Chinese splash out on property
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”.