The AFR has a little profile today of a guy selling Aussie property to wealthy Chinese:
Australian permanent residency has become a new status symbol for wealthy Chinese and is driving a boon in advisory services for Australian accountants, particularly since Canada closed its significant investor visa scheme a few months ago.
Wealthy Chinese are pouring substantial sums, from $5 million to $50 million, into Australian real estate to guard against potential shocks to the Chinese economy.
…“That diversification piece is a big driver; they want a safe haven for part of their wealth,” said Prosperity Advisers chief executive Allan McKeown.
With respect, Australian real estate is the worst place in the world to put your money as a China hedge. Perhaps it’s a good insurance policy against political interference but if the Chinese economy goes pear-shaped to the extent that wealthy Chinese needs to flee then Australian property is the next domino in line and the dollar will collapse as well.
It’s a sure fire way of radically reducing the balance and purchasing power of your Chinese wealth.
