Is a new wave of Chinese money about to sweep over Australian property?

China’s great gambit of dumping the yuan in its trade war with the US is throwing up an interesting question today. Will it trigger a renewed round of capital flight out of China?

Recall that in 2013/14, as the Chinese economy slowed, it suddenly did an about face on what had been a very steady and long term appreciation of the yuan. These two factors unleashed a tsunami of Chinese capital upon the world, especially in real estate markets:

Australia saw more than its fair share of the money given its open borders approach to foreign investment in realty, reputation as a safe haven, large Chinese community and foreign student trade. Indeed, although it was widely deemed as “racist” to contemplate the inflows, they were abundant enough to have a very material impact on property prices for anyone unencumbered by wowserish blinkers.