CHINESE CHOOSES MELBOURNE AS NO. 1 TARGET FOR PROPERTY “BARGAINS” IN 2019
- Posted By Prince Lakshman
Melbourne has been tipped to remain Australia’s no.1 city for Chinese property buyers in 2019 according to a report published by leading international property website Juwai.com.
Foreign buyers have expressed their desire to avail a bargain while the property market is soft. This and the fact that the Chinese are getting richer and have no proper investment opportunities in their own country.
Other factors might be the ongoing trade war between China and the US, prompting investors to transfer their investments to Australia. Yuan has also weakened, making purchases in other countries more expensive.
Although Chinese investors are eyeing Australian properties, actual buying activity has dropped and is forecast to remain “flat” in 2019, according to the report.
The demand was being held back by factors including foreign buyer taxes, difficulties obtaining finance and capital controls in their home country.
Carrie Law, Juawei.com chief executive said that a substantial change in any of these factors could lead to a corresponding increase in buyer activity.
However, Juawei.com expects Australia to remain the most prolific offshore purchases, and Melbourne to continue to be the most sought-after city.
“According to Foreign Investment Review Board data, (Victoria) receives about $4 of foreign real estate investment for every $3 that goes to New South Wales and for every $2 that go to Queensland,” Ms Law said.
“Melbourne retains clear advantages over Sydney in terms of lifestyle, prices, and also a foreign buyer stamp duty that, at 7 per cent, is one point lower than the NSW equivalent.”
The most popular suburbs among Juawei.com’s users include Point Cook, Doncaster, Southbank and Toorak.
Geelong was also previously named among the regional cities the Chinese buyers are interested in.
Nerida Conisbee, Realestate.com.au chief economist, echoed what Ms Law said about the country’s state of offshore buying, stating that the struggle to obtain financing and extra taxes are major impediments foreign buyers face when trying to secure Australian properties.
She said those who were househunting in Melbourne were focusing on university suburbs like Carlton and Clayton, and areas offering house and land packages like Point Cook.