Selling to the Chinese market can be tricky. Photo / Getty Images
Selling to the Chinese market can be tricky. Photo / Getty Images
A real estate agent described as an industry pioneer in connecting with the Asian community has identified eight major differences between the buying preferences of Chinese New Zealanders and others.
James Chan, a real estate agent with Bayleys, was identified in the Superdiversity Stocktake report, by Chen Palmer managing directorMai Chen, on ethnic diversity, as having invested significant resources to develop a dedicated international team.
He outlined how Chinese New Zealanders preferred to buy properties with certain street numbers - 2, 3, 8 and 9 are good but 13 and 14 are to be avoided. He also outlined broad preferences, saying his clients preferred newer buildings which often cost less to maintain.
Buildings, houses in particular, on elevated sites were more popular than those in gullies or hollows, he said.
Many of his clients buy not with strict investment principles but for family. When it comes to buying commercial properties - which he specialises in - Chinese New Zealanders are seeking a steady income stream for the next generation, he said.
"They're buying for the long-term future. A lot of them are looking for 10 or 15 years or more. They're not looking at the return. They might be prepared to take a lower return, in fact," Chan said.
"A lot of Chinese people like saving and they perceive property is good for that. They might not be able to use the money for themselves but they're investing for the younger generation, so they take a longer term view than European New Zealanders.
James Chan has been with Bayleys for 25 years and has sold more than $1 billion worth of property. Photo / Kevin Durrant
"People come to New Zealand - they had choices and were able to go to other countries - but New Zealand is a lot more peaceful and laid back [and] transparent."
Nick Siu of Agency 88, who put together the case study for the Superdiversity Stocktake, praised Chan's methods.
"For example, he currently had on the market a project for over 2000 apartments to be built in New Lynn by a Guangzhou-based development company.
"The company was willing to take a risk on such a substantial project because not only did the project fit within its expertise and design strengths but also because much of its team had migrated to live in Auckland so had seen first-hand the opportunity to capitalise on the lifestyle the city offered," the report said.
Chan has been with Bayleys for 25 years and has sold more than $1 billion in property.
Chan is fluent in English and Mandarin and has many Asian contacts within New Zealand and in Southeast Asian countries such as Hong Kong, Taiwan, Singapore and China.
Property buying differences between Chinese Kiwis and others
• Street numbers matter: 2, 3, 8 and 9 are good but 13 and 14 are to be avoided. • Preference for buildings on elevated sites rather than in gullies. • A pillar or fixed obstacle inside the front door is not seen as being a good thing. • Demand more information on commercial deals. • Prefer much newer buildings. • Often avoid brick buildings due to earthquake risk • Might take a lower return with the offset of capital appreciation over longer term. • Prefer national or international tenant for long-term security. Source: James Chan, Bayleys
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