What do they spend?
Mainland investors buying overseas property can be classed into three categories, according to Rebecca Shum, executive director of international project marketing at CB Richard Ellis.
1 Mass-market buyers: These people would generally pay no more than US$1 million. The typical price range would be the equivalent of 3 million to 7 million yuan (HK$3.6 million to HK$8.5 million). Most of these buyers are looking for overseas properties for investment, because they hope their children will study overseas, or for subsequent immigration applications. Vancouver, Sydney, London and Singapore are their popular choices.
2 High-net-worth individuals: Their priority is purchasing special or 'trophy' homes, including hotel-backed residences. They are prepared to pay from US$2 million to US$50 million. They want to put their money into a mature market as they feel that real estate is the best bet. Toronto, Los Angeles, New York, London and other European cities are all prime destinations.
3 Ultra-high-net-worth investors: chairmen of listed companies; or the wealthiest individuals on the mainland. They like to buy major shareholdings in real estate companies or large land banks for future development.