Chinese investment in Australian property remains strong

Australia’s lifestyle, environment and potential return are the top reasons why Chinese investors invest in property here. Chinese investment into Australian property has more than quadrupled in the past five years.

China has recently overtaken the United States as the largest foreign property investor in Australia, with $12.4 billion being spent on the Australian property market.

It’s a huge boost to the Australian economy, with Chinese buyers helping drive the real estate sector with more construction of new homes, more jobs and more economic well being. Sydney and Melbourne are the main focus markets in Australia for new developments; attracting Chinese investors.

The larger Chinese cities have some of the most expensive residential real estate in the world, with little return on investment. Property prices in Beijing can be more than 22 times the average annual wage.

Typical housing options in Chinese cities are small, cramped, shared, run down and expensive, with the average price of an apartment in Hong Kong being similar to one in Sydney. In Australia, Chinese investors can afford a bigger property with a view, perhaps waterfront and close to decent universities and schools, with good weather and little pollution. Money can’t buy that type of living in China.

Ultimately, like any investor, Chinese investors want to get more value for their money, and the wealthy Chinese investor that already owns a lot of properties in China will want to expand their portfolio. The distance doesn’t deter them, with many Chinese buyers often buying property without seeing it themselves, putting their trust in their agent.

Whether it’s a middle class family, a wealthy individual, or a property developer, the Chinese are realising the strong value that the Australian property market can afford them.

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