Chinese purchases of Australian property have dropped significantly in the past month, according to local property agents, as buyers struggle to shift money out of the country following Beijing’s move to tighten capital controls.
One Chinese property agent, who focuses on the Australian market but asked not to be named, said the latest effort by the central government to avoid large capital outflows was having a “significant impact” on his business.
“It has affected 70 to 80 per cent of current transactions and some have already been suspended,” he said.
…Chinese banks have been told to set up a watch list for unusual transactions, according to one bank manager, who also asked not to be named because he was not authorised to speak about the policy.
From the AFR:
Australia’s new significant investor visa program is another choke point with only seven applications since the new rules came in on July 1 stipulating productive investment.
Expect this to continue as the yuan continues to devalue against the greenback as it rises and China fights to prevent a disastrous capital outpouring.
A sluggish Spring property season indeed.
