(Ecns.cn) -- If the Antarctic went on sale, it's a safe bet that Chinese investors would flock there in droves.
Prime property markets around the world are witnessing a surge of Chinese investors buying up houses. But as more and more mainlanders turn their attention to overseas real estate markets, experts have warned of possible risks, advising investors to get all the facts before buying property abroad.
Purely for investment
"I visited a friend several days ago and happened across some Chinese who were looking at luxury villas," said a lady surnamed Qiu who does business in Europe.
"I am not allowed to buy a second house in Beijing, because the government has tightened the domestic real estate market, so I think investing in overseas property may be an alternative," said a white-collar worker in Beijing.
China is now restricting home ownership to a maximum of two properties in many provinces, which, along with new tax measures in major cities, is intended to limit overenthusiastic property investment. These restrictions are partly to blame for the increased investment abroad.
Zhuang Nuo, head of media planning for real estate portal SouFun.com, led three overseas purchase groups to Australia to buy real estate between December and February, where he said everyone got what they wanted at reasonable prices. Zhuang revealed that the turnover of the three overseas purchases reached nearly 300 million yuan ($46.4 million).
According to Zhang Yongheng, a department manager at real estate advisor DTZ Limited, among foreign investors active in overseas real estate markets such as the UK, Canada and Australia, about 60% are Russian, 20% to 30% are from the Middle East and about 10% are Chinese. In downtown London and Singapore, more than 10% of new houses are bought by Chinese mainlanders.
Zhang disclosed that an increasing number of Chinese investors are buying overseas property simply for investment. The majority of them are retired civil servants hoping to obtain a fixed rate of return in their later years, he said.
Zhuang Nuo echoed this view, adding that they "keep the beloved motherland in mind and the world real estate market in view" with the aim of preserving or increasing the value of their assets.
However, Chinese also buy houses overseas for reasons beyond investment, mostly for immigration purposes, holiday destinations or to help secure their children's education in a more developed country.
