Chinese property purchasing in Australia down 27 percent in 2017: Juwai

Carrie Law, CEO and director of Chinese international real estate website Juwai.com said that capital controls, restrictions on bank financing to offshore buyers, and new foreign buyer taxes and restrictions all served to reduce Chinese investment last year.

 

"This year we expect moderate growth, which is in line with Beijing’s goal of managed, rational overseas investment," Law said.

 

“Despite the higher stamp duties, Chinese still see Australia as a long-term value," Law noted.

 

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"The majority of our residential buyers are purchasing for their own use, because they have children studying or working here, or because they plan to visit regularly or to retire here.

 

"Australia offers a table environment, safety, quality educational institutions, and high quality of life. Both Sydney and Melbourne rank in the top five most liveable cities in the world.

 

“In the first half, the most popular Australian cities for Chinese buyers were Melbourne, Sydney, Brisbane, Adelaide, the Gold Coast, Canberra, and Perth.

 

Juwai found US$14.1 billion of the $US17.4 billion spent my Chinese in Australia in 2017 was on residential acquisitions. Commercial sales totalled US$3.3 billion.

 

“Sources like KPMG suggest that Chinese commercial real estate investment accounts for one-third of all Chinese corporate direct investment in the country.

 

"Political tensions between the two countries have a greater impact in creating uncertainty with corporate commercial real estate investors than they do with individual investors buying residential property for their own use.”