Wanda says there’s a new international buyer for luxury property who’s filling the gap left by mainlanders
Wanda group spokesmen say buyers from the Middle East have come out in force, snatching up units at one Gold Coast project
China’s property giant Dalian Wanda Group said they are unfazed by concerns about a fall in mainland buyers for its overseas projects owing to recent capital outflow controls, as their luxury properties have attracted global investors, especially those from the Middle East.
The developer, chaired by China’s richest man Wang Jianlin, has expanded its footprint to top cities across the world, including London, Sydney, Los Angeles and Paris.
“We have built up a very diversified client base,” Jim Miao, a senior manager of the International Real Estate Center under Dalian Wanda Commercial Properties, Wanda’s property arm, told the Post.
“Aside from clients from mainland China and Hong Kong, many are local and Middle Eastern.”
He added that Middle Eastern buyers had been active, with one single transaction accounting for 20 units at Wanda’s mixed-use project Jewel Residences Gold Coast.
On Friday, Wanda launched a marketing push in Hong Kong for its One Nine Elms project in London and the Gold Coast Jewel in Australia. The product launches coincide with efforts earlier this week by the Chinese government to restrict yuan outflows, which has fuelled concerns that Chinese investors may put the brakes on their aggressive acquisition of overseas luxury properties.
Douglas Su, senior manager of International Real Estate Center under Dalian Wanda Commercial Properties, said the developer has shifted its focus towards international clients due to the recent policy tightening on yuan flows. He added that the company was focusing part of its marketing efforts in Hong Kong to tap potential interest from local buyers as well as mainlanders who can access funds offshore.
Wanda’s 57-storey One Nine Elms, the tallest residential building in central London, launched sales in 2014 and has sold about 60 per cent of its 439 flats so far, according to the company. Meanwhile its 512-flat oceanfront Jewel Residence project on Australia’s Gold Coast, likely had a slower start, as it was reported that only 25 per cent of available units have been sold since sales launch a year ago. Wanda did not disclose any official sales figures for the project.
The company said they are offering units at competitive prices. The smallest flat at One Nine Elms costs about £1.5 million with an average price about £1800 to £2,000 per square foot.
Wanda plans to speed up its overseas expansion and is eyeing opportunities in US cities such as Boston and Seattle, Su said.