• Home
  • About
    • Buyers Agent
    • Our Company
    • How We Are Different
    • Our Team
  • Who We Help
  • Experience
    • Past Purchases
    • Testimonials
  • Services
  • Resources
    • FAQ
    • Getting a Loan
    • Assistance for First Home Buyers
    • Selling Advice
    • Australian Foreign Investment Policy
    • Calculators
    • Links
  • News
    • Media Mentions
    • Facebook
  • Careers
  • Contact
OH Property Group
Call us  +61 2 8901 4818
  • Facebook
  • Twitter
  • Instagram

Home  /  Blog  /  Understanding Chinese property buyers and sellers

Understanding Chinese property buyers and sellers

January 24, 2012 / General Observations, Market Trend, Useful Tips, Advice to Sellers

It’s not news to anyone that there has been a constant increase in the number of Chinese property buyers and sellers in Australia, particularly in metro city areas. In light of the Chinese lunar New Year, I find it timely to take a look at some of the taste and behaviour idiosyncrasies of this significant group of property actors.

This article will refer mostly to Chinese residential buyers and sellers. While there are some similar behaviour patterns with Chinese commercial buyers and sellers, most commercial transactions are different as many involve syndicates rather than single players.

I also would like to highlight that a level of generalisation is required to write an article such as this. The observations made in this article are from years of experience in dealing with Chinese clients and from the knowledge of my colleagues who are of Chinese origins and understand the finer details of the culture.

The first mistake that many people make when discussing Chinese buyers is to group them all as one. The reality is that Chinese buyers behave very differently depending on whether they are overseas Chinese buyers, new Chinese immigrants, long term Australian residents of Chinese heritage, or even Australian-born-Chinese buyers of 2nd generation. The main difference is due to their level of English as well as the level of familiarity, trust and comfort they have in the Australian real estate processes.

The second mistake often made in understanding Chinese buyers is to assume all buyers of ethnic Chinese origins behave in similar fashion. A Taiwanese buyer can behave very differently from a Hong Kong buyer or a mainland Chinese buyer. Chinese Malaysians, Indonesians or Singaporeans likewise all behave in their own unique manner during property negotiations.

While increasing sensitivity to Chinese buyers and sellers is becoming the norm in real estate transactions, many agents still only have a superficial understanding of Chinese clients. Many have a basic understanding of Feng Shui, or the preference for certain lucky numbers such as 8, and tend to focus on these in the marketing of properties. While this is certainly important for some Chinese buyers, it is not usually equally so for second generation Chinese Australians. Many properties with the supposedly unfortunate number 4 (meaning ‘death’) have sold for high prices to Chinese buyers. Therefore, while important to keep these cultural preferences in mind, it is not an all-consuming factor. Chinese buyers are rational and they are not buying every single property that has an ‘8’ in the number.

With this said, my colleagues and I have noticed a definite pattern of preferences with many Chinese buyers over the years:

  • They like full brick homes (as opposed to brick veneer, weatherboard or fibro – unless they plan to knock it down).
  • They like rectangular shaped land.
  • They generally would prefer not to have a swimming pool. Swimming is not a big part of the Chinese upbringing and many Chinese-born children don’t know how to swim. Therefore a swimming pool is seen to be more a danger and a chore than a source of pleasure.
  • They like level and clear land with not too many trees (especially protected species such as gum trees which are not always possible to remove).
  • They like low maintenance properties (e.g. paved backyard as opposed to cottage style garden).
  • They prefer high side of the street and generally dislike properties which have an entrance below street level.
  • They have a preference for newer built properties and less of an appreciation for older style features such as an ornate ceiling or picture rails, etc. Therefore, a heritage listed property usually does not appeal to Chinese buyers.
  • Position is important and many Chinese buyers will not want to purchase properties which are at a T-junction for example.
  • Aspect is also important and Chinese buyers typically prefer morning sun than afternoon sun.
  • Some Feng Shui related features are important. However, so long as a ‘flaw’ can be fixed, it shouldn’t be a huge problem. For example, some superstitious Chinese buyers believe it is bad Feng Shui to be able to see through from the front door straight out the back door. To them, this implies that money which comes into the house will immediately find its way out the door just as quickly. However, if some kind of partition or barrier can be built to disrupt this flow, then this problem is solved. This is quite unlike many non-Asian families who actually think it is preferable to have that cross ventilation and see-through aspect from the front door.
  • For any Chinese buyers with school-aged children, the proximity to their preferred school is almost always the main consideration. This is not surprising given the heavy emphasis on education placed by parents upon their children.

When it comes time to buy or sell, many Chinese buyers and sellers who may not be fluent in English would show a strong preference to deal with Chinese-speaking agents. This is why many Sydney suburbs (such as Chatswood, Eastwood, Epping, Strathfield, Campsie, and Asfield etc.), which have strong Chinese demographic presence also tend to have the most number of Chinese speaking agents. Quite often the Chinese agents are not necessarily the best when it comes to sophisticated or glossy marketing. However their ability to communicate in the same language and build a relationship with the client gets them the business.

At the end of the day, while recognising that there are distinct behavioural differences between Chinese and non-Chinese property buyers and sellers, it is also important to note that there are also similarities. As with any other buyers, Chinese buyers also like to get a ‘bargain’ when buying. They tend to be savvy property investors who are risk averse and rely on the advice of their family and friends. Earning their trust is important when dealing with them, regardless of whether it is on the buy or sell side. And just like any other buyers, once they are emotional about a particular property which meets their criteria, they are prepared to pay a premium if they can afford it.

About Oliver Stier

Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.

  • Mail
  • |
  • Twitter
  • |
  • Facebook

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories

  • General Observations
  • Market Trend
  • Postings Elsewhere
  • Useful Tips
  • Advice to Sellers
  • Auction Action
  • Featured

Put Yourself Ahead

We give you the edge to buy the right property quickly and intelligently. What are you looking for?

Complete our Property Brief

Past Purchases

  • View Property
  • View Property
  • View Property
  • View Property
  • View Property
  • View Property

Newsletter

Subscribe to our Newsletter using the form below.

Sending

In the Media

Making money from flipping property (Part 2)

Published in Geared for Growth on October 10, 2022

Read More

Latest from Facebook

  • OH Property Group - Buyers' Agents
    OH Property Group - Buyers' Agents
    Photos from OH Property Group - Buyers' Agents's post HAPPY 2023!
    It might only be the 12th of January and people are still on holiday-mode. But our team has done 3 settlements already in 2023! Including our clients who are moving into this immaculate h ...
  • Read More

    What Our Clients Say

    • Henny and Oliver moved quickly to help us to secure the property at a great price. This was before the house has even been listed for sale. I have no doubt that it would have sold for a much higher price had it been put on the market.

      E. Yeo

      Read More
    • They proved themselves spot on with their estimates of the expected sales prices of properties we viewed.

      C. Chu & A. Siu

      Read More
    • Oliver is a person with high integrity who always has the client’s best interest as a priority.

      C. de Salazar & J. Martin

      Read More
    • Your knowledge and expertise in what you do is incredible and the enthusiasm in which you put into your work is so evident in everything you do.

      T. & S. Tifa

      Read More
    • We felt like we were on the winning team from the time we called them. I just wish we had done it earlier!

      N. & J. Murray

      Read More
    • It was like watching a chess game unfold and Henny was able to think several steps ahead and take control of the negotiation process. It was nice to be in the driver’s seat for a change.

      R. & S. Chappell

      Read More
    • Having a buyers’ agent represent us at auctions helped relieve a lot of our stress. It was great to finally have an upper hand at an auction situation for we had the best people working for us.

      M. & M. Ng

      Read More
    • The property we ended up buying had 17 contracts out on the first open house inspection. Henny knew how to get us to the finish line by positioning us correctly and having an open communication with the real estate agent.

      Y. Cho & D. Wong

      Read More
    • We have bought three other properties on our own before. However, compared to our past purchase experiences, this time it was so much easier.

      A. & B. Sengphachan

      Read More
    • We were advised to let the Auction for our new house pass-in and in the end, we acquired the property for $165,000 below the Vendor’s Bid at auction. This savings means the Buyers’ Agent fees essentially paid for themselves multiple times over.

      S. Lam

      Read More
    • In an industry rife with ethically challenged real estate agents it has been a real relief to have a buyer’s agent who possesses such a strong sense of ethics.

      D. Stewart

      Read More
    • OH Property Group was proactive, efficient, and always available during each step of the buying process. During our search we never felt rushed in making any irrational decisions and were able to digest all information in our own time.

      S. & R. Reyes

      Read More
    • Oliver was thorough, considered, and he took time to understand our situation and tailored his approach accordingly.

      C. Tollemache & P. Anderson

      Read More
    • OH Property Group’s professionalism and tireless work ethic achieved the impossible in an impossible time frame. Without their help, I wouldn’t have even looked at the property I ended up buying.

      P. Christensen

      Read More
    • We were very impressed by their dedication, excellent service and attention to detail. Their expertise and advice are invaluable and gave us great comfort to know that one of our biggest financial purchases was a sensible one.

      J. & A. Surjadi

      Read More
    • Watching Oliver strategize throughout the process was like watching a beautiful piece of art – he made so many moves which ultimately resulted in significant savings for us, not to mention a very smooth and relaxed process.

      J. & C. Budge

      Read More
    • To think that we could have bought an ill fitting house for too much money and with possible regret, it’s really made us feel relieved that we have used your services to find the perfect house for us and at good value too.

      O. & C. Valentine

      Read More
    • Without their help it is unlikely that we would have even inspected the apartment we bought, and not only does it meet all our needs but the purchase price was at the lower end of our budget.

      D. & W. Watson

      Read More
    • We are truly happy with our new home. We were able to get a better price than if we had acted alone. OH Property Group’s professionalism and experienced negotiation tactics really landed us with the best outcome.

      J. & V. Wu

      Read More
    • More than making sure we were paying a fair price, Henny and Oliver asked us the right questions to understand what we valued in a property as a couple. They also took into consideration the stage of life we are in and our plans for the future.

      H. Ma & S. Wu

      Read More
    • We found the experience of using a buyers’ agent to be very liberating. It took a load off our minds. It was definitely money well spent and we would definitely recommend your services to others!

      P. & A. Wong

      Read More
    • It was a big weight off our shoulders to know that an experienced agent was bidding on our behalf at the auction which minimised the stress of the day. We feel very satisfied that we have made a good investment in a great area.

      S. & T. Seton

      Read More
    • Our Buyers’ Agent took away all the guesswork, did all the investigation and due diligence and presented us with everything we needed to know in order to make a well informed decision.

      E. Huang

      Read More
    • Oliver represented us at the Auction, let it pass in and then negotiated a price much lower than what we had been willing to pay.

      J. Chang & L. Truong

      Read More
    • I feel that Oliver and Henny were completely honest and open, working with only my best interests at hand.

      J. Mak

      Read More
    • The negotiation process was handled in a highly skilled, efficient and impressive manner and the property secured at the right price within a matter of days despite the competition.

      T. & D. Colwell

      Read More
    • From the moment we started working with Henny, her dedication to her clients became clear. We always found her to be incredibly insightful, thorough and trustworthy. In all things, she truly went above and beyond for us.

      J. & A. Pearce

      Read More
    • You reacted quickly at any time of the day to my requests for further information and appraisal and I believe that you understood my needs and could be trusted to provide reliable information.

      J. Gulley

      Read More
    • Our Buyers Agents were able to provide important advice about the manner in which we should communicate with the Vendor in order to make an offer on the property clearly and confidently – despite our offering well below the asking price.

      A. McConnachie & S. Wrangham

      Read More
    • Once the search started, we were really impressed by the frequency and quality of the communication, as well as the responsiveness to any questions we had.

      J. Tyler & L. Morphett

      Read More
    • About
      • Buyers Agent
      • Our Company
      • How We Are Different
      • Our Team
      • Best Practice Guidelines
    • Who We Help
      • Experience
      • Past Purchases
      • Testimonials
    • Services
      • Property Management
    • Resources
      • FAQ
      • Getting a Loan
      • Assistance for First Home Buyers
      • Selling Advice
      • Australian Foreign Investment Policy
      • Calculators
      • Links
      • Service Providers (Password Required)
    • News
      • Media Mentions
      • Facebook
    • Careers
    • Contact
      • Property Brief
      • Login

    PO Box 274
    Chatswood, NSW 2057

    • Follow @ohproperty