Chinese New Year is bringing a fresh surge of visitors to Australia, and many are intent on buying investment properties.
While there has been some softening of price growth, experts agree that the large number of Asian buyers in Sydney is a positive sign for the Aussie real estate market.
“2017 is looking quite promising,” David Chatterjee, director at Lucror Property, told the Domain Group.
“Australia was always the second preference as a buying destination behind the US but now, since Trump, Australia has become No. 1.”
According to Chatterjee, the number of inquiries is rising by about 25% each day.
Not surprisingly, Sydney is very popular with Chinese investors, though affordability has become a significant hurdle.
Chinese investors are increasingly hampered by Beijing’s stricter money exit clamps, which have reduced the amount of money leaving China for investment havens like Australia. Further complicating the situation are the higher tax rates on overseas buyers.
While these hurdles are creating delays in final buying decisions, many Chinese buyers are able to overcome them.
“I’m not sure 2017 is going to be quite as busy as last year, because it is harder to send over the money, and investment is very slow, and people are taking longer to make decisions. But the big attraction is still our stable economy and regular returns,” said Monika Tu, director of Black Diamondz .
“We know we’re going to be busy from now until at least February 15, as that’s how long the Chinese New Year celebrations go on.”
The hottest properties this Chinese New Year
- Property close to good private schools and universities are the number one choice for many Chinese buyers, as many hope to send their children to Australia to be educated.
- There will be strong demand for new apartments for sale off-the-plan, and apartments close to transportation or retail hubs will be particularly coveted.
- New apartments, especially luxury apartments, in the major CBDs will be sought after by higher-end clients.
- Homes on the waterfront or those with some of kind water view will be in demand as well. Feng shui practitioners favour property next to streams and rivers with gently flowing water as this is considered auspicious.
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