Why Chinese property buyers ALWAYS seem to win at auction - and it has nothing to do with their bank balances

  • Chinese buyers are consistently outbidding locals at auctions in Australia
  • Leading real estate agents says it's not because they have more money
  • They put it down to razor-sharp auction intelligence and bidding skills
  • Chinese buyers no longer need translators and are more confident  

By Daniel Peters For Daily Mail Australia

Published: | Updated:

Chinese buyers are consistently beating locals at auctions in Australia. Leading real estate agents put it down to their superior bidding skill sets (stock image)

Chinese buyers are consistently beating locals at auctions in Australia. Leading real estate agents put it down to their superior bidding skill sets (stock image)

Chinese buyers are consistently outbidding locals at auctions in Australia, and it has nothing to do with their bank balances.

According to leading real estate agents, the bidding skill sets of Chinese buyers that speak English as a second language have skyrocketed over the past few years.

Gavin Norris, head of Chinese international property website Juwai.com, told the Advertiser it came down to their willingness to 'fight for every dollar.'

'It's not because they overpay,' he told the publication. 'It's because, like every smart buyer, they fight for every dollar.

'If a Chinese buyer doesn't feel comfortable at an auction, they very commonly ask a friend or family member who is more experienced to stand in for them,' Mr Norris said.

'That tends to produce some individuals who are highly skilled and very cool and comfortable under pressure.'

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Leading real estate agents say Chinese buyers are outbidding locals because they 'fight for every dollar' - not because they overpay for property (stock image)

Leading real estate agents say Chinese buyers are outbidding locals because they 'fight for every dollar' - not because they overpay for property (stock image)

Gavin Norris, head of Chinese international property website Juwai.com, said the days of Chinese buyers slowing down auctions with interpreters were long gone (stock image) 

Gavin Norris, head of Chinese international property website Juwai.com, said the days of Chinese buyers slowing down auctions with interpreters were long gone (stock image) 

Why are Chinese buyers better at auctions? 

 - They come with a clear set of tactics and 'fight for every dollar'

- They bid at uneven increments to mix up the flow and speed of the auction

- They enlist the help of level-headed friends who have auction experience to help them on the day

- They research properties and talk to auctioneers

- They know how to keep a straight face and hide their emotions 

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Mr Norris said the days of Chinese buyers slowing down auctions with interpreters were long gone.

He said Chinese buyers were in reality some of the most 'sophisticated' bidders at auctions, with a huge improvement in English fluency playing a big part in their success.  

It comes amidst official reports indicating that Chinese investment in Australian real estate has experienced a huge surge, with figures doubling in just one year.

According to the Foreign Investment Review Board's annual report, China has spent $24.3 billion on Australian property in 2014-15, a staggering figure that triples the amount spent by buyers from the United States.

Chinese investment in Australian real estate has experienced a huge surge, with figures doubling in just one year (stock image)

Chinese investment in Australian real estate has experienced a huge surge, with figures doubling in just one year (stock image)

 

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