MIAMI—Developers from Miami, Boston and New York, among others, are eyeing investment opportunities in China. But there are clear barriers to entry.

GlobeSt.com caught up with Josh Cunningham, vice president and head of sales for the Americas for Investorist, to get his thoughts on some of the key considerations in part one of this exclusive interview. Stay tuned for part two, in which he will go more in-depth on the agent factor in China.

GlobeSt.com: What are the key things US developers need to know about selling in China?

Cunningham: It is crucial to understand that China is a “relationship country.” For property, that means that people buy from people they know and trust. For important purchases like real estate, the Chinese don't buy from websites, phone calls or e-mails . It's all about establishing face-to-face rapport and building relationships of trust before deals are secured.

GlobeSt.com: How are Chinese buying US property now?

Cunningham: Many of the developers and new home builders that we speak with in the US have Chinese buyers on their books already. Ask them how they acquired these buyers and the answer is always the same: “An agent brought the buyer to me.” This shows that marketing to the end property buyer in China is far from easy, and the proven way to achieve results is via trusted Chinese agents.

GlobeSt.com: How do you increase the number of Chinese buyers you attract?

Cunningham: Our experience tells us that around 90% of all international property in Asia is transacted via agents. To increase the number of Chinese or other Asian-based buyers for your projects, you must:

Find agents in China specifically interested in selling US property;
Segment the market to find the right type of agent for your specific project;
Introduce your project to this agent or agents, and reach agreement to sell;
Commit to spending the time and resources required to fully educate your agency team in China, and;
Build strong relationships through mutual respect, cultural understanding and in-person meetings to achieve the best results.

GlobeSt.com: Why do so many Chinese property buyers use agents?

Cunningham: China is an enormous country of around 1.4 billion people. Buying international property is a complex business, and the rules for transacting in each state of America are different.

Chinese buyers largely rely on trusted agents and advisers to find, analyze the benefits and recommend the right property for them. Added to this is the challenge of navigating government restrictions on moving Chinese currency offshore and securing loan funds for purchases if required.

Instant Insights /

What it Takes for US Developers to Succeed in China

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