Juwai

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<p class="p1">GUEST OBSERVER</p>
<p class="p1">For Michael Hickinbotham, Managing Director of South Australia’s number-one home builder, his company’s deep-seated family roots and commitment to innovation, quality, and value make the Hickinbotham Group a trusted household name today — some 60 years after the first house went up.<span class="Apple-converted-space"> </span> </p>
<p class="p1"><span class="s1">His father and grandfather, Alan David and Alan Robb respectively, established the company more than 60 years ago. Today, it has built 40,000 homes and more than 50 community estates and maintains the founders’ mission of creating beautiful, quality homes for South Australians.</span></p>
<p class="p1"><span class="s1">Hickinbotham tells me he proudly attributes the company’s ongoing success to its core values.<em><span class="Apple-converted-space"> </span></em></span></p>
<p class="p1"><span class="s1">“Above all, I believe in the concepts of innovation, creativity and value. It’s innovation and creativity that allow us to create value and, it’s the ability to offer superior value that underpins our success,” he enthusiastically shares.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Hickinbotham Group is the only homebuilder to create and successfully manage brands for every segment of the market, from first home buyers to the middle market and all the way up to luxury homes.</span></p>
<p class="p1"><span class="s1">But keeping the company at number one, Hickinbotham explains, takes tenacity and a passionate team that thrives on a sense of urgency. “When we decide to do something, we commit to it, and we do it as well as we can.”</span></p>
<p class="p1"><span class="s1">He says, “To sell significant volumes of real estate you have to offer unmatched value. That starts with beautiful designs, great build quality, and fantastic service and is backed up by people who care.”</span></p>
<p class="p1"><span class="s1">While Hickinbotham says luck has played a part of the company’s success, he also notes the company has continued to pioneer through significant challenges, including the South Australian State Bank collapse in the 1980’s, the Global Financial Crisis, and the residential building downturn of the mid- and late-2000’s.</span></p>
<p class="p4"><span class="s1">The family business emerged from each crisis stronger, smarter, and wiser.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1"><strong>South Australian Heritage</strong></span></p>
<p class="p4"><span class="s1">Hickinbotham’s father and grandfather were the first in the family to develop homes for sale, starting with a house in 1954 on Sturdee Street in Linden Park, an inner-eastern suburb of Adelaide. I understand that house still stands today and is in immaculate condition.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">These are humble beginnings, but both men had a vision to improve communities that still inspires the company’s success today.</span></p>
<p class="p4"><span class="s1">His father was a renowned sportsman who represented South Australia and Geelong in football and seemed larger than life. He was well read and engaged with the world but determined and single-minded about the family business.</span></p>
<p class="p4"><span class="s1">His grandfather —known to many as “Hick”— was a respected academic and the founder of Australia’s most famous winemaking course at Roseworthy, which is now part of the University of Adelaide.</span></p>
<p class="p4"><span class="s1">The legacy of these two men drive Hickinbotham to try new things.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“While I don’t like failures, I accept that if you don’t have some failures you’re not pushing the envelope far enough, you’re not testing your limits, you’re not growing,” Hickinbotham said. </span></p>
<p class="p1"><span class="s1">“With business you have to learn to take risks and to minimise risk where you can. You have to be willing to fail and, more than that, to face your failures squarely and learn from them.”</span></p>
<p class="p4"><span class="s1"><strong>Creating homes, not houses</strong></span> </p>
<p class="p4"><span class="s1">Although a trained lawyer, Hickinbotham chose property. He could have also joined his family’s other business, which is wine. His older brother David oversees a business that produces excellent wines. Twice they have been ranked among the 100 best in the world by <em>Wine Spectator </em>magazine.</span></p>
<p class="p4"><span class="s1">“I love real estate because it is so fundamental to human happiness,” Hickinbotham says. “Nothing improves lives like putting a roof overhead. Real estate is also a time-honoured way for people to build their wealth.”</span></p>
<p class="p4"><span class="s1">“I whole-heartedly believe the family serves the business, not the other way around. The business, in turn exists to serve our customers and the community”.</span></p>
<p class="p4"><span class="s1">And, as Hickinbotham confidently and proudly states, it is this philosophy and commitment that will continue to guide the business for the next generations.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">Hickinbotham Group was the first Australian developer to put telephone and power lines underground; the first to impose restrictive covenants on the felling of trees at a new home estate; the first to win a Civic Trust award for a housing development. They were the first to store run-off stormwater in the aquifer for later re-use. They were also the first to develop a privately-owned public school at a time when the South Australian State Government couldn’t afford to fund new schools.</span> </p>
<p class="p4"><span class="s1">Notably, the company recently signed an agreement with Elon Musk’s Tesla to explore the deployment of Tesla batteries in its estates. And the company already puts solar on many of the homes it builds.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">Hickinbotham Group has even worked on plans to take an entire housing estate “off the grid” via photovoltaic cells and batteries. This means homeowners might be able to earn revenue by selling excess power back to the grid.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1"><strong>Advice for First Time Buyers and Investors</strong></span> </p>
<p class="p4"><span class="s1">As a proud Adelaidean, Hickinbotham whole-heartedly believes his city is the best in Australia for first home buyers.</span></p>
<p class="p4"><span class="s1">“You will get a lot more for your money in Adelaide than in Sydney or Melbourne,” he says.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">“Infrastructure here is less stretched. Prices are not as high, so there is a lower entry cost. Adelaide is beautiful and the perfect size at 1.3 million people.”</span></p>
<p class="p4"><span class="s1">According to Hickinbotham Group, South Australia is a less volatile market to invest in because traditionally it hasn’t been subjected to the same booms and busts as other capital cities.</span></p>
<p class="p4"><span class="s1">“I have also lived in London, Sydney and Melbourne, and I love those cities. But in Adelaide, I can take the family to the beach, or we can go to the wineries and small towns in the Adelaide Hills. Both are only about 30 minutes from the city centre.”</span></p>
<p class="p4"><span class="s1">And, naturally, he firmly believes houses are a fantastic investment.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">“The secret to investment success in property is to understand that it is the land that appreciates, not the buildings”, he explains.<span class="Apple-converted-space"> </span></span></p>
<p class="p4"><span class="s1">“If you’re in a block of 200 apartments, when the land value increases, the extra value is divided 200 times. That’s the main reason why houses have been such a good investment for such a long time.”</span></p>
<p class="p1"><span class="s1">GEORG CHMIEL<em>, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to Michael Hickinbotham in his regular column giving insight into the leading minds of Australian property experts.</em></span></p>
<p class="p1"><span class="s1"><em>He has spoken with LJ Hooker agent Bill Malouf about the </em><a href="https://www.urban.com.au/expert-insights/investing/82193-georg-chmiel-chats-with-bill-malouf" target="_blank"><span class="s2"><em>ins and out of the Sydney market</em></span></a><em>, REINSW president Leanne Pilkington about <a href="https://www.urban.com.au/expert-insights/investing/83830-georg-chmiel-chats-with-reinsw-president-leanne-pilkington-on-women-in-real-estate" target="_blank">women in real estate</a>, developer Larry Kestelman about </em><a href="https://www.urban.com.au/expert-insights/investing/85169-georg-chmiel-chats-with-larry-kestelman-about-developing-your-first-property" target="_blank"><span class="s2"><em>developing your first property</em></span></a><em>, Harcourts boss Mike Green on </em><span class="s2"><em><a href="https://www.urban.com.au/expert-insights/investing/86232-georg-chmiel-chats-with-harcourts-boss-mike-green-on-real-estate-investment-secrets" target="_blank">real estate investment secrets</a>, Ironfish chief Joseph Chou on <a href="https://www.urban.com.au/expert-insights/investing/87440-georg-chmiel-talks-with-ironfish-ceo-joseph-chou-about-whether-to-invest-in-today-s-market" target="_blank">investing in today's market</a> and liveability guru <a href="https://www.urban.com.au/expert-insights/investing/90628-georg-chmiel-talks-with-liveability-guru-cecille-weldon-about-unlocking-a-home-s-hidden-value" target="_blank">Cecile Weldon</a>.</em></span></span></p>
<p class="p4"><span class="s1"> </span></p>
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jrobinson-rf4aSBido9

Georg Chmiel chats with Hickinbotham Group's Michael Hickinbotham about the home building family business

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<p>Georg Chmiel chats with Harcourts co-owner Mike Green about secrets for real estate investing.</p>
<p class="p1"><span class="s1">One of the most charming and gregarious people in the real estate industry calls himself an introvert. But what will really surprise you about Harcourts MD Mike Green is the job that he sought before becoming an agent and what he has to say about investing in apartments.</span> </p>
<p class="p1"><span class="s1">Green is co-owner of international real estate network Harcourts – a New Zealand native who made the hop to Brisbane (for the weather) and has since conquered not only Australia but nine other countries as well.</span> </p>
<p class="p1"><span class="s1">We will get into Green’s secrets for real estate investing, but first let’s look at how he climbed the business ladder. He got into real estate purely by accident.<span class="Apple-converted-space"> </span></span> </p>
<p class="p1"><span class="s1">“I was looking through the newspaper for a job, having just left university” he says. “I applied for a job washing cars in a car yard, and the guy turned me down.”<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">That rejection sent Green back to the employment classifieds (remember those?). Eventually, he talked his way into his first property job at 19 as a real estate sales consultant with no experience and only one year of university. He hasn’t looked back since.</span></p>
<p class="p1"><span class="s1">Does he still pine for the missed opportunity to wash cars all day long? I didn’t ask him, but I imagine not.</span></p>
<p class="p1"><span class="s1">“I went into a profession that I just clicked with,” he told me. “I love the freedom of it, the impact you can have on people’s lives. Eventually, my wife Irene and I opened our own Harcourts franchise. Now (Harcourts Chairman) Paul Wright, Irene and I are the owners of the Harcourts international franchisor.”</span></p>
<p class="p1"><span class="s1">Green’s secrets to success in business are available to anyone. “The reality is,” he says, “if you hang around long enough, you end up at the top — as long as you don’t do anything stupid and don’t annoy people.”</span></p>
<p class="p1"><span class="s1">I have managed hundreds of people in my career and, as simplistic as it sounds, this advice is actually quite profound.</span></p>
<p class="p1"><span class="s1">DISRUPTON</span></p>
<p class="p1"><span class="s1">Green runs a major international real estate agency network with more than 900 offices in 10 countries. Is he worried about losing it all to a tech giant like realestate.com.au, purplebricks.com or Google?<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Not a bit.</span></p>
<p class="p1"><span class="s1">“The only thing we need to worry about is disrupting ourselves by not delivering value,” he told me. Selling a home “is such an emotional and traumatic experience. Our clients actually want an advisor to help them through the process. It’s very hard to disrupt when you have hundreds of thousands of people on the ground doing just that.”</span></p>
<p class="p1"><span class="s1">But Green did admit that there are still risks. No real estate company has a monopoly.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“If we don’t add value to clients we will disappear like so many other companies in other industries have.” <span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">COUPLES</span></p>
<p class="p1"><span class="s1">For Green, one of the benefits of a career in real estate has been the opportunity to work alongside his wife Irene, who is herself extremely successful in the industry in her own right.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“Irene and I have worked together for nearly 30 years,” he said, “and it certainly creates its own unique challenges. You never stop talking about the business. It’s a really dangerous place to be when your wife technically reports to you, which was the case for a very short period of time.”<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">After all, we all know who the real boss is…</span></p>
<p class="p1"><span class="s1">That said, Green encourages other couples to consider a property career, as long as you can “keep a sense of humor and understand that, while the business is important, the relationship is far more important.”</span></p>
<p class="p1"><span class="s1">WHAT SHOULD FIRST BUYERS DO?</span></p>
<p class="p1"><span class="s1">Now, let’s get to Green’s advice for first-time buyers who are in a tough position because of high prices.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“Government is more attuned to first-home buyers now,” he says. “Study up on the available first-home buyer grants and other incentives available.”</span></p>
<p class="p1"><span class="s1">You should choose a “good property that can be readily resold and has a wide market appeal. What they say about location is very true. If you buy in a good location you will always be fine in the long term.”</span></p>
<p class="p1"><span class="s1">And watch out for interest rates, which are still at historic lows. “Reality says that will change,” advises Green. “You should say, ‘Hey if the rates go up two percent or three percent, will I be OK?’<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“Also factor in starting a family. If you have to live on one income, how will that look?”</span></p>
<p class="p1"><span class="s1">ADVICE FOR INVESTORS</span></p>
<p class="p1"><span class="s1">Green advises property investors to play it safe, too. His preferred investment is a three-bedroom home on a little bit of land and with a garage.</span></p>
<p class="p1"><span class="s1">“They are very easy to rent, and if you need to sell they sell easily. Some investors look for houses that have been split up for multiple revenue streams, but those are harder to sell. They only appeal to other investors. If you are under pressure and need to sell, chances are other investors will be, too.”</span></p>
<p class="p1"><span class="s1">Green made a 38% profit on his first investment home after only two and a half years. It had cost him NZ$29,000. Today, the same home is worth as much as NZ$1.8 million.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Now, about apartments. While Green lives in one for the care-free lifestyle it affords, he doesn’t recommend apartments as an investment.</span></p>
<p class="p1"><span class="s1">“They don’t perform as well in terms of rental return or capital gain. I’d recommend you spend a bit more and buy a three-bedroom house.”</span></p>
<p class="p1"><span class="s1">Green firmly believes property investors today can still leverage a small amount of capital into a large and successful portfolio that eventually lets them live off their earnings. His own sons and a number of their friends are following just this strategy.</span></p>
<p class="p1"><span class="s1">“I think you can do it today,” he said.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">“You have got to be a bit careful because there is more money involved. But as rents and capital gains grow and the mortgage is paid down, you are building wealth. Property will never be cheaper than it is today!”</span></p>
<p><em><strong>Georg Chmiel</strong>, the chairman of Juwai, a Chinese website for buyers of overseas property, was speaking to <strong>Mike Green</strong> in what will be a monthly insight into the leading minds of Australian property experts.</em></p>
<p><em>He has spoken with LJ Hooker agent Bill Malouf about the <a href="https://www.urban.com.au/expert-insights/investing/82193-georg-chmiel-chats-with-bill-malouf" target="_blank">ins and out of the Sydney market</a> and REINSW president Leanne Pilkington about <a href="https://www.urban.com.au/expert-insights/investing/83830-georg-chmiel-chats-with-reinsw-president-leanne-pilkington-on-women-in-real-estate" target="_blank">women in real estate.</a></em></p>
<p><em>He most recently spoke with Melbourne property developer Larry Kestelman about <a href="https://www.urban.com.au/expert-insights/investing/85169-georg-chmiel-chats-with-larry-kestelman-about-developing-your-first-property" target="_blank">developing your first property.</a></em></p>
<p class="p1"><span class="s1"> </span></p>
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po-LsXgBTHBmX

Georg Chmiel chats with Harcourts boss Mike Green on real estate investment secrets

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<p><span>Chinese international real estate website </span>Juwai.com has appointed Carrie Law as chief executive officer and Georg Chmiel as chairman.</p>
<p>Outgoing Chairman Richard Kuo will remain on the Board as a non-executive director.</p>
<p>Carrie Law was most recently a senior international executive with the REA Group and the former general manager of iProperty Group, which the REA Group acquired in February 2016.</p>
<p>Georg Chmiel has served as director and is also chairman of ASX-listed iCar Asia. He was previously managing director of iProperty Group and remained with the company through its integration into the REA Group.</p>
<p>Outgoing Chairman Richard Kuo said Georg and Carrie are the best people to lead the company going forward.</p>
<p>"Both bring a wealth of related experience and success in Asian property technology platform businesses to Juwai.com," he said.</p>
<p>"I don’t believe there is another executive anywhere more capable or more suited to help Juwai.com achieve its strategic goals over the next several years.</p>
<p>"During 2017, the board and executive team have implemented substantial change in the company, including further refining its strategy and business plan, and these two appointments are an essential part of ensuring Juwai.com remains the clear market leader."</p>
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jonathanchancellor-7SQnKwU6yx

Chinese listings portal Juwai.com appoints new CEO and chairman

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<p>While there’s been a marked fall in Chinese residential property buying across Sydney, the depth of the enrichened 1.4 billion Chinese population means there is always likely to be some demand coming our way.</p>
<p>China has 1,340 high net worth individuals and 568 billionaires. Their combined net worth is equivalent to Australia’s GDP.</p>
<div>The Chinese New Year festivities, currently being celebrated, triggers the biggest international travel period of the year for mainlanders.</div>
<div> </div>
<div>In 2017 Australia was the fifth most popular overseas destination for Chinese New Year trips, according to Ctrip, China’s online travel agency.</div>
<div> </div>
<div>Chinese residents who are considering buying real estate often use the holiday week to combine fun and a bit of research.</div>
<div> </div>
<div><span lang="EN-US"><span lang="EN-US">Jon Ellis, the CEO of the <span id="0.5791612715808651">Investorist website which sells off the plan properties to Chinese buyers, calls this occurrence "</span></span>propidays." </span></div>
<div><span lang="EN-US"> </span></div>
<div>Historical data from Realestate.com.au suggests Sydney's eight most popular searched suburbs have been Chatswood and Epping followed by Carlingford, Hornsby, Eastwood, Hurstville, Mosman and Rhodes. Locations with vibrant Asian communities clearly attract the most interest.</div>
<div> </div>
<div>Australia welcomed a record 1.3 million Chinese visitors last year, and many are not just tourists — but potentially students, immigrants and property investors.</div>
<div>  </div>
<div>The Juwai website ranks the top Australian cities for Chinese buyers as Melbourne, then Sydney, Brisbane, Adelaide, and the Gold Coast. </div>
<div> </div>
<div>Jawai's chief executive Carrie Laws expects Chinese buying in 2018 to be on par with the levels of 2017, unless something significant happens to change the Chinese or Australian investing environment.</div>
<div> </div>
<div>"One reason Chinese investors seek out property in Australia if because of our cost of living," she suggest adding it surprises many Australians as China was still regarded as being such a poor country.</div>
<div> </div>
<div>"China's eastern coastal region is just as developed as Australia and its 200 million people live in some of the most expensive cities in the world," she says.</div>
<div> </div>
<div>Buyers looks for their own use, plus their investment potential.</div>
<div> </div>
<div>Australia's reputation as a world class property investment location with particular appeal for Chinese buyers remains unquestioned, but several factors, here and in China, have worked against its popularity.</div>
<div> </div>
<div>These include NSW and federal governments which have increased taxes on foreign property investors.Some developers think the escalation of government changes imposed on foreign property investors risk killing the golden goose.Australia’s Foreign Investment Review Board (FIRB), the Australian Tax Office and immigration officials are now monitoring acquisitions closer than ever to ensure compliance.But divestment order numbers have faded recently.</div>
<div> </div>
<div>The most recent NSW divestment was $210,000, one of 14 forced sales of Australian residential properties in the past year.It took the total number of forced sales to 75 across Australia across many nationalities.A further 139 foreign investors have sold properties during the course of ATO investigations.</div>
<div> </div>
<div>This article was first published in the Saturday Daily Telegraph.</div>
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jchancellor-FAypfDUnLy

Chinese demand will always stay despite marked drop

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<p class="p1">EXPERT OBSERVATION</p>
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<p><span>Juwai's The </span><span>Foreign Buyer Restrictions Report 2018-19 has found that </span><span>the world will see fewer new foreign buyer restrictions imposed in top Chinese property destinations in the year ahead than in any of the prior three years. </span></p>
<p>The Report points out that Canada’s two largest provinces, six of Australia’s eight states and territories, and Australia’s national government have all increased the taxes or restrictions that apply to foreign buyers of real estate over the past two years.</p>
<p>By contrast, in the year to come, only New Zealand is likely to impose new policies targeting foreign buyers. New Zealand’s Overseas Investment Amendment Bill is now under consideration in Parliament.</p>
<p><span>The </span><span>rapid upward trend in Chinese international property investment of the past decade hit the world at the same time as historically low interest rates and population growth were inflating values in popular destination cities. In some places, especially Canada, Australia, and New Zealand, Chinese buyers were blamed for the price increases that objective data suggested was actually due to other factors. </span></p>
<p><span>After </span><span>retreating from an exuberant peak in 2016 of $101.1 billion, Chinese international real estate investment again appears to be on a growth path, although more steady and restrained that what we saw in that golden year. The Chinese government seems comfortable with what it calls </span><span>‘rational’ </span><span>growth in international investment. </span></p>
<p><span>Beijing </span><span>has already telegraphed that it may experiment with further loosening capital controls. China has already resumed two key outbound schemes for investment in overseas securities, which had been suspended to reduce capital outflows. These have no direct impact on foreign property buyers, but do reveal a change of direction </span><span>— </span><span>from tightening to loosening. The Financial Times has reported it expects some of the controls introduced over the past two years to be </span><span>‘quietly relaxed.'</span></p>
<p><span><strong>AUSTRALIA</strong><br></span><span>The </span><span>Reserve Bank of Australia, the Australian Treasury, and a Parliamentary inquiry have all found that foreign buyers do not cause house-price inflation in Australia. The national government and six of the eight states and territories have none-the-less found it hard to resist targeting this group with no voice in the political process. Taxing foreign buyers gives state governments the appearance of taking action without having to tackle stamp </span>duty and the planning mechanisms that are a major cause of the affordability crisis. The top Australian destinations for Chinese buyers are Melbourne, Sydney, Brisbane, Adelaide, and the Gold Coast – followed by Canberra and Perth.</p>
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<p><span><strong>CANADA</strong><br></span><span>Canada </span><span>has seen high bars placed in front of new foreign property buyers over the past two years. But we think that in 2018</span><span>–</span><span>19 it is unlikely that new restrictions or taxes will be imposed. New mortgage regulations have weakened the market, by dampening the primary drivers of higher prices, which is local buyers taking advantage of low interest rates to trade up or buy investment homes. </span></p>
<p><span>The </span><span>most popular Canadian destinations for Chinese buyers are Toronto, Montreal, Vancouver, Calgary, and Ottawa. </span></p>
<p><span><strong>NEW ZEALAND</strong><br></span><span>New </span><span>Zealand is the sole major investment destination in the world that we consider to be very likely to impose new foreign buyer restrictions this year. The Overseas Investment Amendment Bill with its recent amendments would have the advantage of finally putting to an end the political uncertainty that has been ongoing since before the last election. </span></p>
<p><span>The </span><span>most popular destinations in New Zealand for Chinese buyers are Auckland, Christchurch, Wellington, Queenstown, and Hamilton. </span></p>
<p><span><strong>THAILAND</strong><br></span><span>In </span><span>Thailand, new restrictions on foreign homebuying do not appear likely. Weak economic growth and the desire to tap overseas investors for the massive Eastern Economic Corridor project play role. Thai nationals are already protected by rules that prevent foreigners from owning land and more than half of the units in apartment buildings. </span></p>
<p><span>The </span><span>most popular destinations for Chinese property buyers in Thailand are Bangkok, Pattaya, Chiang Mai, Phuket, and Ko Samui. </span></p>
<p><span><strong>UNITED KINGDOM</strong><br></span><span>In </span><span>the UK, the only potential legislation restricting foreign homebuyers that we foresee would address illegal Russian investment, not other buyer groups. We believe anxiety about the potential property-related impact of Brexit, currently weak markets, a dependency on foreign luxury in London buyers, and the </span><span>UK’s </span><span>proud tradition as a financial and investment center will prevent other measures. </span></p>
<p><span>The </span><span>most popular destinations in the UK for Chinese buyers are London, Manchester, Liverpool, Birmingham, and Edinburgh. </span></p>
<p><span><strong>UNITED STATES</strong><br></span><span>The </span><span>United States offers the freest market, the largest market, and the most diverse market of any major investment destination for Chinese property buyers. </span><span>That’s </span><span>why it attracts the greatest amount of investment year after year. We foresee no new restrictions in the US this year, except perhaps for legislation that prevents the acquisition of real estate near critical military bases. The EB-5 visa program is also a perennial candidate for reform. While changes to the investment visa program with the deed affect Chinese nationals, it is not a residential property investment policy. </span></p>
<p><span>The </span><span>top American destinations for Chinese property buying are Seattle, Los Angeles, New York, Houston, and Orlando.</span></p>
<p><span>Carrie Law is the CEO and director of Juwai.com, the No. 1 Chinese international real estate website and the exclusive international real estate partner to Chinese online giant Tencent.</span></p>
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New taxes targeting Chinese property investment set to drop worldwide: Juwai

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<p>Official FIRB data has confirmed a collapse in approvals for foreign investment in Australia’s housing market.</p>
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<p>The Foreign Investment Review Board’s annual report reveals a 67 per cent fall in residential real estate approvals last financial year — down from 40,149 approvals to just 13,198 approvals.</p>
<p>The value of FIRB approvals fell from $72.4 billion to $25.2 billion in fiscal 2017.</p>
<p>The large numbers of residential foreign buyers from the boom of 2012-17 are unlikely to be repeated, a UBS report tips.</p>
<p>During 2016–17, 1,669 residential real estate compliance cases were identified for investigation (down from 2,104 cases in 2015-16). Of these, 1,409 investigations were completed (1,637 in 2015–16), which identified 549 properties acquired in breach of Australia’s foreign investment rules (up from 260). There were 96 residential properties divested by foreign persons (up from 54 in 2015–16) totalling nearly $97 million.</p>
<p>Victoria is the most popular state for residential real estate approvals, followed by New South Wales, with these two states accounting for 73% of all such approvals.</p>
<p>Queensland accounts for 18%, Western Australia for 5%, South Australia for 3%, and the Australian Capital Territory for 1%.</p>
<p>Chinese investors were again the largest source of foreign investment approvals by both value ($38.9 billion) and number (9,714) in 2016–17.  </p>
<p>China continued to be the largest source of foreign investment associated with approvals for residential real estate.</p>
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<p>Carrie Law, CEO and Director of Juwai.com, the No. 1 Chinese international real estate website and the exclusive international real estate partner to Chinese online giant Tencent, said the period saw half years "like night and day" in terms of Chinese investment.</p>
<p>"In the second half of 2016, Chinese investment were investing in Australian real estate at an almost irrational pace.</p>
<p>"It was like money falling from heaven for vendors and developers.</p>
<p>"In early 2017, capital controls, financing restrictions, and foreign buyer taxes reduced Chinese investment to more reasonable levels," Law suggested.</p>
<p> “Since November 2017, we seem to have entered a period of more sustainable long-term growth. Chinese buying enquiries for Australian property in March were 5.7% higher than the month before and in Aprilthey were 22.3% higher.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/30/Chinese%20Top%20Cities%20Juwai.jpg" alt=""> </p>
<p>Law added that China’s capital controls have worked.</p>
<p>Today, China’s foreign reserves are up, the Yuan is stronger, the flow" of money out of the country has been reduced, and fears of a devaluation have virtually disappeared.</p>
<p>"But they have succeeded without having to make it impossible for ordinary Chinese families to buy property overseas."</p>
<p>Recent research reports that a majority of Chinese households intend to increase their offshore investments in the coming two years, with real estate the asset class most favoured by outbound investors.</p>
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<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/30/Chinese%20share%20by%20year%20Juwai.jpg" alt=""> </p>
<p>“The big declines are partly due to lower demand, and mostly due to the changed application fees.”</p>
<p><a href="https://www.propertyobserver.com.au/images/2018/5/30/FIRB%20summary%20Juwai.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/5/30/FIRB%20summary%20Juwai.jpg" alt=""></p>
<p> Considering just commercial real estate investment from all nations, approvals dropped from $50 billion to $44 billion.</p>
<p>The FIRB reports that one reason for the decrease in approvals for commercial property is that under the new China-Australia Free Trade Agreement, Chinese investors no longer need request investment approval before purchasing developed commercial property worth less than $1.094 billion. </p>
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Chinese property purchasing interest in Australia collapses: FIRB data

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<p><span class="Apple-converted-space">Chinese buyers of Australian real estate spent US$6.4 billion less in 2017 than they did in 2016, according to J</span>uwai.com’s Chinese Global Property Investment report.</p>
<div>Chinese purchased US$17.4 billion on Australian real estate in 2017, well down on the 2016 total estimate of US$24 billion.</div>
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<div>New Zealand saw US$1 billion in investment.</div>
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<div>The total Australia and New Zealand investment combined was down 23 percent from 2016.</div>
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<div>Carrie Law, CEO and director of Chinese international real estate website<span class="Apple-converted-space"> </span>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.</div>
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<div>"This year we expect moderate growth, which is in line with Beijing’s goal of managed, rational overseas investment," Law said.</div>
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<div>“Despite the higher stamp duties, Chinese still see Australia as a long-term value," Law noted.</div>
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<div>Click here <a href="https://www.propertyobserver.com.au/images/2018/9/11/region1.jpg" target="_blank">to enlarge.</a>
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<div><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/9/11/region1.jpg" alt=""></div>
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<div>"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.</div>
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<div>"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.</div>
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<div>“In the first half, the most popular Australian cities for Chinese buyers were Melbourne, Sydney, Brisbane, Adelaide, the Gold Coast, Canberra, and Perth.</div>
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<div>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.</div>
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<div>“Sources like KPMG suggest that Chinese commercial real estate investment accounts for one-third of all Chinese corporate direct investment in the country.</div>
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<div>"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.”</div>
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<div>Globally, total Chinese investment in commercial and residential property hit US$119.7 billion, up 16.1% from the US$101.4 billion reported by Juwai in 2016. </div>
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Chinese property purchasing in Australia down 27 percent in 2017: Juwai 

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<p>Former Mirvac CEO Greg Paramor will join the board of directors at Juwai, the No.1 Chinese international property website, as a non-executive director from December.</p>
<p>Paramor has been involved in the real estate and funds management industry for more than 40 years.</p>
<p>He is former CEO of Mirvac Group, past president of both the Property Council of Australia and the Investment Funds Association, a board member of the professional Australian rules football club the Sydney Swans, and the immediate past Chair of LJ Hooker.</p>
<p>Juwai.com board chairman Georg Chmiel said Greg brings to Juwai.com so much expertise in Australian and APAC property, finance, and business that he is a treasure to have on the board.</p>
<p>"We expect Greg to work closely with the existing board members and the executive team on delivering on our vision for Juwai in 2019 and beyond," Chmiel said.</p>
<p>“This year, Juwai.com has delivered rapid growth on its financial and operational metrics."</p>
<p>Paramor said he is delighted to join the board.</p>
<p>“Juwai.com is one of the most exciting real estate technology companies on the landscape today," he said.</p>
<p>“Juwai.com has a promising future, given the size of its addressable market, its lead over potential competitors, and its role in the cross-border property sales process."</p>
<p>In August, Paramor's property fund management and development group, Folkestone, was acquired by Charter Hall Limited for $205 million.</p>
<p>He is a non-executive director at Charter Hall, which is a listed property funds management group with over AU$26 billion under management.</p>
<p>Paramor served as CEO of Mirvac Group between 2004 and 2008. He cofounded Equity Real Estate Partners, Growth Equities Mutual, Paladin Australia and the James Fielding Group. </p>
<p>Paramor was awarded an Officer in the General Division (AO) of the Order of Australia in January 2015 for his distinguished service to the community through executive roles in fields that include breast cancer research, sport, the not-for-profit sector, and property. </p>
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