Chinese investment in Australian property exceeds $1.6 billion in just six months
2023-03-21
March 20, 2023 propertyupdate.com.au
China has emerged as the top foreign house buyer in Australia, dominating the residential real estate investment sector with $1.6 billion in approved purchases in the second half of last year.
Official figures from the Foreign Investment Review Board (FIRB) revealed that China was the largest source of investment in residential real estate, with $600 million approved in the December quarter alone.
The next largest sources of residential investment were Hong Kong and Vietnam, each receiving approvals worth $100 million.
The surge in Chinese buyers is expected to continue following the reopening of borders in January and the Chinese government’s decision to mandate face-to-face teaching for foreign-enrolled students.
The demand for Australian residential property is likely to grow further as pandemic-related uncertainty subsides and borders remain open.
Real estate operators catering to the Chinese market have reported a surge in demand for Australian property.
Juwai IQI co-founder Daniel Ho noted that Australia had been the most popular country for Chinese homebuyers in 2021 and so far in 2022, based on inquiry levels through its platform.
Meanwhile, Fiona Yang, executive partner at project marketing agency Plus Agency, reported a five-fold increase in Chinese buyers and a strong desire to buy quickly.
The FIRB figures also revealed that commercial real estate was the largest target sector for the proposed investment, with approvals worth $19.3 billion for the December quarter.
China was the second-largest source of investment overall, with $6.7 billion approved across all sectors, while US investors led the way with $16.7 billion.
Despite the significant investment in Australian property by foreign buyers, the total residential approvals for the December quarter fell to $1.4 billion from $2.9 billion in the previous quarter.
This suggests that Australia’s housing market correction may have impacted foreign investment figures.
However, the year-to-date total of $4.3 billion is still more than half the total achieved in 2021-22, at $7.6 billion, and 2020-21, at $5.7 billion, indicating that the demand for Australian property remains robust.
China has emerged as the top foreign house buyer in Australia, dominating the residential real estate investment sector with $1.6 billion in approved purchases in the second half of last year.
Official figures from the Foreign Investment Review Board (FIRB) revealed that China was the largest source of investment in residential real estate, with $600 million approved in the December quarter alone.
The next largest sources of residential investment were Hong Kong and Vietnam, each receiving approvals worth $100 million.
The surge in Chinese buyers is expected to continue following the reopening of borders in January and the Chinese government’s decision to mandate face-to-face teaching for foreign-enrolled students.
The demand for Australian residential property is likely to grow further as pandemic-related uncertainty subsides and borders remain open.
Real estate operators catering to the Chinese market have reported a surge in demand for Australian property.
Juwai IQI co-founder Daniel Ho noted that Australia had been the most popular country for Chinese homebuyers in 2021 and so far in 2022, based on inquiry levels through its platform.
Meanwhile, Fiona Yang, executive partner at project marketing agency Plus Agency, reported a five-fold increase in Chinese buyers and a strong desire to buy quickly.
The FIRB figures also revealed that commercial real estate was the largest target sector for the proposed investment, with approvals worth $19.3 billion for the December quarter.
China was the second-largest source of investment overall, with $6.7 billion approved across all sectors, while US investors led the way with $16.7 billion.
Despite the significant investment in Australian property by foreign buyers, the total residential approvals for the December quarter fell to $1.4 billion from $2.9 billion in the previous quarter.
This suggests that Australia’s housing market correction may have impacted foreign investment figures.
However, the year-to-date total of $4.3 billion is still more than half the total achieved in 2021-22, at $7.6 billion, and 2020-21, at $5.7 billion, indicating that the demand for Australian property remains robust.
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