JUWAI predicts Chinese Investors want to buy Australian Property … are they seeking cheaper prices?
BECAUSE Chinese real estate firm Juwai IQI said they expected foreign buyers to Australia’s capital city markets where prices are expected to stagnate or fall.
EXTRACT from Juwai website:
‘39-year-old Boris Mei works in the Chinese export industry. He is one of the more and more Chinese people who want to buy real estate overseas.
He said: “I am thinking of Los Angeles or Melbourne because we have relatives in both cities. We hope that our 14-year-old daughter can study in these two universities and experience the overseas lifestyle. In the future, we may emigrate the whole family.’
FURTHER, that currently inquiries from China are down 14%, and that demand from local Australian buyers has fallen further.
Marketers are pushing more buyers to look at Australia instead of the U.S. and the U.K.
Juwai and others continue to peddle the myth that these buyers are only permitted to buy ‘new homes’ under foreign investment regulations … however once they gain a Permanent Resident (PR) Visa following real estate purchase, they can buy established homes too!
And/or another loophole while on a Temp Visa if they buy an established home (allowed for the time of the Temp. Visa) they can demolish it for a ‘new home’.
It is reported that auction clearance rates have halved to 33.8 per cent in the week to 19 April due to the shutdown of in-person auctions on 24 March, and the closure of our border to Chinese tourists; enacted on 1 February.
However, the property sector has clout and the restrictions are to be eased this Saturday 9 May in NSW.
Prof. James Laurenceson (the Acting Director of the Australia-China Relations Institute at the U.T.S. ) (ACRI) said ‘cashed-up’ (is that ‘hot money’?) property investors obviously are likely to maintain their interest in Australian apartments. Why wouldn’t they with a PR Visa and medicare benefits following purchase … and the ability to bring out the whole family through a range of Visas including: Family, Student, Parent, Grandparent and Guardian?
To top it off he said that the Chinese economy would better resist the CoronaVirus … giving the Chinese more money to spend overseas, and that …
-China’s wealth has not disappeared
-no property price collapse in China
-one common form of asset for Ch households
With friends like the FIRB and the ACRI what more do they need?
With the oversupply of off the plan apartments perhaps developers are pushing for the floodgates to be opened to offload their defective dwellings to the money launderers?
LET’s hope in the process that Australia is not beset with a second deadly wave of Covid-19?
WHY the push to fast-track more development for Chinese buyers when there is an urgent need for social housing for Australians? 200,000 Social Housing dwellings!
Perhaps it is too late for the FIRB to keep its guard up? Time for it to go!
However, Martin North from Digital Finance Analytics contrary to Laurencenson said the Chinese economy is not strong. And that China is encouraging its people to invest in China …
Read more: ‘Chinese investors are waiting to snap up Australian property at cheap prices once travel restrictions are lifted’