Why Chinese are investing in the Australian Real Estate Market

Chinese investors invested billions in the Australian real estate market in 2015. These investors are therefore blamed to have escalated the price of real estate in Australia. This article discusses the reasons for Chinese investors’ interest in the Australian market.

Although the investments of the Chinese investors in the Australian real estate market are high, the Chinese investments in residential property have dropped in the recent years. With the increasing restrictions on Chinese private ownership in Australia, the Australian real estate industry has experienced a minor decline. The Australian government has put several filters in the process of selling the property to Chinese investors. This might be the reason why the Chinese investors find the Australian market less attractive.

However, there are several potential reasons behind Chinese investors’ interest in the Australian market. These reasons are stated below.

Chinese Millionaires

China is one of eighteen countries having the highest number of millionaires. China has high net worth which is equivalent to Australia’s GDP. This is the reason why the Chinese investors show interest in Australian real estate. Australia is a lucrative spot for investment and future profit. The Chinese investors want to establish a strong foothold in the Australian market to preserve their wealth and prosperity. The Chinese investors have legitimate as well as hidden income and wealth. To multiply their wealth, they prefer overseas investment. Real estate investment is the best way to preserve both genuine and hidden wealth.

Australians Prefer Selling or Leasing Property

The temporary Australian residents need to sell their houses after leaving the country. The foreign residents are allowed to either retain their properties and rent or sell them. Often, Australians choose to move out of their old dwelling place and construct a new one. In such cases, the availability of property increases. The Chinese investors real estate interest is boosted by the availability of property in Australia. The investor’s investment in residential buildings has increased by leaps and bounds in the recent past.

Australia’s Financial Structure

Australia’s financial condition can be considered as one of the major factors behind the Chinese investor’s interest. Australia is financially stable, and the stability has helped the nation to reach the pinnacle of success in different fields. In comparison to China, Australia’s economy is reliable and profitable. Therefore, the investors from China prefer to invest in the Australian economy with the desire to stabilise the inflow of their wealth. The prosperity of Australia attracts the attention of foreign investors. The rich investors in China are eager to invest in overseas markets to stabilise the flow of their income.

Investing in the Australian market can lead the investors to have high capital gains rates with low deposit requirements.

Desirable Location

Australia is an attractive place, and people desire to settle there. Easy availability of property gives the real estate industry in Australia a boost. Therefore, the Chinese investors want to invest in Australian property.