Waning Chinese buying interest in Australian property browsing

Waning Chinese buying interest in Australian property browsing
Jonathan ChancellorDecember 7, 2020

Bloomberg has reported on the waning interest Chinese buyers have in Australian property.

It has noted in the first four months of the year, visits by potential buyers to realestate.com.au listings in New South Wales state from China declined 25 percent over the same period last year.

Views of properties in Victoria fell 8.9 percent, Bloomberg noted.

Listings in Western Australia saw the biggest drop of 35 percent, according to the portal, which is the nation’s biggest property website.

After many months where developers have failed to secure sellouts, Lendlease sold all 391 apartments of its third and final stage of its Darling Square apartments on Saturday.

The Sydney CBD sales secured around $460 million during a a four-hour period.

The apartments were priced between $630,000 and $3.5 million through CBRE

Many were "seasoned property buyers" who have some equity behind them.

The absence of foreign buyers was noticeable compared to the first and second stage sellouts in 2014 and 2015, the Australian Financial Review noted.

The first stage sellout in 2014 by Lend Lease secured the off the plan sellout of all 357 Sydney apartments, with revenue estimates as high as $650 million.

About 25 percent of apartments were sold to offshore ­buyers, the proximity to UTS encouraging purchasing by Chinese families.

Set on the doorstep of Darling Harbour, Haymarket, Chinatown and Ultimo, the initial Darling Square prices ranged from $700,000 for a 50-square-metre, one-bedroom ­apartment to $3.5 million for a 130-square-metre sky home.

This is not to say the Chinese buyers aren't there.

At weekend auction a Monomeath Avenue, Canterbury offering with pool on 1021square metres attracted five registered bidders, who pushed the price well over its reserve of $4.8 million to sell at $5.11 million.  

"There was a lot of Chinese interest, in fact all but the winning bidder were Chinese," selling agent Tom Ryan from Jellis Craig told The Australian Financial Review.

"It was almost as if they were a bit reluctant to buy it - the Chinese are still in the market but they don't seem to be as explosive," he said.

 

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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