Most popular suburbs for Chinese property buyers
IT was once a popular time to buy Aussie real estate, but a week-long China holiday has produced a surprise from Chinese buyers this year, with data showing their home preferences are changing.
CHINESE property investors have been turning away from Sydney real estate after years of binge buying of local homes.
Last week’s ‘Golden Week’ of celebrations, a popular Chinese holiday when China-based buyers have traditionally visited Australia to purchase new housing en masse, has proved quieter than expected.
Chinese real estate portal Juwai.com’s director Carrie Law said the holiday week, which ended on Sunday, saw fewer transactions than previous years.
It had traditionally been a popular time to buy because it usually brought together Chinese families and allowed them time to make financial decisions together.
“We still (saw) some transactions, but it’s not the free-for-all of past years,” Ms Law said.
“The biggest factor behind (that) is the majority of Chinese buyers in 2018 are purchasing for their own full-time use.”
Countries such as Thailand, Malaysia and Japan were proving more popular because prices were lower and it was easier for Chinese buyers to send money, Ms Law said.
Demand for Australian property from Chinese buyers has also softened in the past three months.
Chinese buyers made 6.3 per cent fewer inquiries than in the previous quarter and 9.2 per cent fewer inquiries than over the same period last year, according to Juwai data.
The drop coincided with a change in Chinese suburb preferences.
The five most popular suburbs for China-based buyers over the past year were the Sydney CBD, Chatswood, Parramatta, Olympic Park and Edmondson Park.
The year before that, north shore suburb Castlecrag was the most popular, followed by the Sydney CBD, Marsden Park, Pyrmont and Ryde.
“The top suburbs list is dominated by areas with the greatest amount of new development … the Foreign Investment Review Board requires offshore buyers to only purchase new property,” Ms Law said.
Head of international for Kay and Burton Jamie Mi said mainland Chinese wanted homes that were ready to live in.
“The ones who are using this holiday to visit and or consider purchasing property are mostly new migrants who need a genuine family home to live in,” Mi said.
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Century 21 real estate agent and former investment banker Joanne Dai said it was getting harder for Chinese buyers to get their money of China and secure Australian visas.
“I just came back from China and the biggest topic there now is immigration … people feel it’s very hard to get into Australia,” Ms Dai said.
“It affects property investment to a certain extent, because if your family can’t come to live with you, you may have to postpone your plans. If your parents were coming, you might buy something for them to live in — but if they can’t come, then there’s no point.”
MOST POPULAR SYDNEY SUBURBS FOR CHINESE BUYERS
4. Olympic Park
5. Edmondson Park
6. Macquarie Park
8. West Ryde
9. Potts Point
Originally published as Chinese buyers’ favourite suburbs