Chinese to buy up big as bans go
Down Under value for money
AUSTRALIA is at the top of shopping lists for Chinese property hunters as the world’s second largest economy moves to loosen travel restrictions from next month as it deals with a surge in Covid-19 cases.
While demand was not expected to return to levels seen at the end of last decade, Australia’s status as a safe destination, growth potential and value for money compared to Shanghai made it attractive.
Black Diamondz director Monika Tu, who specialises in selling real estate to Chinese buyers and before Covid-19 would regularly visit China to meet buyers, said that signs of improved relations between Beijing and Canberra would only further the appeal of Australia.
“With the world so unsettled, right now is the best opportunity for us to market property in Australia with it considered a very safe place and (it has) a favourable investor environment, even though it is expensive,” she said. “Improved relations between China and Australia will give wealthy buyers even more confidence to invest in our property market.”
Meanwhile, new data from Chinese property portal Juwai IQI this month showed that Australia edged out the US and Canada as the most sought-after destination for China-based buyers.
New Zealand was ranked 11th in popularity.
On Monday, Beijing announced that inbound travellers would no longer be required to go into quarantine from January 8. While there had been no roadblocks on Chinese looking to leave the country, the quarantine on the return had suppressed the desire for many to leave.
Ms Tu said those in China with Australian visas such as significant investor visas would be the first to look with next month’s Chinese new year, which was often a popular period for buyers to visit property, shaping as the first window.
“I’m fully booked out with clients in the run-up to Lunar New Year and in late January and into February,” she said. Foreign property investors are only permitted to buy new properties and cannot buy established housing.
They do not require a visa to acquire property, but are required to pay a vacancy fee if their dwelling is not occupied or rented out for more than six months a year.
Ray White chief economist Nerida Conisbee said off-theplan apartment developers would be the big winner from China’s decision to relax its borders.
“I wouldn’t be surprised if they (property marketers) were already planning to make their way to China to drum up interest,” she said.
“We are already seeing a lot of activity in commercial property from Chinese buyers and that should start to transfer over to residential property.” Ms Conisbee said Sydney and Melbourne would be the most soughtafter cities, particularly in pockets that did not see much offshore demand during the pandemic and had a high volume of apartments and student populations.