Millennials in China are Driving International Housing Investment
Description: Chinese millennials are one of the largest groups of home owners in the world and are a major driving force behind international real estate investment.
Keyword: Chinese real estate buyers
Millennials in China (those born between 1980 and 1998) represent one of the highest home ownership rates in the world. The home ownership rate of this demographic is nearly twice as high as the global average, according to a recent HBCS survey [1].
Many Chinese Real Estate Investors in this demographic have been acquiring homes at a rapid rate both in China and abroad, driving the international real estate purchasing trend.
70% of Chinese millennials own a home
According to respondents in the HBSC survey, approximately 70% of Chinese millennials own a home.This compares to just 35% of millennials in the United States who own homes. Mexico was the next highest country for home ownership rates among millennials, with 46% owning homes.
Chinese parents often put homes in their children’s names in order to prepare them for marriage and raising a family, which is thought to raise the overall percentage. However, a growing number of millennials in China have been seeking overseas investments to prepare for the future as well. They comprise one of the largest groups among those searching for real estate investments on web portals like Yoursz.com.
Millennials in China are hedging against a depreciating yuan
One of the major driving factors for Chinese millennials to invest abroad is the same as other generations; the yuan continues to depreciate while real estate offers a solid hedge against it. Quality of education is also a primary factor as millennials plan for current or future families.
Parents of millennials in China may also purchase properties for their children in foreign countries where they have attended college. Prices for homes in major Chinese cities have also rapidly risen to as high as 30 times the average household income [2].
Tech savvy Chinese millennials are using apps for foreign real estate investments
As it might be expected, this younger demographic is tech savvy and uses apps such as Uooluin order toopen bank accounts or secure mortgages in other countries.
Recent capital outflow restrictions have made it increasingly challenging for them to make real estate purchases abroad. However, millennials also often have established connections and bank accounts in countries where they attended college.
The more that the Chinese government has attempted to limit overseas real estate investment, the more that Chinese real estate buyers of all ages seem to want to purchase overseas properties [3].
References:
[1] — http://time.com/money/4732889/millennials-home-ownership-china-america/
[3] — https://therealdeal.com/2017/05/09/chinese-millennials-increasingly-use-apps-to-buy-homes-abroad/
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