Chinese investment in Australian real estate reaches $24 billion

07/07/2017 3:25 am

 

Chinese buyers have spent a record $133.7 billion in foreign real estate in 2016. While investment has slowed somewhat in 2017, it’s still projected to top $100 billion by the end of the year according to Chinese property listing website Juwai.com.

Demand in foreign real estate is still strong. However, Australian property investments by Chinese buyers has slowed.

Chief of Operations for Juwai.com Sue Jong revealed they have seen dropping investment flows while staying strong by historic standards. “Capital controls, bank lending standards and foreign buyer taxes have combined to wind back the clock to 2015,” Business Insider Australia quoted her as saying.

Juwai.com determined the total amount of property investments across Australia by using separate figures from the Foreign Investment Review Board. It has found that Chinese investors bought $23.8 billion dollars worth of Australian property last year, a rise from $18.4 billion in 2015.

The impact of tighter capital controls was felt this year. There are reports 80 percent of Chinese investors intended to broaden the terms of settlement on new apartments purchased off the plan.

Credit Suisse has compiled data that showed there were over 1,500 properties purchased by foreign buyers between October 2016 and January 2017. Eighty percent of those buyers were Chinese.

Juwai.com’s report combined international purchases from both retail and corporate investors in China. According to its website, the report is based on Juwai.com’s own data and the information it collected from industry and governments.

 

 

 

Data compiled by Credit Suisse in March showed that there were more than 1,500 properties purchased by foreign owners between October 2016 and January 2017, and 80% of those buyers were Chinese.

The report listed the top 5 countries for Chinese property investment in 2016, as follows:

1. United States
2. Australia
3. Hong Kong
4. Canada
5. United Kingdom