Chinese property investment tumbles by one third

Via MPA:

While Asia and Europe enjoyed the highest Chinese investment growth in 2017, Australia and New Zealand experienced significant drops, according to Juwai.com’s Chinese Global Property Investment Report. The report provides an estimate of actual Chinese investments in Australian residential and commercial property.

According to the report, total Chinese property investment in the two countries fell by 23.2%, from $23.9bn to $18.4bn. Although Australia recorded the largest share of the decline, Chinese investment in the country still remains substantial. Chinese purchases of residential and commercial properties in Australia dropped by 26.8%, from $24bn to $17.4bn.

In a statement, Juwai.com CEO and director Carrie Law said their estimate of Chinese investment in Australian property is based on industry data that helped them calculate the roughly $100bn-worth of new dwelling sales in the country last year.

“About one-quarter of those went to foreign buyers, and that Chinese buyers accounted for about three-quarters of foreign buyer spending. That yields about $19.4bn (US$14.1 billion) in estimated Chinese residential investment,” Law said.

Law attributes last year’s reduced Chinese investment to capital controls, restrictions on bank financing to offshore buyers, and to new foreign buyer taxes and restrictions. She expects moderate growth this year, “which is in line with Beijing’s goal of managed, rational overseas investment”.

Chinese buyers still consider Australia to have long-term value despite the higher stamp duties, Law added. The majority of Juwai’s residential buyers are purchasing properties in the country because they have kids studying or working there, or because it’s a place they plan to visit regularly or retire in.

“Australia offers a stable environment, safety, quality educational institutions, and high quality of life. Both Sydney and Melbourne rank in the top five most liveable cities in the world,” Law said

The report also showed that other than the U.S., Hong Kong, and Japan, Australia was China’s top destination for commercial property investment. Overall, Chinese international property investment rose to $65.9bn, with Australia, U.S., Hong Kong, and Malaysia receiving the most investment.

“Sources like KPMG suggest that Chinese commercial real estate investment accounts for one-third of all Chinese corporate direct investment in the country. Political tensions between the two countries have a greater impact in creating uncertainty with corporate commercial real estate investors than they do with individual investors buying residential property for their own use,” Law said.

According to the NAB survey it is closer to half:

Comments

    • Gavin:

      I saved a copy of my second reply, due to the swear words, I’ve removed the bad language and toned it down, but I don’t appreciate my OP post being removed by someone. The Chinese DID and HAVE influenced our market and this very website (thank you) and it’s members (even more!) have exposed this with many pieces of very damning evidence.

      Original response to the guy claiming the Chinese didn’t influence our housing prices…::
      _________________________________________________________________
      _________________________________________________________________

      Don’t push some spruiker article at me. There’s been enough evidence time and time and time again, on this site, in the news, at the pub, on reddit, at the auctions that CLEARLY demonstrate, there has been a massive demographic shift in both cities.

      https://i.pinimg.com/originals/45/5e/e1/455ee16dde921c93fc4b6aa33711da9d.gif
      (The one for Melbourne is even worse)

      My girlfriend worked a year in the industry here in Melbourne, in 2 companies. She OUTRIGHT was told, by 1 degree of separation from coworkers of literal cases of cash being brought to openings of new properties. Straight out of Oceans 11. There was literally an armored van at one of them recently in south Sydney.

      Melbourne has had a massive influx of young, attractive Chinese women driving 150 to 300k cars in my neighbourhood, it’s gone up 5 fold in 5 years. You can see the empty properties on any casual drive to Box Hill.

      There’s plenty of photos of auctions, where /literally/ 90% of the bidders are Chinese. My aunt sold her place 3 years ago, 90% Chinese at the auction.

      Don’t bring these virtue signal terrible articles here, take stuff away, we’re sick of it. They did, without any damn question of a doubt, SERIOUSLY influence the property market in this country and they should NOT have been allowed to invest here, without damn citizenship.

      EDIT:
      and the author of your terrible article.

      “Michael Yardney is a director of Metropole Property Strategists, which creates wealth for its clients through independent, unbiased property advice and advocacy.”

      So he’s trying to make his fellow customers feel better about damn the locals.
      Screw Michael Yardney.

  1. I can understand the moderation of my second reply to the guy spruiking Michael Yardney articles, but the deletion of my initial post? Really?