Chinese buyers benefiting from, helping Australian property market
March 12, 2014 / Written by Rich Harvey
Everyone is looking to get into the Australian housing game at the moment, including foreign buyers.
Credit Suisse recently reported that Chinese real estate buyers are purchasing $5 billion worth of Australian property investment on an annual basis. This accounts for 12 per cent of new housing supply in the country.
Unsurprisingly, Sydney is a hotspot for Chinese buyers, with investors scooping up 18 per cent of new housing supply in the New South Wales capital. Melbourne is also a popular choice, with Chinese buyers accounting for 14 per cent of new housing supply.
All in all, Chinese buyers are expected to purchase $44 billion worth of Australian residential property over the next seven years.
Chinese buyers benefit Aussie economy
Due to rules put in place by the Foreign Investment Review Board, Chinese buyers are only able to purchase brand new properties, not established stock. In this way, greater activity in the foreign buyer market translates to more residential construction, an increase in jobs and general economic prosperity.
Additionally, the increased demand from Chinese buyers results in home values rising at a faster pace, something that benefits all property investors.
Need for buyers advocate growing
While the opportunities for profitable real estate investment are booming in areas like Sydney, Melbourne and Brisbane, Chinese home buyers are at a disadvantage due to being unfamiliar with the local markets.
Fortunately, Sydney buyers agents and their counterparts throughout Australia can assist foreign real estate buyers when it comes to making smart purchase decisions. Buyers agents act as local experts, guiding you through different communities and helping you decide which one might best suit your needs.
Whether you're curious about local amenities, which regions are seeing high demand or any other important information, buyers agents have the intimate knowledge necessary to simplify the purchase process.