China boasts some of the wealthiest people on the planet with the world’s largest upper-middle-class population Chinese now also have their eyes set on international property.
With $24 billion spent in 2015, China is now Australia’s largest foreign investor. The proposed investment pipeline is at $46.6 billion in future projects. In 2013-14 China’s intended investment was $12.4 billion, according to FIRB’s past annual report.
This means Chinese investment in Australian real estate has doubled over 12 months and showing no signs of slowing down.
*Top 5 International Real Estate Investments.
1st: China $24 B
2nd: USA: $7.1 B
3rd: Singapore: $3.8 B
4th: Malaysia $3.4 B
5th: Korea: $2.5 B.
Property tax is less here; the great Australian lifestyle is appealing, our property prices are affordable and visa requirements are welcoming.
Under current law, foreigners cannot buy established properties but can buy lands and newly built properties. Australia has increased its tax on property investments by foreigners in 2015 in an attempt to discourage foreign investors from buying houses in Australia.
What is China doing about it?
China is forcing citizens to spend less abroad to curb the decline in economic growth. The government has decided to limit capital leaving the country. And Chinese banks have responded, starting to block some foreign transactions.
From million-dollar trophy homes, modest apartments to regional farm land China investment is here to stay.
By Mark Ribarsky [/vc_column_text]