In the second quarter of last year, mainland China was the largest source of investment for approved residential property investment proposals. Both the number and value of transactions rose sharply compared with the previous quarter, according to data published by Australia’s Treasury last November.
Moreover, Perth benefits from higher affordability, with median home values about 37 per cent lower than in Sydney, offering more scope for capital appreciation. “Each capital city is at a different point in the cycle,” said Darien Bradshaw, head of residential development sales, Australia, at JLL in Singapore.
Chinese buyers are not the cause of Australia’s housing woes
Chinese buyers are not the cause of Australia’s housing woes
The best way to address the housing affordability crisis is to make it easier to build new homes. To its credit, the government has taken steps to facilitate foreign investment in the BTR sector. While this is not going to move the needle on supply, it should help attract more overseas investment in rental housing. Australia’s appeal to Asian property buyers is unlikely to wane.
Nicholas Spiro is a partner at Lauressa Advisory