Did you know that foreign buyers are returning to the Australian property market, with fears they could drive up the cost of homes for Aussies already struggling to buy a home?
China was the largest source of investment in Australian residential real estate, with $1.6 billion invested in the six months to the end of December last year, according to official figures.
The Chinese government has also instructed its students to return to foreign campuses for face-to-face teaching. Chinese property experts believe that Australia is the most popular destination for people from China who are after foreign property. And one leading expert has warned that the increase in foreign property purchases could lead to trouble for Aussies in the long-term.
John Kehoe, Economics editor of the Financial Review, told Today that prices could rise because of the foreign investment.
'What it means for property prices, I think in the short term, they're going to be more determined by interest rates and we expect them to continue to fall down.
'But over time, when you've got more people buying from abroad, more people coming here from immigration, that will support property prices upwardly in the medium term.'
Juwai IQI co-founder Daniel Ho believes Australia is the most popular country for Chinese homebuyers.
'In January, Chinese buyer inquiries for Australian real estate surged by 24 per cent compared to December, due to the announcement that borders would be reopening,' he said.
'Total foreign investment in Australian real estate fell significantly this quarter. Chinese buyers remained the most significant, with $600 million of approved investment, even though that was down $1 billion in Q1.
'When you include the city of Hong Kong in the Chinese total, Chinese investment this quarter accounted for $700 million of Australian property.
'At this rate, China will invest an estimated $3.2 billion in Australian residential real estate this year, which would be up from $2.4 billion in 2021-22. With the inclusion of Hong Kong, China would invest $3.8 billion, which would be up from $3 billion last year.
'In 2022 and so far this year, Australia is the most popular country for Chinese homebuyers, for the first time ever. That's according to Juwai IQI Chinese buyer enquiries.
'In January, Chinese buyer enquiries for Australian real estate surged by 24% compared to December, due to the announcement that borders would be reopening.'
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