875,000 Chinese Millionaires

By
Services for Real Estate Pros with caimeiju.com

Chinese millionaire's (and billionaires) continue to grow in numbers.  Highlights from the prestigious Hurun Rich List were published this October. Hurun Report is widely recognized as the foremost authority in tracking the rapid changes amongst China’s high net worth individuals. “People often aren’t considered truly rich until anointed by Hurun Report…”Wall Street Journal US Edition Jan 2008"  

China Rich List Hurun Report     


Below are highlights from the list. To see the full report, click here.

Today there are 1363 individuals with billion Chinese Yuan (US$150 million),up from 1000 last year and only 24 ten years ago. There are 189 US Dollar billionaires that we know of, suggesting that China today has more billionaires than anywhere else in the world, 400 to 500 billionaires, surpassing even the US.

China has 875,000 individuals with personal wealth of more than 10 million Yuan (USD 1.5 million) and 55,000 individuals with more than 100 million Yuan, according to the Hurun Wealth Report 2010, released in May. The average Chinese with 10 million Yuan was born in 1970, with 100 million Yuan was born in 1966.

Most of China’s wealth creation has been driven by its massive urbanization programme, led by property and related industries. The urban population is expected to increase by 300 million people by 2025, according to the Ministry of Construction, laying the foundations for continued growth. 

The top three hobbies of China’s wealthy are travel, swimming and golf, according to the Hurun Best of the Best Survey2010.Internationally,their preferred travel destinations are the US, France and Australia, while domestically they are Sanya,Yunnan and Hong Kong. They are spending 50% more time on leisure travel, a third now take more than twenty days holiday a year.

Property is still the biggest wealth creator for the Hurun Rich List, with 20.1% listing property as one of their key industries. The percentage has been steadily decreasing, from over half in the first year of 1999 to 23.1% last year. Comparatively speaking, it has been a good year for commercial property, and a difficult year for residential property, mainly due to government attempts to keep property prices down. 

Of all the industries, China’s property tycoons are far and away richer than tycoons from any other industry. The average wealth of the Top Ten Richest Property Developers is more than double the average wealth of the next richest industries of retail and IT. - Hurun Rich List 2010

The pool of qualified domestic buyers for luxury real estate is much smaller than what it used to be. Finding interest from other countries is not only becoming more popular, but a necessity. Language and cultural barriers can be an obstacle but don't let that stop you from reaching the fasting growing luxury class in the world.   

 

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  1. Eileen Hsu 04/09/2011 10:36 PM
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Rainer
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Joe Rocky
Coldwell Banker - McCaffrey Professionals - Brookfield, CT

Yet another statistic where China is now or soon to surpass the USA.  Here is the simple truth - When the world's "tired poor and hungry, those yearning to be free" start showing up in China, THEN they will have surpassed the USA in something important.

Jan 31, 2011 07:16 PM #1
Rainer
101,578
Keith Vermilyea
Silvercreek Realty Group - Boise, ID

It's fascinating to watch the rise of China but I agree with Joe, it will take more than financial strength to surpass the USA...

Jan 31, 2011 07:37 PM #2
Rainer
41,484
Jennifer Chao
caimeiju.com - San Diego, CA

Joe, thanks for the comment but I wish to clarify the Hurun Report strictly focuses on the growth of wealthy people in China. It is not a political journal and I don't  see anything in there suggesting China will surpass the U.S. in any way other than the sheer number of wealthy individuals in its population.

Business people from all over the globe are focused on China like a laser. China's tier one cities are full of international business people looking for a piece of the action. Aussie Investment Bankers, Silicon Valley CFO's, luxury brands, they are all there and many are getting very rich.

With that said, you do bring up a very good topic for discussion. Do you think marketing real estate for foreign investment is a good thing or a bad thing?

Let's see if we can get a good thread going...

 

 

 

 

  

Jan 31, 2011 09:38 PM #3
Rainer
23,652
Joe Rocky
Coldwell Banker - McCaffrey Professionals - Brookfield, CT

Hi Jen, Oh I get it and know yours was not a political post, and I published my response with some hesitation for that reason.  However you scratched an itch that has been there for me for while, so I was responding to perceptions advanced by others in other forums - not a good thing to do on AR.

 

That said, the numbers are breathtaking in a country so populous. I imagine the day when they have a true middle class larger than ours and still have two or three times as many still in abject poverty.  My son visits a large interior city there regularly. He often attends business meetings in unheated office buildings - forget A/C.

 

As to international, I think there is already an international presence in commercial real estate. As to residential I'd say why not?  I think some of our domestic markets would be more attractive than others; vacation locales and close to big cities. I too would like to know what others think.

Feb 02, 2011 12:07 PM #4
Rainer
67,469
Laura Reilly
Real Living Real Estate Professionals - Redding, CA
Home Sales Realtor - Short Sale Team Member - Redd

Interesting resource, definately a niche market also.

Feb 04, 2011 08:28 AM #6
Rainer
41,484
Jennifer Chao
caimeiju.com - San Diego, CA

Joe,
Thanks, and I understand where you are coming from. Rhetoric in today's media can definitely have a negative spin.  We really take a proactive stance on removing ourselves from that.  Our goal: Provide the platform for Realtors to do business with buyers from China. Our clients already know the significance of this market. We use AR to educate anyone else who interested.

To respond to your last statement, you are correct. There are certain residential areas that are more popular than others for International buyers. Chinese is the 3rd most spoken language in California after English and Spanish. Other popular places are Vancouver, Florida, New York, Las Vegas, and even Hawaii. Vacation resort communities are also becoming more popular as iinterest in Golf continues to rise in Asia.

Feb 05, 2011 05:41 PM #7
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Jennifer Chao

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