Chinese Millennials are Buying Property Online
The Millennials of China are offering great hope to the online property market as they prefer to shop for real-estate online than offline. None is happier than Uoolu.com which is seeing a rise of 60% in its transactions and made 5 billion Yuan in 2018 and is hoping to double it this year.
Most of the buyers in popular online real-estate platforms like Uoolu are in the range of early ’20s to ’40s which is the tech-savvy generation. For them, the key is convenience. Investing and buying online is the easiest and the most effective way to select and buy property. If everything goes fine, the transactions can be done in a matter of a few hours, and the down payment is also less compared to an offline property. The initial amount to be paid is $1,500. These online platforms also help in getting mortgages, finding renters, etc. which makes it all the more easy for buyers. Another major factor that is making Chinese look outwards for investments is the home prices in their land is high, and there are many restrictions by the Beijing government which makes purchasing difficult.
SouthEast Asian properties are a hit:
The tech-savvy youngsters are looking to buy property in SouthEast Asia as the prices in the market are cheaper and more conducive for buying compared to cities like Beijing or Shanghai. Singapore will be happy with this trend as the real-estate market is currently in a standstill. The market is yet to come out of a four-year slowdown in that domain, and the policies that the government has adopted is being blamed for its current situation. Moreover, since the property prices in Southeast Asia is among the lowest, the millennials can afford to make a mortgage and also secure the necessary down payments despite having to pay foreign exchange. Shanghai-based research head Liu Yuan said, “The demand is very strong among the middle class holding extra cash. Purchases have become simpler with online platforms.”
Apart from Singapore, the youngsters in China are considering Indonesia, the Philippines, and Thailand with the latter being the most popular destination. Another reason for their popularity is the lack of regulations on foreign buyers. Additionally, they have no policies against the Chinese owning their property.
While online transactions have increased, many are uncomfortable with the online approach of buying without even visiting a property. So the traditional agencies still play a dominant role in the purchase of houses especially the expensive ones.