Where Rich Chinese Are Buying Real Estate

25-Jun-2011

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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.







From Forbes Blog – Ken Rapoza,

Vancouver, London and the big cities down under are second homes of choice for China’s super rich, according to real estate services firm Colliers International.

One of the reasons the China real estate market is so hot is because wealthy Chinese are buying up property to hold onto real assets, rather than put money in low yielding bank bonds and volatile equities. The super rich are buying real estate outside of China in an effort to avoid taxes.

In the past six months, Chinese spent 1.3 billion yuan ($200 million) through Colliers’ international property department, with Canada, the UK and Australia topping list.  “We are expecting a clear increase in the extent of mainland buyers’ purchases of overseas properties this year because of the government’s rigorous restraint on the number of homes a family can buy in key cities,” Alan Liu, managing director of Colliers International, said in China Daily Tuesday.

Chinese demand has pushed the average price of a Vancouver home up 12% in 2010 and is expected to rise another 3% this year, according to the Canada Mortgage and Housing Corporation. Demand from mainland immigrants now accounts for 29% of all new homes in Vancouver, China Daily reports.

In London, China buyers accounted for 28% of all prime London property sales and 54% by sales value in the prime central London area, where houses go for 5 million pounds ($8 million) on average, according to a recent report by Savills research.

“If the money from China were to start flowing into London at the same rate it does from billionaires in other countries, we would expect the value of ultra-prime London properties to grow by as much as 15%,” Yolande Barnes, head of Savills residential research told China Daily. “The issue at present is that Chinese buyers aren’t taking, or can’t take, their money out of China.”

The biggest increase in global billionaires since 2007 has occurred in China and Russia. The oligarchs from the old USSR account for 15% of prime London real estate by value.  Chinese billionaires have yet to have a real impact, accounting for just 3% so far, but that is expected to change as China’s uber-rich discover new ways to invest offshore.


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