FOREIGN real estate companies, especially those from neighboring Asian countries, have China's affluent middle class firmly in their sights.
Malaysian luxury developer E&O Property Development Berhad says it plans to launch marketing road shows later this year to introduce its largest seaside project to buyers in Shanghai and possibly Guangzhou, in southern Guangdong Province.
"China is definitely one of our most important markets," said K.C. Chong, marketing and sales director with E&O Property Development. "In fact, we've already received very positive market responses to our recently completed roadshow in Hong Kong."
The Kuala Lumpur-based real estate company is building Seri Tanjung Pinang, a 980-acre (3.64-square-kilometer) integrated seafront project in Penang, northern Malaysia.
The two-phase masterplanned real estate project, with gross development value hitting 2.6 billion ringgit (US$750 million) for Phase One, will feature luxury villas, semi-detached and courtyard terrace homes, condominiums and serviced apartments, as well as a five-star hotel and boutique resort, marina beach clubs, championship golf course and exclusive seafront residences with private berths.
All were designed to meet the expectations of international investors in luxury property.
"Real estate prices in Malaysia are extremely competitive among Asian countries," Chong said. "Moreover, the recent regulatory relaxation on overseas investment on properties, together with the 'Malaysia My Second Home' program, should encourage more foreign investment in the country's real estate sector."
So far, about 20 percent of properties launched in Phase One have been purchased by foreigners, which include a few from Hong Kong, the company said.
E&O is certainly not alone.
Just a few weeks ago, another developer from Malaysia, the Kuala Lumpur Metro Group, came to Shanghai for the first time to introduce the Legend International Water Homes project in Port Dickson to local Chinese buyers.
Moreover, developers from oil-rich Middle Eastern countries think the same way.
Tanmiyat Investment Group, one of the Middle East's leading real estate and investment companies, just finished its first marketing trip to China as part of its strategy to expand into one of the world's most rapidly expanding markets.
"Without any doubt, China is the most active market in the world," said Sulyman A. Al Majed, president of Tanmiyat. "We came here to show who we are."
The Saudi Arabian company came to promote its US$3.8 billion Living Legends project in Dubai, the United Arab Emirates. It hopes to enhance its own scope of activity, demonstrate the strengths and potential of the Middle Eastern real estate sector to the rest of the world, as well as broaden horizons for those who wish to invest in the region.
According to Hu Weidong, a sales agent of the Dubai project, several visitors from Hong Kong, Taiwan and the mainland have expressed their interest in the project.