Preparing for 'Exodus' Including Local Real Estate Purchases
Places Where Over a Quarter of Residents Are Chinese
Wealthy Chinese are relocating their lives by sending their children to study abroad in countries such as Korea and Japan and purchasing local real estate.
According to a compilation of reports from The Wall Street Journal (WSJ) on the 2nd, wealthy Chinese are exodusing due to disappointment with the political dictatorship system and economic slowdown. This trend is also impacting Japan's luxury real estate market.
Travelers are wearing masks and waiting for their luggage at Beijing Capital International Airport in China. [Photo by AP/United]
These Chinese individuals, dissatisfied with their country's political and economic situation, prefer cities in Japan that are only a few hours away by plane. Recently, Japan's real estate prices have been relatively affordable for foreigners due to the weak yen, which has been an advantage for wealthy Chinese. In Japan, it is relatively easy for foreigners to purchase real estate.
Additionally, since Japanese partially uses Chinese characters (kanji), it is analyzed that adaptation is relatively easier. Accordingly, the number of Chinese residents in Japan reached approximately 822,000 at the end of last year, an increase of 60,000 from the previous year.
This is the largest increase in recent years. According to a report released by investment immigration consulting firm Henry & Partners in June last year, it is estimated that 13,500 high-net-worth individuals from China will migrate overseas that year.
The media analyzed that during the COVID-19 pandemic lockdown, frustration with the political dictatorship system intensified among wealthy Chinese. The migration wave began thereafter.
They also saw recent economic recession and stock market sluggishness as influencing factors. In fact, there is considerable analysis that recent Chinese economic indicators are losing momentum for recovery. In April, China's manufacturing sentiment showed expansion for the second consecutive month but decreased compared to the previous month, and the service sector, which had driven domestic consumption, remained sluggish.
The land transaction market, reflecting the investment sentiment of real estate companies, is also freezing. On the same day, Chinese economic media Caixin reported that the sales performance of the top 100 companies in April this year dropped to nearly half of that in April last year, and compared to April 2021, it was less than one-third.
Osamu Orihara, a Tokyo real estate agent who was born in China and naturalized, told WSJ, "Due to the influence of Chinese buyers, revenue has increased 3 to 4 times compared to before the pandemic in 2019," adding, "What has changed from the past is that more people want long-term visas."
The media also reported that Tomo Hayashi (45), who left his hometown Shenzhen in China and moved to Tokyo last year, purchased a luxurious beachfront home for about $650,000 (900 million KRW). Among the owners of residences in the 48-story building where metal trader Hayashi lives, about one-third are individuals or Chinese corporations with Chinese names. Residents near Tokyo Bay, where high-rise buildings are clustered, said that typically more than one-quarter of the residents in these buildings are Chinese.
In Korea as well, specialized courses to attract Chinese students have been established, and the flow of students wanting to leave China continues unabated. Those who grew up receiving full support from parents and grandparents under China's 'one-child policy' are often reported to decide to study abroad following their parents' wishes to "leave China and live freely."
WSJ reported that the United States, Canada, and Singapore are also countries attracting Chinese immigrants, and Hong Kong residents often head to the United Kingdom.
Meanwhile, on the 1st, Bloomberg News also cited well-known immigration advisory firms, reporting that "since December last year, inquiries from Chinese people about overseas real estate for migration have noticeably increased," adding, "Those working in information technology (IT) companies tend to prefer a freer atmosphere and show a marked tendency to immigrate."
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