Understanding the culture of Chinese buyers

Understanding the culture of Chinese buyers

It’s no secret that Chinese buyers sometimes behave differently to Australian buyers in the property market.

The number of Chinese people buying Australian properties has grown. At the same time, some agents, brokers, vendors and bankers are expressing frustration at what is seen as their crazy behaviour.

They see Chinese people paying what are often seen as inflated prices, as well as arguing, jumping around and bargaining hard in a bid to buy a property.

But dig a little deeper and you will start to understand that there are historic and cultural reasons behind this behaviour.

Historically, Chinese people like to own property. There is a cultural attitude towards owning your own, not borrowing or leasing it.

Before the rise of Communism, which started in 1949, many Chinese owned their own property, whether that was a factory, a farm, shop or house. Of course, once Communism was established this changed and everything was shared.

However, the dream and ideal of property ownership is deeply established in their minds. So when Chinese people are buying property it is not because they are following a trend or because the market is ripe; it is a tradition.

Of course it’s true that we Chinese people like to bargain, regardless of we are rich or poor. This is how most people buy things in China – even if we can afford something we still bargain for it.

There are two reasons for this. If you buy something and didn’t bargain for it you would be seen as foolish. But also, if you get a good bargain, you “win face” in Chinese culture – and face is more important than saving money.

When it comes to the Australian property market, of course vendors can factor in the Chinese buyers’ love of bargaining by inflating the sale price.

Here’s a word of advice: this can backfire. When Chinese buyers find out this was the case, and that they’re being played, that will end of the relationship. They will never go back to you.

In Chinese culture, value & relationships are placed ahead of everything else

But if they find that you’re reasonable, honest, polite and friendly then not only will they go back to you for more business but they will also recommend you to their friends and family as well.

Indeed, relationships are sometimes worth more than money and if the relationship is good, Chinese buyers may even be happy to pay a little bit more.

I would suggest trying not to be too harsh on Chinese buyers, especially in the start of your dealings with them. If you want a long-term relationship, you must understand their perspective.

There is a saying among Chinese that means less short term profit but more long-term business. In other words, do not kill the goose and take its egg.