Property buyers from China spent AUS$5.9billion in 2013 and the number of Chinese agents in
Australia is rising, too, increasing five-fold in five years, it is claimed.
Not only is the number of Chinese buyers of Australian property rising, but the amount of agents is also fast increasing.
The total of Chinese property agents marketing and selling Australian homes to mainland buyers has risen at least fivefold over the past five years, The Australian newspaper reports.
Chinese investors are also on the rise, spending AUS$5.9billion in 2013 on Australian homes and agents say there is unprecedented demand for existing properties from foreign investors.
Other figures back up the fact that Chinese overseas property investment is rising. The 150,000 Chinese emigrating annually are expected to seek and buy properties globally worth more than 75billion yuan.
Fu Zhenhuang, an analyst from Deloitte, says the most popular destinations have been
London, and Manchester, New York, Singapore, Sydney and Hong Kong.
In the first quarter of 2014, institutional investors’ offshore property investments rose 25% year-on-year to US$2.1billion, while the sum going to residential property grew by 80%, according to global agent, JLL.
The overseas residential property investment by China’s institutional investors from January to March exceeded US$1.1billion, smashing last year’s record of US$600million, with most favouring Australia, the UK and the US.
In Australia, it is claimed that some Chinese residential buyers have been able to exploit loopholes in Foreign Investment Review Board guidelines that are in place to protect local buyers.
Foreign investors are currently only allowed to buy off-plan developments, but some Chinese buyers are using law firms or children studying in Australia to buy luxury properties, a federal parliamentary committee set up examine the overseas property sector has heard.
The Foreign Investment Review Board has so far failed to prosecute any buyer for breaching the rules.
Chinese buyers are increasingly interested in Australia because of the current tax laws and the low 10% deposit required. Most commercial Chinese banks demand at least a deposit of at least 30%.
“In 2009, there were only around 20 property agents for Australian properties based in China, but now there are already over 100 agents,” he says.
The Foreign Investment Review Board committee findings are due to be made public in October.
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