Chinese investors driven by regulation changes

1.11.13A recent report has highlighted the reasons behind the recent influx of Chinese investors into Australia, which could be invaluable information to anyone interested in property investment – or selling their own real estate in the coming months.

According to the report from Colliers, the relationship with China has grown due to a number of different factors. The biggest one is the Chinese government limiting the amount of domestic property investment allowed, while simultaneously encouraging the international investment.

This has led to the situation seen across the Australian property market now, which has seen Chinese investment triple between 2007 and 2012.

This highlights the increased degree of investment interest being experienced by Chinese investors across the country – which has undergone larger growth than mineral exploration and development.

Malcom Tyson, the state chief executive officer for New South Wales Colliers International, said that during 2012 a new record of $4 billion USD emerged in the Australian market from Chinese investment, which is set to continue well into 2014.

“Their appetite for Australian real estate assets has grown significantly due to the relatively sound Australian economy, close proximity to China and regulatory changes from both the Chinese and Australian governments which have made it easier for them to invest their wealth in Australia,” said Mr Tyson in a October 30 statement.

Furthermore, there are four key different types of investor looking into Australian property.

Major Chinese companies like banks and financial institutions, developers with global ambitions, state-owned enterprises and wealth funds, and high net worth individuals are all vying for an opportunity to purchase Australian property in the near future.

This could provide a great opportunity for anyone interested in selling their commercial or residential property in Sydney to secure a great return on your real estate in the coming months – especially with conditions expected to continue into the new year.

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