This article by OPP Connect editor Adrian Bishop was originally posted on OPP Connect.
A new overseas property website just launched in China claims to be the first to concentrate on Australia and the United States.
The Chinese-language site, Meiaoju.com, aims to provide quality listings, real estate information and high levels of customer service. Currently, most of the properties and features on site relate to the Australian market.
No fees will be charged to overseas real estate developers for the first year and Meiaoju will review the qualifications of developers to help protect buyers, according to the techinasia.com website.
It is claimed that Meiaoju.com has agreed to partner with a number of large real estate developers in Australia and the US and include their property listings.
Meiaoju’s founder is Wu Bo, who is also behind one of China’s top daily deal websites and secured funding of 50 million renminbi, just over $8 million in U.S. dollars.
The leading Chinese overseas property website, Juwai.com, is currently ranked just under 14,000th in the world, according to data company Alexa.com.
According to Juwai.com, 63 million Chinese people have enough wealth and income to purchase international property and 90 million Chinese search for property online every month.
Global investment bank Credit Suisse predicts that Chinese nationals will invest $44 billion in Australian residential real estate over the next seven years.
Following concerns in Australia that locals are being priced out of the market by Asian property buyers, the House of Representatives has agreed terms of reference for its inquiry into foreign investment in Australian residential real estate and has called for submissions from the industry and concerned parties.
In the United States, buyers from China are responsible for 12 percent of all foreign transaction, up from just 5 percent in the last six years, according to 2013 figures from the National Association of Realtors. The top five areas they have targeted are Las Vegas, Los Angeles, Orlando, Irvine, California and Detroit.
Meanwhile, foreign investment in mainland China’s real estate has hit a 10-year low.
The proportion fell to 0.08 percent in the first two months of this year, the lowest in at least a decade, according to data from the National Bureau of Statistics. The ratio has never exceeded 2 percent.
David Blumenfeld, a partner focusing on real estate at international law firm Paul Hastings, told SCMP.com, “I don’t think foreigners are losing their interest, but people are becoming more realistic” as economic growth slows and transitional challenges loom.
For the full TechinAsia.com story go to: http://bit.ly/1pyxmjA