Mainland property developers are expanding into overseas real estate markets to cater for a rising demand from Chinese buyers.
Banking on the expertise they have developed in local markets, and their understanding of the needs of mainland buyers, the developers decided to take the competition to global rivals and build properties abroad targeted at buyers from home.
In their sights are wealthy locals who are restricted under current regulations from buying more investment properties on the mainland, as well as those planning to emigrate or buy holiday homes.
The developers were also stung into action by a growing number of foreign projects being marketed to local buyers in the wake of economic uncertainties in their own markets. In the past few months an increasing number of developers from Britain, the United States, Italy, Switzerland and even the Bahamas have beaten a path to Hong Kong and several mainland cities to push their projects.
'For several years now, wealthy mainland buyers have shown a keen interest in migrating overseas. This creates a market,' said William Xu, general manager of marketing for Guangzhou-based Yihe Real Estate.
Privately-run Yihe developed its first overseas project in Sydney, and planned to expand into the US and Mauritius, said Xu. Others investing in properties overseas include privately-run Greenland Group, Dalian Wanda and Hong Kong-listed Country Garden Holdings.
Two weeks ago, China Vanke, the biggest mainland-listed property developer by sales, unveiled plans to set up an overseas headquarters in Hong Kong in the second half of this year. It would first consider investing in the US.