Agents earned $147.5 million commissions from Chinese buyers in past financial year: Juwai

Agents earned $147.5 million commissions from Chinese buyers in past financial year: Juwai
Agents earned $147.5 million commissions from Chinese buyers in past financial year: Juwai

Chinese international real estate website, Juwai.com, explained that Australian real estate agents earned an estimated $147.5 million in commissions on Chinese buyer transactions in the past financial year.

In fact, this figure could be even higher. Basing their statistics on the total transaction value, multiplied by the estimated average commission rate of 2.5%, it’s clear that the real commission earnings could be even higher. The total Chinese investment in Australian property jumped 149% over the recorded financial year, to $5.9 billion.

A Juwai spokesperson told Property Observer that they used a conservative commission rate to come up with this figure, and noted that as a site their model is not to take commissions themselves but to charge for listings and advertisements - similar to solely Australian online listing portals.

The agents seeing the biggest piece of the pie are those in Sydney, followed by Brisbane, Melbourne, the Gold Coast and Adelaide.

Interestingly, of Juwai’s popular countries for Chinese buyers the United States trumps Australia. Australia is then followed by the UK, Canada and Germany.

Key motivations of individual mainland Chinese investors:

  • Seeking yields and capital gains.

  • Obtaining educational opportunities for their children.

  • Internationally diversifying their investments.

  • Enjoying an attractive lifestyle and living overseas for business or emigration. Many wealthy Chinese have a primary residence in Beijing, and second homes in Australia, the US and the UK.

Source: Juwai.com

This comes as franchise groups are increasingly signing up with online portals. Most recently, Raine & Horne have announced a partnership with Juwai, with the Chinese website acting as an exclusive Chinese-language marketing partner.

Overseas, similar partnerships are also being created.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Tags: 
Foreign Buyers China

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