Sydney Harbour Photo: Wikimedia Commons
Chinese buyers have been increasingly attracted to the property market Down Under, driven in part by their own slowing economy. According to CBRE, capital flows from China to Australia’s commercial property climbed to $3.4 billion for deals over $10 million, more than triple than the volume recorded during the same period in 2014.
Residential investment has also risen, with foreign buyers responsible for around 30 per cent of apartment sales, according to the National Australia bank.
Alan Oster, group chief economist at the lender, predicts that overseas investors will account for around 60 per cent of the city’s central apartment market.
CBRE predicts that the trend will continue, as investors turn to Australia to diversify their portfolio.
“We are seeing the continued demand for outbound investment among the Chinese. Within the Asia Pacific, Australia is definitely one of the top destinations,” Ada Choi, senior director of research at CBRE, tells the SCMP .
The relative affordability is one important factor, notes Oster, with the currency making the country’s real estate effectively 30 per cent cheaper than it was two years ago.