Investors face tight controls

THE great wall of money from China arriving in Queensland will continue but there are concerns cracks are appearing.

Over the past few years, mainland Chinese investors and developers have spent billions on residential and commercial property in Queensland with Gold Coast and Brisbane the main focus.

But there are fears government restrictions will dampen investment in Queensland.

At the start of the year, Chinese Government capital controls made it difficult for mainland developers and small and larger investors to get money out, while Australia unveiled a new foreign resident capital gains withholding payment of 12.5 per cent for properties worth more than $750,000, unless exempted.

This year the Queensland Government unveiled a 1.5 per cent new surcharge on nonresident land taxpayers and Australian banks now have restrictions on foreign lending.

There is also the blowback created when developments are knocked back.

The latest one sees the Chinese-backed ASF Group accusing the Palaszczuk Government of “political games” and was seeking legal advice after its $3 billion casino resort on the Gold Coast was quashed last week.