From Domain today comes fresh insight into how Australia’s real estate agents are offloading homes to the Chinese, some of whom are likely non-residents:
Agents are posting an increasing number of properties on Chinese social-media platforms such as WeChat before advertising them to the general market, meaning many of them are being snapped up behind closed doors…
Jellis Craig agent Greg Bowring said he had sold a number of properties to buyers who saw his posts on the free messaging and calling app, including an off-market sale at 31 Stott Street in Box Hill South…
“There has been a couple of ones that are strictly undisclosed…including a big $4 million sale in central Balwyn”…
Lucy Jiang of Marshall White, who originally downloaded the app to stay connected with her family in Beijing, said more people were now using the app for business purposes.
According to Wikipedia, WeChat has around 440 million users in China and around 70 million outside of China. So it is an efficient platform for those wishing to quietly sell their homes to a foreign investor, which is of course illegal when it comes to existing dwellings.
Let’s hope the ATO begins actively monitoring these types of off-market transactions, and takes appropriate action against foreigners and real estate agents that contravene the foreign ownership rules.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
