Ever thought about targeting Chinese buyers for your Australian property?If not, you may want to reconsider, because Chinese buyers have Australian property set firmly in their sights. According to a recent survey by Chinese property portal Juwai, Chinese buyers overseas have ranked Australia as their number one destination to buy property (with 27% saying they’ll consider buying a property on their next overseas trip).
Why the interest?
Australia’s appeal to Chinese buyers is the same as it is for students, tourists and immigrants from China. We're a developed, primarily English-language country that leads the world in terms of wealth, economic outlook and quality of life. What's not to love?
But what about extra state taxes on foreign property buyers, you ask?
Thanks to the plummeting value of the Australian dollar against the Chinese Yuan, they have little impact. Chinese buyers feel that the exchange rate gives them a discount off the “true” value of the property, which acts as a counterbalance to any imposed taxes. So Australia's property market looks relatively cheap to the Chinese. And the Chinese rate property when it comes to investing. Chinese banks offer only low interest rates on deposits. And the Chinese stock exchange is volatile to say the least. So, according to the survey, Chinese overseas investors named residential property to be their favourite asset class.
But aren't there restrictions making it difficult for foreign investors to buy property in Australia, you ask?
In short, yes. And it pays to know what these regulations are so you understand the needs and requirements placed on your buyer. PropertyNow can offer important guidance here. The two most significant restrictions are:
New apartment developments in Sydney and Melbourne have to cap sales to foreign investors at 50% of all apartments available.
Chinese buyers have to make higher down-payments on their property as well as pay increased stamp duty on foreign investments (for NSW and Victoria).
Targeting Chinese students for your Australian Property
The Chinese love studying in Australia. So much so, they've made education an incredibly lucrative industry for us. According to the survey, "young adults from China have helped turn education into Australia’s third largest export industry and largest single services export".
And all of these Chinese students need accommodation. Juwai spokesperson, Dave Platter told the Financial Review, “Australia attracts a very large number of Chinese students,” he said. “Buying for a student who is going to be studying here is one of the most cited motivations among our buyers.”
So, those of you selling property that's ideal for student accommodation may want to tap into this market and factor it into your marketing strategy.
How PropertyNow can help
We're Australia's oldest agent-assisted property sales platform. We understand the ins and outs of selling property in any market. When selling through us, you get to keep control of your sale process, save thousands in agent commissions and have our support throughout your journey.
For a competitive price, we can list your property on all the major Chinese property portals that are partnered with realestate.com.au / REA group including:
- My Fun (also targeting Chinese buyers, the name means "buy property")
- Square Foot (reaching buyers in Hong Kong)
And have the added benefits of:
- Your listings translated into Mandarin at no extra cost
- All enquiries translated into English and delivered direct to your inbox
- 400 free phone and chat options to assist Chinese buyer enquiries
PropertyNow can also assist with listing your property on Juwai
Keen to know more? Our friendly team will be happy to answer your questions. Just call 1300 664 773.