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国 际 房 产 搜 索 引 擎 Where Chinese find international property BEHIND THE BRAND NAME “Juwai” is a word created from 2 Mandarin characters – “ju” (home/living) & “wai” (overseas/outside) “Juwai” is now a more searched term on Baidu than “international property”

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Page 1: 2 REHDA MalaysianRealestate GeorgChmiel Juwairehdainstitute.com/wp-content/uploads/2017/11/4... · • OBOR Policy promoted by China government and the market potential growth in

国 际 房 产 搜 索 引 擎 Where Chinese find international property!

BEHIND THE BRAND NAME“Juwai” is a word created from 2 Mandarin characters – “ju” (home/living) & “wai” (overseas/outside)“Juwai” is now a more searched term on Baidu than “international property”

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We have the oldest mission

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One Belt, One Road (OBOR)

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One Belt, One Road (OBOR)

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To empower Chinese to be global residents

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The Juwai PlatformJUWAI OFFICES

Shanghai & Hong KongKuala Lumpur, Sydney, US, Canada

List JuwaiJuwai AdminJuwai.com

CUSTOMERS居外用户CONSUMERS

CHINESE INTERNATIONAL

Information& Education

Communication(Call Centre)

Localisation

Translation

PROPERTYCHINESE CONSUMERS

PLATFORM

GLOBAL CHINESE&

DOMESTIC CHINESE

2.5 millionProperties from

131 countries

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Source: 中国指数研究所 China Index House

Soaring property prices in China

0K

5K

10K

15K

20K

25K

30K

35K

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CN

Y /

PSM

China property price growth in Tier-1 cities (2006-2016)

Guangzhou Shanghai Beijing Shenzhen With China’s rapidly-rising prices in Tier-1 cities, anyone who bought property 10 years ago has now made millions.

• Shenzhen – 269%• Beijing – 210%• Shanghai – 189%• Guangzhou – 138%

This is one of the reasons why so many Chinese are wealthy enough to buy international property today.

↑ 210%

↑ 269%

↑ 189%

↑ 138%

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Cost of living in China vs. Worldwide

#1 Hong Kong#3 Zurich, Switzerland#4 Singapore#5 Tokyo, Japan#7 Shanghai, China#10 Beijing, China#11 New York City, US#12 Shenzhen, China#17 London, UK#18 Guangzhou, China#21 Dubai, UAE#22 Osaka, Japan#26 San Francisco, US

#27 Los Angeles, US#29 Nanjing, China#30 Tianjin, China#31 Shenyang, China#33 Qingdao, China#34 Chicago, US#35 Chengdu, China#37 Honolulu, US#38 Washington, US#42 Sydney, Australia#44 Paris, France#45 Miami, US#47 Boston, US

#69 Perth, Australia#71 Melbourne, Australia#74 Bangkok, Thailand#80 Manila, Philippines#88 Ho Chi Minh City, Vietnam#93 Jakarta, Indonesia#96 Birmingham, UK#98 Auckland, New Zealand#142 Vancouver, Canada#145 Toronto, Canada#142 Kuala Lumpur, Malaysia#155 Montreal, Canada#162 Calgary, Canada

9 cities in China rank as one the top 35 most expensive cities to live in.For comparison, top Chinese buyer destinations Los Angeles ranks #27, Sydney ranks #42, while Vancouver ranks at #142.

Source: Mercer “22nd Annual Cost of Living Survey (2016)”

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Demand

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Real estate is their #1 choice of overseas investment

TYPES OF OVERSEAS INVESTMENT海外投资的类型

Source: Global House Buyer & Hurun Report – Overseas Property Needs of the Chinese HNWI

TYPES OF OVERSEAS PROPERTY THEY’RE LOOKING TO INVEST IN?

海外置业房产类型

2.6%

5.5%

5.5%

7.0%

7.8%

47.0%

57.4%Apt/Condo | 公寓

Villa | 别墅

Commercial (Office Buildings) | 商务办公楼

Retail (Stores/Shops) | 商铺

Vineyard/Castle | 酒庄/城堡

Hotel | 酒店

Farm/Ranch | 农场/牧场2.6%

3.0%

3.3%

8.4%

9.3%

13.0%

17.1%

43.4%Real Estate | 房地产

Fixed Income | 固定收益

Stocks | 股票

Savings | 储蓄

Alternative Investments | 另类投资

Private-owned Company | 非上市公司

Private Equity | 私募股权

Gold | 黄金

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Chinese buyers prefer new homes

5.59

6.57

8.33

A remodeled or rebuilt secondhand home

An existing home (previous owner)

A brand new home

HOW STRONGLY WILL YOU CONSIDER THE FOLLOWING?

(AVERAGE ON 1-10 SCALE)

8%

15%

77%

Not important

Don't mind

Important

HOW STRONGLY WILL YOU CONSIDER THE FOLLOWING?

(WITHIN EACH CATEGORY ON 1-10 SCALE)

13%

44%

42%

Not important

Don't mind

Important

30%

40%

30%

Not important

Don't mind

Important

Source: Juwai Chinese Consumer Survey March 2017

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WHAT DRIVES CHINESE TO INVEST IN PROPERTY ABROAD?海外投资的主要原因

1%

1%

3%

3%

5%

6%

22%

23%

25%Risk Diversification | 分散风险

Children's Education | 子女教育

Capital Appreciation | 资金升值

Financial Security | 资金安全

Family Wealth Inheritance | 家庭财富传承

Retirement Planning | 退休准备

Trend Following | 跟随市场投资趋势

Overseas Travels | 海外旅游

Emigration | 移民

Why are buyers looking overseas?

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Prime Minister Datuk Seri Najib Razak, in tabling the 2018 Budget on Thursday, had declared the year 2020 as Visit Malaysia Year.

That same year, Malaysia is also slated to host a series of major international events such as the APEC Summit, World Congress of Information Technology (WCIT), as well as the Commonwealth Heads of Government Meeting(CHOGM).

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Medical TravelIn tabling 2018 Budget, Najib revealed plans to:• Malaysia as the “Fertility and Cardiology Hubs of Asia” (eVisa services, high-end

medical tourism packages)• Introduction of Flagship Medical Tourism Hospital Programme with special incentives;• Investment Tax Allowance for Private Healthcare Facilities promoting medical tourism

extended until 31 December 2020;• Double tax deduction for accreditation expenses to be extended for ambulatory care

centres and dental clinics; and,• Exemption of Income on Value of Increased Export of Healthcare Services rate to be

increased from 50% to 100% for private healthcare from YA 2018 to YA 2020.

RetirementInternational Living as the country with the “Best Healthcare System in the World”for three consecutive years (2015 - 2017), in their Annual Global Retirement Index.

Other Reasons

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Additional services of use to Chinese buyers

2%

1%

4%

7%

8%

11%

12%

15%

17%

21%

Others

Anticipation of the exchange rate of other currencies

More comprehensive information about the agents

Property tour booking

Information on immigration services

Information on financing institutes and interest rates

Information on schools/universities

Information on transportation and neighbourhoods

Testimonial from other buyers

Access to reliable property management service

• General investment trend overview

• Recommendation from other buyers

• Discussion with overseas agents• On-site property inspections• Emails for market news and new

listings• Advertisement• Smartphone application• One-stop service for overseas

property investment

OTHER FACTORS

Source: Juwai Chinese Consumer Survey March 2017

WHICH ADDITIONAL SERVICE WOULD IMPROVE YOUR OVERSEAS PROPERTY INVESTMENT EXPERIENCE?

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© Juwai Limited 2017, Confidential and Proprietary Information PAGE 18

Chinese enquiries to Malaysia

Source: Juwai IQ data, H1 2017 Juwai.com Consumer views & enquiries (Consumer motivations are based on enquiries)

Note: Consumers enquiring about Malaysiamay be driven by more than one motivation

AVG. MONTHLY VIEWS ENQUIRIES CONSUMER MOTIVATIONS (H1 2017)

9.9%

58.5%

65.4%

3.7%

Education

Own Use

Investment

Emigration

H1 2016 H2 2016 H1 2017

+42%

H1 2016 H2 2016 H1 2017

+21.3%+3.7%

+67%

138% increase 1H 2017 vs. 1H 2016

More enquiries about Malaysian property prices than US property prices Almost as many enquiries for property prices as for visa to Malaysia

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Other indications that Malaysia is coming more into focus again?

OBOR

KLroseintothetier-1number18citydestinationsfavoredbyChinesein2016

• JOHOR BAHRU

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Are overseas buyers driving prices up?

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© Juwai Limited 2017, Confidential and Proprietary Information PAGE 21

Price points of interest in Malaysia

Source: Juwai IQ data, Jan-Oct 2017 Juwai.com Consumer views & enquiries (Consumer motivations are based on enquiries)

PRICE RANGE: CHINESE CONSUMER ENQUIRIES (USD)(JAN-OCT 2017)

0.0%0.2%2.9%3.4%

1.6%

5.0%4.9%2.3%

12.5%

30.5%31.2%

0%

20%

40%

5-10m3-5m2-3m1.75-2m1.5-1.75m1.25-1.5m1-1.25m750k-1m500-750k250-500k0-250k

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© Juwai Limited 2017, Confidential and Proprietary Information PAGE 22

Important factors when buying an overseas property

5% 12% 14% 14% 16% 17% 17%

39% 42% 43%

46% 47% 48% 51% 52%

69% 77% 79%

Others Accessability to friends/family

Property customisabilityEnergy efficiency

Character/Uniqueness of propertyMultigenerational livingPrestige and exclusivity

Ethnicity of community/surrounding communitiesCommunity amenities (pool, park, golf course, etc)

Yard/Land sizeConstruction quality

Proximity to good schoolsLow maintenance cost

Property rentabilityEstablished neighbourhood

Convenient to shopping, entertainment, activitiesNeighbourhood safety

Low cost per square foot (more value for money)

FACTORS OF IMPORTANCE(USERS COULD SELCT ALL THAT APPLIED)

Source: Juwai Chinese Consumer Survey March 2017

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What are attractive features in Malaysia developments?

• Offer financing option for foreigner• Typical investment range between 1.2 - 3 million MYR /Unit• ROI of above 7% will be more favorable

• Location: Kuala Lumpur, Johor Bahru and Malacca (OBOR)

• Safety

• Post sale service or fixed income investment

• Property management services provided or package as fixed income and rental guarantee, as Chinese are buying more for investment purpose.

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• OBOR Policy promoted by China government and the market potential growth in SEA market• Well established infrastructure

• Quality English Education• Malaysia is springboard for Chinese 2nd generation to study before they go to Europe/US• If citizenship obtained, Malaysian Chinese returning to China for GaoKao (Chinese college

entrance exam) can get extra points

• More pleasant lifestyle compared with Chinese cities, vacation home, air quality• Convenience and feasibility for retirement living, local quality healthcare system.• Affordable prices and affordable tuition• Physical distance to China is comparably closer and lower maintenance cost• Malaysia is next to Singapore. Work in Singapore but live in Malaysia.

• Convenience of obtaining visa to Malaysia, destination for vacation.• 2nd Home Plan, 10-year visa free, ideal location for vacation, residence and retirement life.• Immigration policy, low entry with 2nd home residence program for foreigners.

• Use of foreign registered company for investment back in China for tax waiver or otherChinese local incentives and advantages to foreign investment.

Why Chinese may choose Malaysia

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How to best reach overseas buyers

Current Other Existing Models:• China Property Exhibitions US$20,000+

• China Mass Print Advertising US$14,000+ per ¼page• Local Agencies < US$50K + commission

• Setting up offices in China > US$200k

Juwai’s Offer for REHDA members:

Branding

Traffic Driver

Landing Page Behind Firewall

Leads & Sales

For more information,

please contact:

[email protected]

Step 1: BrandingPR Strategy 3 monthsContent Marketing 1 articleStep 2: Traffic DriverJuwai traffic 3 monthsExternal China targeted advertising 3 monthsStep 3: Landing PageCompany Profile Page 6 monthsListing Details 6 monthsStep 4: Leads & SalesChina Desk Service 6 monthsMalaysia Property tour TBCChina Agent Partner TBC

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Whilst the world thinks of China as an emerging market…….

… Chinese view the world as an emerging opportunity

谢谢 | Xiè Xiè | Thank you!