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Chinese individuals, who have saved a substantial amount of money during the pandemic and now have the freedom to travel internationally, are eagerly heading to Australia with the intention of purchasing property. Local agents have reported a significant increase in inquiries from Chinese buyers, with two to three times the number of inquiries compared to previous years.
According to Daniel Ho, co-founder and group managing director of property-tech firm Juwai IQI, Australia has become the most preferred country for Chinese buyers of overseas real estate this year, a remarkable improvement from its third place ranking in 2021. Ho further stated that buyer inquiries during the first three months of the year have risen by an impressive 127 percent compared to the previous quarter.
There has been a significant surge in Chinese buyers, including both Australian residents and foreign residents, as observed by Peter Li, the general manager of real estate agency Plus Agency in Sydney and Shanghai.
According to agents and analysts, mainland Chinese buyers are actively seeking properties both for investment purposes and, increasingly, for their own occupancy.
Daniel Ho highlighted that Chinese households have accumulated over US$2.6 trillion in additional bank balances in 2022. Their total bank deposits now surpass US$18 trillion, which is larger than China’s entire gross domestic product. Analysts have noted that this amount is 11 percent higher than what would be expected based on pre-pandemic trends.
For Chinese buyers who are seeking higher returns than what they can achieve in their domestic housing or stock markets, the idea of purchasing a home overseas serves as a means of engaging in post-pandemic revenge spending.
Experts believe that apart from the border reopening, another factor contributing to the significant interest is Beijing’s regulation stipulating that Chinese individuals studying in Australia must remain in the country for the entire duration of their degree program in order to be recognized by the Chinese government.
Australia’s proximity to China compared to other investment destinations, along with the minimal time difference between the two countries, makes Australian homes a convenient choice for conducting remote business.
Chinese clients typically express a preference for apartments in prime areas, prestigious houses near Sydney Harbour, and properties in close proximity to private schools for their children’s education.
Jamie Mi, partner and head of international at Kay & Burton, stated that approximately 80 percent of the buyers attending open inspections for high-end properties are from mainland China. Mi further mentioned that the preferred price range for Chinese buyers falls around A$20 million (US$13.3 million). Additionally, there is an increasing number of transactions occurring within the A$40 million to A$60 million range. Beyond that range, the majority of buyers also originate from Asia, although this represents the top segment of the market.
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