Chinese mainlanders are emerging as important clients for overseas property sellers as their growing enthusiasm for houses and their rising purchasing power offer an antidote to depressed real estate markets overseas.

The Chinese have reasons beyond simple investment. For many, buying property overseas opens opportunities for immigration, holidays, children's education and dreams of a better life.

"For many overseas real estate developers, China has definitely become a market of great significance as demand climbs rapidly with ever-increasing wealth among Chinese people," said Gu Shiqi, general manager of Shanghai YUBO International Exhibition Co, organizer of the annual China International Luxury Property Show.

"And for rich Chinese, properties always remain one of their favorite ways to spend money," Gu added.

Now in its fifth year, the luxury property show, held in Shanghai in September, featured residential projects from 18 overseas cities, including London, Melbourne, Tokyo, Honolulu and Singapore. The event attracted thousands of visitors during its three-day run, according to the organizer.

Four residential projects from Japan, which in July eased its visa application process for Chinese mainlanders, were included in the exhibition for the first time this year.

According to a Hurun wealth report released in April, there are currently 875,000 Chinese mainlanders with personal wealth of more than 10 million yuan (US$1.5 million), a 6.1 percent increase from a year earlier. The number with fortunes of more than 100 million yuan rose 7.8 percent to 55,000.

"It has become a popular option among affluent Chinese to buy properties abroad when they seek safer and better-yielding assets," said Stephanie Zhang, project director with Shanghai Kuntai Exhibition Ltd, which has organized a couple of luxury property shows in Shanghai since 2009.

"In addition, more Chinese people seem to think about owning an overseas property, such as a place in Japan, purely for holiday use," she said. "It's one of the favorite exotic leisure destinations for wealthy Chinese."

There are no figures available on just how many Chinese have bought property overseas, or are even looking.

Ticket to better life

Many Chinese living in crowded cities with constant pollution and increasing traffic gridlock are eyeing property abroad as a ticket to a better lifestyle.

"With ever-rising incomes, more Chinese people are starting to focus on their quality of life," said Bunny Wang, director of International Properties at Colliers International, a major real estate services provider.

"It's natural for them to look at purchasing houses abroad, often in less congested areas, to cater for their holiday and even retirement plans," she added.

Property can be a good investment too. "The return ratio on property is also quite good overseas, at about 5 percent to 6 percent a year," Wang noted.

Contrast that with Shanghai, for instance, where industry analysts put the annual yield from rental income at less than 3 percent.

Colliers was perhaps one of the earliest international property consultants to seize on the emerging demand for foreign property as part of its China growth strategy.

The company, which established its International Property division in China in September, is offering marketing and sales services to overseas developers. The company said last week that it plans to expand its international property business to about 30 cities in China from the current five within the next two years.

"We've noticed huge opportunities in the China market as local investors become better informed and educated about overseas property investment," said Alan Liu, managing director for Colliers' North Asia operations.

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