Chinese investment in Australian real estate doubles
May 10, 2016 - Australia
Foreign investment in Australian real estate has jumped by three-quarters in 2014/15, to a record $60.75billion.
At the same time, there was a 60% year-on-year rise in approvals from foreigners to buy residential properties to 37,347 compared with 23,428 in 2013-14, according to the 2014/15 Foreign Investment Review Board (FIRB) Annual Report.
The increased spend means that it is estimated that around a quarter of new developments in Australia are being funded by overseas investors, with most in Melbourne, Sydney and Brisbane, the newly-published report states.
The totals in the detailed 48-page report show that foreign residential property approvals in Australia has more than tripled since 2012-13.
The figures only run up to mid-2015 and so do not take into account new foreign buyer application fees and taxes that have since been introduced.
“The United States remains Australia’s dominant inward investor country, accounting for around 23.7 per cent of the total stock of foreign direct investment as at the end of 2014.
“China ($46.6billion) remains the largest source country for approved proposed investment in 2014-15 although this growth remains from a low base. China is the fifth largest source country in respect of the stock of foreign direct investment, accounting for around 4.4 per cent of the total stock.”
Approved Chinese investment in real estate doubled to AU$24billion, says the report.
Trends, Investment property, foreign investors