PHOTO: FILE
Chinese Buyers Driving Demand for Luxury Homes in Sydney’s North Shore
Interest in Australian luxury real estate is surging among Chinese buyers, with wealthy investors snapping up properties worth $4 million and more, particularly in Sydney‘s most exclusive areas. According to real estate group Juwai IQI, Chinese buyers with Australian permanent residency are at the forefront of this trend, fueling demand for upmarket homes across the country.
Chinese buyers flocking to Australia are increasingly looking at trophy homes worth at least $4million, new data shows
Bidding Wars for Trophy Homes
Wealthy Chinese businessmen are actively involved in bidding wars for high-end properties in Sydney’s north shore. These buyers are particularly drawn to newly developed homes on subdivided lots that local buyers have shown less interest in. Daniel Ho, managing director of Juwai IQI, noted that the top seven percent of Chinese buyers are seeking Australian homes priced around $4.5 million, which aligns with the median house prices in Sydney’s Coogee and Castlecrag areas.
“We call them ‘frequent flyer buyers’ because they often split their time between China and Australia, juggling business and family commitments,” Ho said. “These buyers, who typically have Australian residency, are keen to raise their families here and are focused on homes priced at $4 million or higher.”
Real Estate Expert Warns of Tension at Australian Auctions as Chinese Buyers Outbid Locals
Increased Interest in Sydney’s North Shore
Thomas Ma, co-founder and CEO of Fang.com.au, reported a 450% increase in enquiries about homes on Sydney’s north shore since 2021, particularly from local Chinese buyers. The area’s appeal lies in its prestigious schools and more attainable home prices compared to Sydney’s eastern suburbs.
The north shore suburbs most in demand include:
- Chatswood: Median house price $3.3 million
- Lindfield: Median house price $3.8 million
- Roseville: Median house price $3.8 million
- Artarmon: Median house price $3.7 million
- Willoughby: Median house price $3.5 million
Peter Li, general manager of the Plus Agency, a real estate firm specializing in Chinese buyers, confirmed the strong demand. “We recently sold two high-end homes on the north shore, both to Chinese buyers with Australian residency. These buyers travel frequently for business but consider both Australia and China home, and they’re upgrading from existing properties in Chatswood.”
Record Sales in Lindfield and Chatswood
One of the most notable recent sales was a $5.6 million home in Lindfield, where a bidding war ensued for a six-bedroom, four-bathroom house on a battle-axe block. After initial offers were rejected, the winning bid was placed by the wife of a Chinese businessman. Li explained that Chinese buyers tend to prefer subdivided lots, which are less appealing to local buyers who value larger outdoor spaces.
The Plus Agency also facilitated the sale of a six-bedroom home in Chatswood for $6.8 million—triple the price it sold for in 2018. This sale highlighted the rising popularity of Chatswood among Chinese buyers, as it is home to the largest Chinese community in Sydney. Lindfield, with its larger lots, is also gaining traction due to its proximity to Chatswood.
Why Chinese Buyers Are Flocking to Australia
Chinese buyers are attracted to Australia for several reasons, including the country’s quality of life, education system, and strong property market. Permanent residents and international students are allowed to buy established homes, with students needing to sell their property six months after leaving the country unless they gain residency.
Mr. Li also highlighted that Chinese buyers often offer prices featuring multiple “eights” because the number is associated with wealth and prosperity in Chinese culture.
SOURCE: THE DAILY MAIL