There are less than 12 months, the Chinese government was shocked when the results of a comprehensive study of affluent Chinese have been published. The organisations behind the survey are very respectable, Bain & Co and the China Merchant Bank.
The survey found that many agents in the world had ever felt that rich Chinese, for various reasons, wanted to leave China, and believe that buying a property abroad would allow them to escape.
Many wealthy Chinese are looking to leave the mother land, here is the example of Amanda Sun to better understand this phenomenon.
Amanda Sun bought three houses a 4-million euro value on the French Riviera after having visited once as a tourist.
Sun is Chinese, 43 years old and owner of a small business, according to an article in a newspaper. It is typical of Chinese buyers that have saved many European developers and agents to lower prices over the past two years.
57% of affluent Chinese have considered immigration to buy real estate properties abroad. About 20% actually completed immigration procedures in countries such as Australia, the USA and France, or plan to do so soon.
These percentages represent a significant number of people, because China is the fourth country in the world in terms of the affluent. Each year, the cohort is growing by nearly 10%. According to Hurun, France is still the most visited country in the world by the Chinese, who enjoy the French luxury. Also according to Hurun, France could become in 2015 one of the preferred destinations by the Chinese for our immigrants and education of their children.
Even if they set their roots in France, Chinese as Sun will also keep a presence in China. For example, the published study shows that 85% plan to keep their Chinese passports. Often women and children live abroad, while the husband spends most of his time in China. Chinese emigrants could still run businesses in China. They generally travel abroad for their children. They think that Western schools and universities are better than their Chinese counterparts, and that life abroad would give their children an advantage.
A residence abroad may also be helpful if China would go through policy changes, such as new taxes on wealth or social unrest. China is a rapidly changing country. Riots, strikes and protests have doubled over the last five years. Emigration and education of children are only two reasons why wealthy Chinese buy goods in France. The third is investment.
Sun thinks that in France “the legal system is better.” She plans to emigrate to France to live in one of its new homes and find tenants for the other two.
Real estate investing is also a risk diversification. Instead of just investing in real estate in China, the Chinese put some of their money abroad so they do not lose everything if the Chinese real estate market is going down. Chinese parents often buy apartments for their children studying in France. In the Latin Quarter (5th arrondissement), a Chinese recently bought a 1.7 million euros apartment to serve as student housing.
Chinese love brands that convey the seriousness and safety. French promoters and real estate agents must develop their brands around Chinese people to win their trust.