Home » Business » Real Estate
Wealthy Chinese to buy US$39.4b of Aussie realty
Print Edition
Wealthy Chinese will pour A$44 billion (US$39.4 billion) into Australian real estate over the next seven years, potentially pushing prices in one of the world’s most expensive housing markets even higher, a study said yesterday.
Investment bank Credit Suisse used data from the Foreign Investment Review Board and other government agencies to estimate the amount of Chinese investment in Australian residential property at more than A$5 billion a year.
“They purchased A$24 billion of Australian housing over the past seven years; we forecast they will purchase A$44 billion over the next seven, to 2020,” it said.
As the Asian powerhouse becomes richer, the ranks of those who could easily afford Australian real estate will swell beyond the current 1.1 million people, with implications for Australian homebuyers, it said.
“While Australia has some of the most unaffordable housing in the world, further strong Chinese demand can push prices even higher,” it said.
“A generation of Australians are being priced out of the property market. Many face a lifetime of renting.”
Australia has one of the most expensive real estate markets in the world on a house price to income ratio, while median house prices in Sydney and Melbourne have risen by more than 30 percent since the global financial crisis.
Chinese investment is welcomed by the Australian government, although it has become a sensitive issue after rural politicians warned against selling valuable farm and mineral land to foreigners.
The Credit Suisse report found that Chinese buyers — some of whom are restricted to buying only new homes — bought 12 percent of new housing nationally per annum, an amount considered insufficient to drive prices up across Australia.
But because they are concentrating their buying in the east coast cities of Sydney and Melbourne — where they are acquiring 18 percent and 14 percent of new supply — they were a much more powerful force in these markets, according to the report.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
