Chinese New Year spike
Year of the Rat celebrations tipped to bring more interest in housing market. Susan Edmunds reports.
Real estate companies are trying to encourage Chinese buyers back into the market as the Year of the Rat begins, using targeted social media campaigns on Chinese language app WeChat, candle-lighting events and New Year trade shows.
Restrictions on foreign buyers introduced in late 2018 mean people who are not citizens cannot buy most types of homes, except for new apartments in developments and multi-storey blocks.
But agents are anticipating an upswing in interest from Chinese buyers as the new lunar year begins, with many buying property through family members living in New Zealand.
Barfoot & Thompson director Peter Thompson said his firm had seen Chinese buyer numbers fall since the restrictions, although they still made up 25 per cent of its sales. ‘‘Many have family here in New Zealand and they often buy property through them. The hardest part is not in fact the legislation, but getting their money out of China.’’
Barfoot & Thompson, Auckland’s biggest real estate agency by volume, was sponsoring Chinese New Year trade shows and organising ‘‘lighting of the candles’’ events in parks, Thompson said.
‘‘We also advertise large in the local Chinese papers over this period and utilise our WeChat as much as we are permitted to.
‘‘Tourism always lifts during Chinese New Year with the bulk of those tourists being Chinese. Whilst here they have a passion for property and often investigate about buying and our salespeople often will sign them up, not necessarily at that time but within a period of say four to six months after their visit.
‘‘With family and friends living here, many already have suburbs where they want to live... so that part of the transaction is taken out of the equation as they like to live near family.’’
Georg Chmiel, executive chairman of Juwai, a property website that markets property to Chinese buyers, said inquiries from China had dropped by about half in 2019 compared to the year before.
‘‘The Chinese who buy now most commonly already live in New Zealand and count as locals
Barfoot & Thompson director for the purposes of the foreign buyer restrictions. They aren’t affected by the restrictions,’’ Chmiel said.
But he said activity could pick up over Chinese New Year, which is celebrated on January 25 and marks the start of the Year of the Rat.
‘‘Chinese New Year always gives a boost to Chinese interest in real estate. They have a whole week off, so it is the perfect time to visit friends and family who live here already as students, immigrants, and expats. While in town, they often look for real estate because it’s a convenient time. What’s really interesting is that after Chinese New Year for the past few years we have seen a surge in Chinese buyer inquiries.
‘‘Many Chinese who visit New Zealand like it, get home, and want to find out what they can afford. Others have found a property they like but want to better understand the market before buying.’’
He said Chinese buyers make an average of 60 per cent more inquiries in the five weeks after Chinese New Years than they do on an average week during the whole year.
Derryn Mayne, owner of Century 21, said acknowledging Chinese New Year was part of the agency’s digital marketing strategy.
Bindi Norwell, chief executive of the Real Estate Institute, said she was not aware of any traditional surge in Chinese New Year buying.
‘‘The one exception, however, might be in the Year of the Dragon, which is considered to be a particularly lucky or auspicious year and many couples look to plan to have their families in the Year of the Dragon, so might be looking to upgrade their property to make way for their expanding family,’’ she said.
‘‘More generally though, we’re hearing from a number of agents that they have already had a good start to 2020 with increased confidence from buyers across most parts of the country.’’
‘‘The hardest part is not in fact the legislation, but getting their money out of China.’’ Peter Thompson