Australia tops Chinese investors’ list for property investment as China loosens COVID restrictions
Chinese property buyers are eyeing Australia as China moves to loosen travel restrictions next week.
While demand from Chinese buyers is not expected to reach the levels seen at the end of the last decade, Australia’s status as a safe destination, its growth potential and its value for money make it attractive to foreign investors, The Australian reported.
Black Diamonds director Monika Tu, who specialises in selling property to Chinese buyers, said signs of improving Sino-Australian relations would boost Australia’s appeal even more.
“With the world so unsettled, right now is the best opportunity for us to market property in Australia, with it considered a very safe place and a favourable investor environment even though it is expensive,” Tu told The Australian. “Improved relations between China and Australia will give wealthy buyers even more confidence to invest in our property market.”
December data from Chinese property portal Juwai IQI showed that Australia outpaced the US and Canada as the most preferred destination for Chinese buyers. New Zealand ranked at number 11.
Late last month, China announced that inbound travellers would no longer be required to quarantine starting next week. While there had been no obstacles for Chinese travellers looking to leave the country, the requirement to quarantine upon return had discouraged many from travelling, The Australian reported.
Tu told the publication that Chinese buyers with Australian visas such as significant investor visas would be the first to look into Australian property, with Chinese New Year later this month likely bringing the first wave of interest.
“I’m fully booked out with clients in the run-up to Luna New Year and in late January and into February,” she said. “We are planning to host a lot of events for them such as intimate dinners or harbour cruises showcasing what is on offer. We are also collaborating with luxury brands as our buyer demographics overlap.”
Foreign property investors are only allowed to purchase new properties and cannot buy established housing, according to The Australian. They are required to pay a vacancy fee if the dwelling is not occupied or rented out for more than six months a year.
Still, some Aussies have called for a ban on foreign property buyers – although experts say such a move would be only a band-aid for the nation’s housing crisis, not a solution.
Read next: Foreign buyers snap up commercial property
The Foreign Investment Review Board’s September quarterly report, published last month, found that China was the largest source country for residential real estate investment, according to The Australian. Chinese buyers have also shown increased interest in Australia’s luxury market in recent months.
Nerida Conisbee, chief economist for Ray White, said off-the-plan apartment developers could see the greatest benefit from China’s decision to relax its COVID protocols.
“I wouldn’t be surprised if [property marketers] were already planning to make their way to China to drum up interest,” Conisbee told The Australian. “We are already seeing a lot of activity in commercial property from Chinese buyers, and that should start to transfer over to residential property.”
