Statistics show that Chinese citizens are actively investing in real estate abroad. Given that in some countries the Chinese have a significant market share, they are able to change the demand for real estate and the dynamics of supply. This is especially true for smaller markets popular with foreigners.

Looking at data on the top 10 countries where the Chinese purchased real estate from 2020 to the first half of 2023, we see some interesting trends.

Table with countries where Chinese were most likely to buy real estate from 2020 to the first half of 2023

Thailand topped the list of popular countries for investment in 2020-2021, but it dropped to fifth place in 2023. The decline in Chinese demand for real estate in Thailand has impacted local agents and developers, who are facing changes in market dynamics. It also created a more favorable environment for investors from other countries as the main competitor became less active.

In the UAE, we are seeing the opposite trend. While just a few years ago the Emirates did not make it into the top 10 countries popular with Chinese investors, by 2023 it has taken the seventh position in the ranking.

New buildings are much more expensive than secondary apartments. The decade results in the real estate market in Dubai. Analytics from REALTING

The most popular destination for the Chinese in 2023 is Australia. As we wrote earlier, this country is the main destination for Chinese buyers of offshore real estate. Three and four-bedroom homes are also in demand. 

Some important news about the real estate market in China itself:

  • China's new home sales fell 33% in July from a year earlier, according to China Real Estate Information Corp. The decline was the third consecutive month of decline and the biggest drop since 2015.
  • The government has taken some steps to support the market, such as lowering interest rates and down payment requirements. However, these measures have had little effect so far.
  • Some of China's largest real estate developers are facing financial difficulties. Country Garden, the country's largest real estate developer, is expected to report losses of up to $7.6 billion for the first half of 2023.

Based on this, the outlook for China's real estate market is currently uncertain.