China cracks down but investors still look to Australia for real estate
As the Chinese government tightens investment regulations, Australia's property market may see a flow-on impact.
Australia has always been an attractive investment opportunity for Asia, and this has caused much discussion as investors put their funds into the Australian property market. The Chinese government has worked to try and curb this outpouring of money from China by increasing regulations on sending money overseas.
It's hard to predict the immediate impact of those changes, but business intelligence agency Basis Point predicts that there's likely to be a slowdown for the market as a whole.
“What I expect is that it will drag down the rate of increase in housing prices in Australia," Basis Point managing director CT Johnson told Australian Broker. "I believe that there will be more pressure on high density, off-the-plan buildings. I expect to see zero impact on the other end of the scale - land and house type developments."
Despite this, there is still expected to be an inundation of Chinese buyers over Chinese New Year who will use the holiday as an opportunity to visit Australia for a holiday and to put some money in the Australian property market. Domain reported Sydney real estate agents are expecting the Year of the Rooster to kick 2017 off with a strong intake of Chinese visitors looking to invest.
“Australia is very appealing to the Asian market, particularly new apartments in areas in the city and around Barangaroo, and especially if the Australian dollar goes down as is forecast," James Pratt, director of auctions for Raine & Horne and James Pratt Auctions, told Domain. "I don’t think any restrictions on lending will affect that market either.”
“Generally speaking, we find that the wealthier buyers are more likely to combine property-hunting with tourism during Chinese New Year,” Charles Pittar, chief executive of juwai.com, told Domain.
Many Sydney agencies are busily organising tours, airport pick-ups and accommodation for incoming potential purchasers.