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

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

Chinese buyers of Australian real estate spent US$6.4 billion less in 2017 than they did in 2016, according to Juwai.com’s Chinese Global Property Investment report.

Chinese purchased US$17.4 billion on Australian real estate in 2017, well down on the 2016 total estimate of US$24 billion.
 
New Zealand saw US$1 billion in investment.
 
The total Australia and New Zealand investment combined was down 23 percent from 2016.
 
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.
 
Click here to enlarge.
 
Chinese property purchasing in Australia down 27 percent in 2017: Juwai
 
"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.”
 
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. 
 
 
 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Chinese Buyers Juwai

Comments

Be the first one to comment on this article
What would you like to say about this project?