Australian residential property is losing Chinese buyer interest
Australia is losing Chinese buyer interest to other parts of the world as tougher government regulations and new tax rules continue to bite, new data shows.
Chinese inquiries in Australian residential property was down 9.7 per cent in the first half of the year compared to the same period in 2016, Chinese international property portal Juwai.com figures reveal.
The median inquiry price also fell from about $394,000 to about $350,000. At the same time, inquiries from around the world — including Thailand, Japan and Malaysia — grew 8.7 per cent.
The data comes as Chinese regulators formalised new guidelines restricting Chinese corporate investment overseas that include real estate being placed on a ‘restricted’ list, which could further compound a drop-off in new developments in the Australian property market.
The Australian head of Juwai.com, Jane Lu, said Chinese buyers were still adjusting to the new regulatory and tax rules in Australia, which remained the second-most popular country in the world for investment. “Their top goals are risk diversification and their children’s education. Australia is a very appealing destination in both these areas,” she said.
“The fact that we still have so much Chinese real estate buying in Australia shows that they still have the money. When you compare the price of similar property in China and Australia, Australia still offers good value.”
The Victorian Government axed the stamp duty concession for off-the-plan investors from July 1 and more than doubled the foreign-buyer stamp duty surcharge from 3 to 7 per cent in 2016. NSW doubled its foreign-buyer surcharge to 8 per cent, while Queensland implemented a 3 per cent surcharge.