In 2015-2016, Australia’s Foreign Investment Review Board gave foreigners approval to buy property valued at $72.4 billion, an increase of over 20% on the $60 billion in the preceding year. Chinese buyers made up almost 80% of those sales. According to investment bank Credit Suisse, the Australian market is so attractive to the Chinese buyerbecause it is not only cheaper but also more secure. The medium 2-bedroom apartment in Shanghai sells for around $900,000 which is 25% more than itsequivalent in Sydney. Interesting to note, it takes around 12 years’ average income to buy the median Sydney property, compared to 30 years income to buy the similar property in China’s top-tier cities. However, the Federal government has recently announced new measures to crack down on foreignbuyers.
There is now a levy of $5,000 a year on homes that are bought but not occupied for six monthsor more. They have also limited foreign buyers to 50% of the apartments in any new development. Will that deter Chinese buyers? Most experts think it will have limited impact.Locally, we have seen a lot of Asian investment in the redevelopment areas around our Marsden Parkoffice. Many have also bought in the fringe suburbs such as Berkshire Park, Llandilo and Londonderry,primarily for “landbanking”.
Our Chinese sales consultant Ken Chau, has been involved with many sales in that area and has a large Chinese clientele. Ken can speak 4 languages and is an important part of our selling team. He offers oursellers an extra advantage of being able to access Chinese buyers through his contacts and website.To sell your property and have it promoted to a wide range of overseas buyers, please call us today on4578 234.