ATLANTA—What makes a reputable developer brand in China? How important is commission? These are a few of the many considerations companies foreign to China need to consider before breaking ground in this Asian nation.

GlobeSt.com caught up with Josh Cunningham, Investorist's vice president of Sales for Americas, to get his expert tips. You can still read earlier parts of this exclusive interview series: What it Takes for US Developers to Succeed in China, The Real Reason So Many Chinese Buyers Use Agents, Dos and Don'ts of Marketing to Chinese Buyers, and Why The Time Is Literally Ripe To Sell To Chinese Investors.

GlobeSt.com: What makes an attractive project for both the Chinese buyer and Chinese agent?

Cunningham: Educational opportunities and proximity. Great location. Tax incentives, such as the absence of income tax in Florida. Chinatowns. Demographics of an area. Luxury. Feng shui-friendly design. Quality amenities. Good yields. Absence of unlucky numbers in project names.

GlobeSt.com: What elements create a reputable developer brand in China?

Cunningham: A strong brand reputation is important, such as a good track record of completed projects and luxury brand partnerships providing credibility. Chinese agents will thoroughly research the pedigree of the developers and companies they wish to deal with.

GlobeSt.com: How important is commission?

Cunningham: This is a hugely important area, but it's not just about offering a high commission rate. In China, a lot of agencies have been burned by US developers and lead agents and for this reason, they are very, very diligent when deciding who they will place sales with.

A commission rate means nothing if the agent ultimately get nothing, so agents are incredibly focused on how they will get paid, when they will get paid and how trustworthy the developer and lead agent is. Don't think for a second any Chinese agent will sell for you again if their first draw down of commission comes two months late.

Instant Insights /

How Superstition Factors Into Developing Commercial Real Estate in China

Related Stories

Recommended For You