Chinese tourists are using their holidays in Australia to shop for ‘cheap’ properties – as their city of choice is revealed
- Chinese buyers are returning to the Australian property market, a report shows
- They are preferring Melbourne, Sydney, Brisbane and Perth for investments
- Chinese investors are gaining from a decline in the value of the Australian dollar
Chinese tourists are using their holidays in Australia to scout out potential properties.
About 1.2million Chinese tourists visit Australia every year and as many as a quarter of them are looking to buy a property Down Under, according to a report by property portal Juawi.
A total of 27 per cent of Chinese residents said they would be looking for potential properties on their next overseas trip.
Overwhelmingly, Chinese investors are interested in purchasing property in Melbourne.
But interest in Hobart, Brisbane and Canberra is growing fast.
Chinese tourists are using their holidays in Australia to scout out potential properties
About 1.2million Chinese tourists visit Australia every year and as many as a quarter of them are looking to buy a property Down Under, according to a report by property portal Juawi
‘Chinese buyers make 83 per cent more enquiries about acquiring Melbourne property than they do Sydney,’ the report Chinese Australian Dwelling Investment Tracker read.
The report showed Brisbane was fast emerging as a ‘real alternative’ to Melbourne and Sydney.
It said more Chinese buyers are returning to the property market after a demand from them hit its ‘absolute bottom’ in 2017.
Top Australian Cities for Chinese Buyers (2019 Q1)
Melbourne: 43.8 per cent
Sydney: 23.9 per cent
Brisbane: 10.1 per cent
Perth: 6.1 per cent
Adelaide: 6.1 per cent
Gold Coast: 3.7 per cent
Canberra: 3.6 per cent
Hobart: 2.6 per cent
‘Chinese buyer enquiries have posted two consecutive quarters of year-on-year growth for the first time since 2016,’ it said.
‘In the first quarter, Chinese demand was up 40 per cent compared to a year earlier. That followed a 54 per cent gain in the fourth quarter.’
The Australian dollar has also fallen against the Chinese Yuan making now an even more attractive time to buy.
‘Since last July, the Aussie has lost 11.1 per cent versus the Yuan,’ it said.
‘Looking at the exchange rate over a longer term, the Australian dollar today is worth less against the Chinese Yuan that it has been at any point in the past 10 years.’
The report said the decline in the value of the Australian dollar has counterbalanced the additional stamp duties that were imposed by various Australian states on foreign residential buyers in recent years.
‘When the overhang of excess inventory is absorbed and lower prices entice buyers back into the market, we expect Chinese buyer sentiment to turn, as well,’ the report said.
‘Chinese buyers are likely to be interested in investing in the climbing market.’
The Australian dollar has also fallen against the Chinese Yuan making now an even more attractive time to buy