Chinese govt real estate clampdown good for Sydney prestige markets: Angus Raine
More Chinese investor money is expected to flow into the prestige Sydney real estate market on the back of tighter controls being implemented in Beijing, according to Angus Raine, CEO of Raine & Horne.
Recent measures announced by the Chinese government aimed at curbing real estate ownership include stricter enforcement of capital gains tax on home sale profits and the imposition of higher deposits for the purchase of second homes.
“Turning the screws on property speculation appears to be aimed at limiting a potential asset bubble in China,” says Raine.
“The upshot is that cashed up Chinese nationals could look to foreign property markets, which will surely mean more money flowing into Australian real estate in capital cities such as Sydney.”
Raine notes that the latest actions by the Chinese government comes soon after the introduction of the ‘Significant Investor Visa’, which accelerates migrant visas for foreigners who invest more than $5 million in approved investments in Australia.
“We’ve had a few wins in recent times with the Significant Investor Visa, and combined with the Chinese government’s restrictions, this will surely mean more money finding its way into the Eastern Suburbs housing market,” says Barry Goldman, co-principal of Raine & Horne Double Bay and Bondi Beach.
Goldman says his office has already read received “significant interest from Chinese buyers” including “plenty of interest” in a five bedroom home at 141A Victoria Road in Bellevue Hill, the Sydney suburb, with the highest median prices.
“It ticks all the boxes with Chinese buyers and investors including harbour views, excellent build quality and close proximity to schools,” says Goldman.
Another Raine & Horne estate agent, Hugh Macfarlan of Chatswood/Willoughby, said he expected the legislative changes in China would flow through to the Sydney North Shore real estate market.
“Around 30% of our Chinese buyers are overseas investors, so we expect that any restrictions on real estate in China will flow through to our markets,” he says.
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