Australian Property Market Boost Thanks To Chinese Wealth
August 26, 2009 - Australia
Chinese buyers are snapping up some of the best luxury properties in Sydney including big homes on the harbor, and new condominium developments.
Real estate brokers and developers said Chinese buyers are most interested in hot properties in the inner-city and by the beach.
They are attracted by new foreign ownership rules, a favorable exchange rate, and the relative stability of the Australian property market.
After the UK and New Zealand, China is third in the lineup of countries that sends immigrants to Australia.
Last financial year, more than 70,000 Chinese arrived in Australia to live permanently, including a steady stream of business migrants and a growing number of students.
In March, Chinese businessman Jiang Mei bought one of the most expensive houses ever sold in Sydney, an inner-city, Point Piper house for $32.4 million.
This set off a buying trend. Chinese buyers paid $14.5 million for a home at Rose Bay, and then a Shanghai couple bought in the same waterfront suburb for $15 million.
Another Chinese couple bought a $5.8 million house, and a Chinese investor bought a smaller, second property for $1 million, with plans to rent out the home.
Raine and Horne, an Australian real estate agency that negotiated the Point Piper house deal, said interest from the Chinese mainland picked up by about 15 percent at the beginning of 2009.
In March, Australia's Foreign Investment Review Board (FIRB) introduced dramatic changes to rules governing foreign buyers, including that all apartments in new projects can be sold to foreigners.
Previously, only half the apartments in a development could be sold to overseas buyers. Student visa holders who live in Australia are no longer limited to spending only $300,000 on a property.
Via China Daily
report, real estate market, Sydney, Chinese