Conducting Real Estate Business with China

LIAO Junping

Vice President, CIREA

Nov. 10 2012 Orlando

China, compared with the USA

Facts of P.R.China----Land area: ca. 9,600,000 km2

Population: ca. 1,400,000,000

Guangzhou

Why Do the Chinese Buy Properties in the US

Do You Know the Yield Rate of Residential

Property in Guangzhou?

• A. 3%• B. 9%• C. 15%

A Real Story of a Properties 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 Myself

• Condo in campus of the university• 101m2, Price=3,000,000+ RMB,

Rent=5000RMB/month

• r<2%

What the Chinese Buyers Concern about Buying

Properties 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 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?

Commerci al, 2. 17%

Si ngl eHouse,32. 61%

Condo,41. 30%

Farm,15. 22%

Land,8. 70%

Who Are We?

• China Institute of Real Estate Appraisers and Agents

• = AI + NAR

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 Brokerage

• More than 1 million practitioners in real estate brokerage industry

• 44013 qualified agents• 50000+ real estate agencies

• Rent commission: rent of half a

month or one month

• Sale commission: 0.5-2.5%

• Commission for exclusive sale: 3%

Brokerage Commission

We are willing to collaborate with you

Contact me, contact CIREAContact Chinese RE Agents

liaojp@mail.sysu.edu.cnwww.agents.org.cnwww.gzrea.cn

President, Guangzhou Association of Real Estate Agents

Professor & DirectorInstitute of Real Estate Studies

Lingnan College, Sun Yat-Sen University

Thank you!