How Chinese New Year Affects Property Sales in Australia
By Paul Westchurch @ Real Estate Daily
February 23, 2018

Chinese New Year is one of the biggest times for Chinese citizens to travel overseas. Many take advantage of this time to scout out new places to live, with Australia being one of the most popular locations. What’s the appeal? Australia’s beautiful coastlines and significantly smaller population make it a welcome break from crowded Chinese cities.

Add to this appeal the massive buying power that China holds and you have a recipe for property sales. China alone has approximately 1,000 billionaires, which makes it a key market for Australian builders and real estate agents. One that’s expected to boost Australian property sales in 2018.

Key Takeaways

  • Australia received 1.3 million Chinese visitors in 2017.
  • The high number of overseas buyers has prompted the Foreign Invest Review Board (FIRB) to review transactions closer than ever to ensure they’re compliant.
  • China has over 1,000 billionaires, making it an investment powerhouse.

Excerpt

Historical data from Realestate.com.au suggests Sydney’s eight most popular searched suburbs have been Chatswood and Epping followed by Carlingford, Hornsby, Eastwood, Hurstville, Mosman, and Rhodes. Locations with vibrant Asian communities clearly attract the most interest.

Australia welcomed a record 1.3 million Chinese visitors last year, and many are not just tourists — but potentially students, immigrants and property investors.

The Juwai website ranks the top Australian cities for Chinese buyers as Melbourne, then Sydney, Brisbane, Adelaide, and the Gold Coast.

Jawai’s chief executive Carrie Laws expects Chinese buying in 2018 to be on par with the levels of 2017 unless something significant happens to change the Chinese or Australian investing environment.

Australia’s reputation as a world-class property investment location with particular appeal for Chinese buyers remains unquestioned, but several factors, here and in China, have worked against its popularity.

These include NSW and federal governments which have increased taxes on foreign property investors. Some developers think the escalation of government changes imposed on foreign property investors risk killing the golden goose.

View the original article at News.com.au