US homes being marketing in Beijing
According to a recent report in the China Daily, Chinese real estate information provider Soufun is working with US marketers of real estate to bring wealthy Chinese buyers on tours of the US. The property junkets apparently target a combination of high value and bargain-basement areas and are financed in part by commissions from sellers.
The tours, which are scheduled on an ongoing basis during 2013 will take buyers to Boston, New York, Las Vegas and Atlanta as well as communities in California and Florida.
According to comments by Rachel Wen, Overseas Marketing Director for Soufun International, “Because we won’t charge people for attending the tour, the only things they need to pay for are the plane tickets, accommodations and dining.” This approach appears to follow the Chinese tour company practice of taking buyers to souvenir shops run only by companie’s that provide commission to the tour operators on purchases made by the tour group members.
In the interview, Wen reveals that these tours are a relaunch of a concept that was previously attempted in a few years ago. “We organized a similar tour back in 2009, when China’s real estate market was developing at a very fast speed,” said Wen, “At that time, however, not too many customers were fully aware of overseas home investment. “But now it seems to be good timing as the real estate market gradually recovers.”
The National Association of Realtors (NAR), a US trade group, last week reported that US home sales rose 9 percent to 4.65 million units in 2012, the highest annual total in five years.
The itinerary for the Soufun tour seems well-aligned with the findings of the NAR’s latest report. In the report, four states accounted for 51 percent of the purchases: Florida, California, Texas and Arizona. Florida was the fastest-growing destination among international buyers, including Chinese clients, accounting for 26 percent of foreign purchases. The second-most popular destination was California, with 11 percent.
Lawrence Yun, the NAR’s chief economist, has said he expects US existing-home sales to rise another 9 percent this year, on top of a 9 percent increase in 2012. Experts believe that although US prices are rising, the market will keep attracting foreign purchasers, including from China.
Experts say the US real estate market is beginning to rebound, helped by attractive prices that will continue to attract buyers, including Chinese clients.
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