Chinese buyers looking to invest in Sydney property market
Last night I was looking at an insightful video about the Australian property market. It showed how China was looking to explore the Australian Prestige Market in a big way and what property managers are doing to cash on the trend. Recent launch of the Domain Chinese magazine at Opera House was met with applause by about 380,000 Chinese Australians living in NSW. The magazine website showcased China’s growing optimism towards the Australian Real Estate.
Experts feel that the introduction of Significant Investor Visa has actually created this positive stir. The Visa allows Chinese citizens owning property in excess of $5 million in approved investments in Australia to enter Australian shores faster. Close to a million millionaires in China are showing some kind of interest in Australian Real Estate and the “wheel has really started to churn”. It will be unfortunate if such huge mass of potential buyers are not catered to satisfactorily. As the world continues to acknowledge the increasing wealth bank in Asia, Sydney Prestige Market is determined to realize this huge demand and profit from it before others do so.
The video demonstrates that Australian properties, shown to a few private clients in Shanghai, got a great response from them. Nine such properties were put on display for about 60 investors and already one of these properties is looking good for sale. Lord Andrew Hay from Knight Frank feels that Euro Zone is also close to realizing the beauty of Australian Property market. He adds that Australia has entered into the property ‘safe haven’ for European investors. They feel that it is a good place to enjoy life even while it remains a great place to educate their children.
I loved the video and quite agree with it. I think that apart from the Significant Investor Visa, the hike in Sales Tax and Stamp Duty for Hong Kong Real Estate has also resulted in the Chinese buyers drifting to Australia. Also, the Euro crisis has caused instability all over Europe and until the Euro hole is sealed, buyers may choose to find safe haven in Hong Kong, Singapore and Australia.
Do you personally feel that the Chinese interest in the Australian properties market will continue to be strong in the future?
An 
Sydney’s auction clearance for this Saturday has brought back memories of ‘boom’ time. Standing at 76.3%, the clearance rate has been the highest recorded in last few years. Inner West Sydney has been the winner with 83% clearance. A few believe that such an activity on the Prestige Market is the result of optimism in the stock market. Others are talking about the mortgage rate cuts as the prime reason for buyer response. Six Chinese buyers fighting over a Vaucluse property and bidding in excess of $5 million is a hearty sight. The prestige market has not been moving for some time now and 8 properties selling at more than $2 million each looks like a worthy change.
