At the Beijing International Premier Real Estate Trade Show, there has been an increased number of property being promoted by the countries along the 'Belt and Road' initiative. CCTV reporter talked to industry insiders, to find out what's in store for potential Chinese home buyers.
Real estate companies are showcasing projects from about 30 countries. 15% of them are from the markets related to China’s “Belt and Road” initiative, such as Sri Lanka and Germany. They include first-time exhibitor Turkey.
"We have seen an increasing number of tourists in Turkey, so their demand for local properties will rise, too. many Turkish companies are trying to explore the big Chinese market, so we want to be the first to tap the opportunity," said Kamuran Ekrem, sales manager of CEBECI Group A.S.
The Chinese government mooted the “Belt and Road” initiative in 2013. It aims to strengthen regional connectivity, by cooperating with about 50 countries along the routes, on finance, infrastructure and cultural exchange.
Some countries are touting lower property prices and a good living environment as their major selling points. Ekrem says the cheapest project from his company is about 6,500 yuan per square meter, but in some good areas of China's capital Beijing, the prices could go up to 10 times. And not everyone is buying this idea. To many Chinese home buyers, the unknowns on the strange land are holding them back.
"I’m concerned about the risks of investing properties in those countries, as I’m unfamiliar with their policies and taxes. I would prefer those with a more mature investment system and stable economy, such as the US and Canada," said teacher Ding Han.
An insider of the international housing market also warns of the risks of jumping onto the bandwagon too quickly.
"It's a new emerging market to Chinese buyers. They have different languages, legal systems, and various ways of doing business, so the investors need to learn about their related laws and regulations to control risks," said David Wei, Deputy General Manager of Beijing International Property Expo.
Despite the potential risks, some China's companies have gained from promoting those new markets to local buyers.
"The Belt and Road program is broadening Chinese people’s horizon, increasing their asset allocation in those countries. From our sales, the investment in those properties is rising by 10% every month," said Zhu Wangping, President of Can-Reach (Pacific) Consultants.
According to Zhu, as the “Belt and Road” initiative is taking shape, engagement between these countries and Chinese buyers will deepen. It will further fuel sales.
While more and more countries along the “Belt and Road” are coming to compete in the market, properties from the US, Canada and Australia are still the most popular.
