Chi­nese splash out on prop­erty

Townsville Bulletin - - NEWS -

CHI­NESE buy­ers are ex­pected to splash $ 104.5 bil­lion on in­ter­na­tional prop­erty this year, with about a fifth of that to be sunk into Aus­tralia.

A new Juwai. com re­port states that the fig­ure would be down on the $ 133.7 bil­lion spent last year – a record out­lay that rep­re­sented an 845 per cent in­crease over five years.

But it would still be just the third time off­shore real es­tate in­vest­ment from China ex- ceeded $ 100 bil­lion in a year. The other time was in 2015, when Chi­nese prop­erty buy­ers spent $ 105 bil­lion glob­ally.

The re­port, A Sea of Money, shows Aus­tralia had the sec­ond- largest share of Chi­nese in­vest­ment by dol­lar value in 2016. It came in be­hind the US and ahead of Hong Kong, Canada and Bri­tain.

“With its prox­im­ity and deep com­mer­cial ties to China, ap­peal­ing in­vest­ment mar­kets and a world- lead­ing 26 years with­out a re­ces­sion, Aus­tralia ap­peals to Chi­nese in­vestors, im­mi­grants and stu­dents,” the re­port said.

But Juwai. com chief of op­er­a­tions Sue Jong said Chi­nese in­vest­ment in Aus­tralia had “de­creased markedly” from its 2016 peak due to a com­bi­na­tion of “cap­i­tal con­trols, new for­eign buyer taxes and re­stric­tions on lend­ing”.

SA­MAN­THA LANDY

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