note that China is a country that’s rapidly aging. This indicates that the rate and volumes of investment will continue to rise over the next few years.
In fact, according to statistics available with the U.S. State Department, nearly 6,124 applications from China obtained the investment immigration visa (EB-5) in 2012. This figure is eight times higher than that of 2010.
According to a survey conducted by SouFun International that comprised 12 million potential buyers of property, nearly 43% of the respondents said that their key reason for purchasing property overseas is migration. Other reasons that respondents cited included better educational resources, a more secure investment, and a better quality of life in foreign countries.