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LJ Hooker Boosts China and Asia focus with increased partnership with Juwai.com

On May 22 2013


Leading Australian real estate franchise network LJ Hooker expects to sell more Australian and New ...

Leading Australian real estate franchise network LJ Hooker expects to sell more Australian and New Zealand property to Chinese buyers as a result of a new, three-year strategic partnership it has just signed with Juwai.com.


LJ Hooker is positioning itself to become the most trusted Australian and New Zealand property brand in the Chinese market. It has already established a firm brand and value position over the last 11 months, due to its first agreement with Juwai.com, which was signed recently.


The new partnership will provide LJ Hooker with the following benefits:


• Participation in elite international property expos in China, attended by high net worth Chinese buyers. 


• Prominent exposure to the Chinese market, through: special corporate landing page hosted behind China’s great firewall; corporate banner ad campaigns designed around the core offshore purchasing seasons; company branding for offices on details pages, and market insights reports on brand engagement and listings performance.


• Cost effective access to the Chinese market. All of LJ Hooker’s more than 700 offices will receive exclusive discounts on selected premium advertising products on Juwai.com, driving greater benefit to vendors by making China marketing even more affordable.


LJ Hooker in China
LJ Hooker has always been a leader in China. Sir Leslie Joseph Hooker, the company founder, was himself half Chinese. LJ Hooker set up its first office in Hong Kong in 1999 and in Shanghai in 2004.


This month, LJ Hooker was the first real estate network in Australia or New Zealand to sign a strategic partnership with Juwai.com. The partnership has been popular with LJ Hooker franchisees. Approximately 30% of calls the franchise network makes to the LJ Hooker call centre are about how to maximize the benefits of working with Juwai.


At home, vendors are becoming aware of the influence of Chinese buyers and how to reach them. The Juwai.com partnership helped LJ Hooker a number of high value listings.


Fast-Growing Chinese Buying
The Chinese market for Australian property is large, fast-growing and wealthy. Besides the 2.7 million Chinese with more than US$1 million in investable assets,  there are 60 million upper middle class Chinese who also fit the profile of typical purchasers of overseas property.


This high net-worth group will expand at a 20 percent compound annual growth rate over the next three years.  One-third of wealthy Chinese have assets overseas  and they have a voracious appetite for overseas property investments.


Chinese buyers spent over AU$4.2billion on Australian property in 2011, a significant increase from the AU$1.1 billion spent in 2009. For Australian agents, transactions from Chinese buyers earned about AU$48 million in commission in 2011.


Australia’s Significant Investor Visa has generated interest among wealthy Chinese. Of Chinese with personal assets of over AU$15.5 million (US$16 million) 27% have already obtained foreign residency, and 47% are considering it.  Australia is a top destination because of its proximity to China, stable real estate market, good schools and growing economy.


Global Chinese Influence
Juwai.com has fast become the number one international property site in China, and continues to dominate global Chinese communities. Demand for international property, continues to accelerate.


Although an emerging market, it is none the less quickly becoming very sophisticated. Chinese buyers are undertaking longer periods of research before they leave China, often researching market data, yield rates, proximity to key services, and the companies selling property.


CEO Quotes
Georg Chmiel, Chief Executive of LJ Hooker, said:


“When vendors consider which agent to choose, it will help them to know that only LJ Hooker is able to market their property to the fastest growing source of international buyers, China.


“On the whole, Australian agency brands are not well known in China. Our extra branding and advertising on Juwai.com will mean that Chinese buyers know and trust LJ Hooker long before they hear about any other agency network.


“Our partnership with Juwai.com has been productive and popular with LJ Hooker franchisors. It brings buyer leads. And, many of our agents use it as a key selling point with Australian vendors. It helps them win listings.”


“LJ Hooker is the first real estate agency network in Australia to be so proactive and effective at reaching Chinese buyers.


Simon Henry, Co-CEO of Juwai.com, said:


“Of all the real estate networks in Australia, LJ Hooker has been the quickest to realize the potential of Chinese buyers and the most effective at tapping that potential.


“Our Chinese users constantly ask us which agents they can trust in Australia, and which ones can they work with. With this investment, LJ Hooker is telling them, ‘You can trust us. You can work with us.’”


“The pace at which the market is evolving, and becoming more sophisticated is astounding. 14 months ago, 97% of consumers would visit a property before purchasing, today it is down to 90%. We are constantly updating our information and products to satisfy the growing needs of our consumers.”


“There are some interesting market nuances emerging. For instance, Chinese buyers are now more confident when planning property inspection and buying trips. It can take 12 weeks to obtain their visa to visit Australia and they use that time to thoroughly research the market. That makes it critical to reach them before they leave China.”
 

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