According to an analysis by Juwai IQI, foreign buyers of real estate, particularly those from China, view Australia as an "attractive" and "safe" country for investment.
Georg Chmiel, executive president of Juwai IQI, said that Chinese buyers are increasingly investigating the Australian real estate market. In fact, the interest of Chinese buyers doubled in April.
"Australia was already appealing as a safe country where your investments are protected. Now the country appears to have handled the pandemic well. This makes it even more attractive to foreign buyers," he says.
Chmiel said the first three months of the current year were difficult, affected by the restrictions put in place in March.
"Travel restrictions and social isolation measures have made this difficult. Now the Australian market is starting to open slowly. This is a positive development which will gradually facilitate marketing and closing sales, "he said.
Read also: Experts' perspectives: changes in the real estate market to wait for this decade
Of all the real estate markets in Australia, Melbourne has remained the number one city for foreign buyers. Chmiel said Chinese buyers often opt for newly built units and homes, which range in value from $ 610,000 to $ 1 million.
"They prefer houses near good schools and universities and close to services, public transportation and shops," he said.
The Foreign Investment Review Board recently published its annual report for 2018-2019, which showed a decline in Chinese real estate investments in Australia. During the year, investments by Chinese buyers reached $ 6.1 billion, the lowest level since 2012-2013.
"Our buyer survey data shows that Chinese investment in Australian real estate fell for a long time, from late 2016 to the first half of 2019. This represents nearly three years of decline in Chinese purchases. The tide may have turned because Chinese buyers appear to have returned since the second half of last year, "said Chmiel.
Chmiel said that the factors limiting the activity of foreign investors have started to ease.
"Non-bank lenders are once again ready to finance Asian buyers. The 8% stamp duty doesn't look that big compared to the 20% taxes in places like Singapore and Vancouver. And, after years of globalization, the Chinese have accumulated more wealth abroad than they can freely invest outside of China. "
Top suburbs:
keperra
,
dulwich hill
,
queens park
,
Narara
,
windale
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