PHOTO: Chinese buyers of today differ significantly from those in 2019, before the COVID-19 pandemic. FILE
Chinese interest in Australian real estate has grown so significantly that potential buyers now need to schedule appointments to view properties in sizable groups, according to a real estate agent. Peter Li, the general manager of Plus Agency, a real estate agency with offices in Sydney and Shanghai, disclosed that they arrange seminars for up to 20 prospective buyers at a time, complete with refreshments.
In the past, walk-in buyers were typically assisted individually by available agents at the office or showroom. However, due to the sheer volume of interested buyers, this approach is no longer feasible. Consequently, they now escort groups of buyers to the specific properties they are most interested in viewing.
Chatswood, a sought-after Sydney suburb, has become popular among both Chinese buyers and residents. The Central Business District (CBD) remains another attractive area.
https://propertynoise.co.nz/au/real-estate-expert-warns-of-tension-at-australian-auctions-as-chinese-buyers-outbid-locals/
Juwai IQI, a company specializing in marketing properties to potential Asian buyers, noted that the typical Chinese buyer is now more likely to be a permanent resident rather than a foreigner. This shift means they are purchasing properties for their own use, emphasizing the need for more living space.
Daniel Ho, the managing director and co-founder of Juwai IQI, explained that the Chinese buyers of today differ significantly from those in 2019, before the COVID-19 pandemic. Before the pandemic, a larger proportion of Chinese purchases were made by offshore investment buyers. However, the current trend is that most Chinese buyers intend to move to Australia and purchase properties for personal use. Many already hold permanent residency or dual passports in Australia, driving their preference for larger apartments, townhouses, or single-family homes over small inner-city apartments.
Chinese interest in Australian real estate is now so strong prospective buyers have to make an appointment to be shown homes in large groups, a real estate agent has revealed (pictured are prospective buyers in Sydney)
Australia experienced a record-high intake of permanent and long-term residents, totaling 399,850 in the year leading up to July. The data from the Australian Bureau of Statistics showed that 1,041,400 people moved to Australia within a year, with skilled migrants and international students accounting for 122,690 of these arrivals in July alone. Including tourists and short-term working visas, Australia’s total arrivals reached 1,743,390, marking the highest level since January 2020, just before the pandemic.
https://propertynoise.co.nz/au/chinese-buyers-snapping-up-australian-residential-real-estate/
Permanent residents are allowed to purchase existing homes, while foreigners are restricted to new houses or apartments, as well as vacant land, with approval from the Foreign Investment Review Board.
Australian real estate is becoming increasingly attractive due to financial challenges faced by Chinese property developers like Evergrande and Country Garden, stemming from years of constructing unoccupied apartment buildings. Chinese President Xi Jinping’s stringent policies on property developer borrowing, alongside crackdowns on free speech and entrepreneurship in Hong Kong, have further enhanced Australia’s appeal to wealthy individuals.
A study by Song Shi, an associate professor at the University of Technology, Sydney’s School of Built Environment, revealed that Chatswood is the only suburb that appears in both the top 10 lists for Chinese buyers and for housing the largest number of Chinese residents. Nearly half of Chatswood’s residents (42.4%) reported Chinese ancestry in the 2021 Census. The suburb’s median house price of $2.93 million is significantly higher than Sydney’s overall median of $1.36 million. Chatswood’s property values increased by 2.6% in the past year, surpassing greater Sydney’s 1.3% increase, as indicated by CoreLogic data.
https://propertynoise.co.nz/au/why-more-chinese-buyers-are-snapping-up-sydney-property/
However, this growth was still overshadowed by Hurlstone Park’s impressive 16.3% increase, pushing the median house price in that part of south-west Sydney to $2.014 million. Mr. Shi’s study, published in the Journal of Housing Studies, identified Sydney’s city center as the most favored suburb for Chinese buyers, followed by Sydney Olympic Park, Parramatta, Edmondson Park, Chatswood, Macquarie Park, Epping, West Ryde, Potts Point, and Mosman. When considering the proportion of people with Chinese ancestry in the population, Burwood, Eastwood, Hurstville, Rhodes, Chatswood, Haymarket, Carlingford, Chippendale, Zetland, and Ultimo were the top-ranking suburbs. Mr. Shi emphasized that Chinese demand primarily drove up property prices in areas with significant Chinese resident populations, as Chinese restrictions on capital outflows in 2017 only affected a limited number of Sydney suburbs.