conducting real estate business with china liao junping vice president, cirea nov. 10 2012 orlando
TRANSCRIPT
Conducting Real Estate Conducting Real Estate Business with ChinaBusiness with China
LIAO Junping
Vice President, CIREA
Nov. 10 2012 Orlando
China, compared with the USAChina, compared with the USA
Facts of P.R.China----Facts of P.R.China----Land area: ca. 9,600,000 kmLand area: ca. 9,600,000 km22
Population: ca. 1,400,000,000Population: ca. 1,400,000,000
Guangzhou
Why Do the Chinese Buy Why Do the Chinese Buy Properties in the USProperties in the US
Do You Know the Yield Do You Know the Yield Rate of Residential Rate of Residential
Property in Guangzhou?Property in Guangzhou?
• A. 3%
• B. 9%
• C. 15%
A Real Story of a A Real Story of a Properties BuyerProperties Buyer
• 2005, Guangzhou, 6000RMB/m2
*80m2=480kRMB• 2010, Guangzhou, 15000RMB/m2
*80m2=1.2mRMB, Rent=2800RMB/month• Guangzhou, r=2.8%• 1.2mRMB/6.4=187.5kUSD• Atlanta, 2 houses,
90k+140k ， Rent=1000USD+1500USD
• r=13.04%
Real Story of MyselfReal Story of Myself
• Condo in campus of the university
• 101m2, Price=3,000,000+ RMB, Rent=5000RMB/month
• r<2%
What the Chinese Buyers What the Chinese Buyers Concern about Buying Concern about Buying
Properties in the USProperties in the US• Free access of person and capital
into the US • Closing procedure and fees
differences between China and US• Managing after buying• Assistance by the bilingual realtors• ……
Where do the China buyers Where do the China buyers want to go?want to go?
Uni ted States,26%
Canada, 19%Austral i a, 17%
New Zeal and,15%
Europe, 13%
Si ngapore, 7%
Others, 4%
What kind of properties?What kind of properties?
Commerci al, 2. 17%
Si ngl eHouse,32. 61%
Condo,41. 30%
Farm,15. 22%
Land,8. 70%
Who Are We?Who Are We?
• China Institute of Real Estate Appraisers and Agents
• = AI + NAR
What Do We Do?What Do We Do?• Delegated by the Ministry of
Housing and Urban-Rural Construction ----
• To deliver the designation of Certified Real Estate Appraiser and Certified Real Estate Agent
• To do registration of Appraisers and Agents, and to record their ethic credits
China Real Estate China Real Estate BrokerageBrokerage
• More than 1 million practitioners in real estate brokerage industry
• 44013 qualified agents
• 50000+ real estate agencies
• Rent commission: rent of half a Rent commission: rent of half a
month or one monthmonth or one month
• Sale commission: 0.5-2.5%Sale commission: 0.5-2.5%
• Commission for exclusive sale: 3%Commission for exclusive sale: 3%
Brokerage Brokerage CommissionCommission
We are willing to We are willing to collaborate with youcollaborate with you
Contact me, contact CIREAContact me, contact CIREAContact Chinese RE AgentsContact Chinese RE Agents
President, Guangzhou Association of Real Estate Agents
Professor & DirectorInstitute of Real Estate Studies
Lingnan College, Sun Yat-Sen University
Thank you!Thank you!