Chinese buyers are looking to exploit Australia’s housing market as the Australian dollar dwindles and house prices struggle, leaving many buyers in fear of being priced out of their dream home.
As the effects of COVID-19 cause unemployment rates across Australia to rocket, and social distancing restrictions still hinder the real estate industry, wealthy Chinese investors are seeking to capitalise on the enticing circumstances.
Australia’s admirable approach to managing the spread of COVID-19 also means it should be ahead of many other major countries in its attempt to get its economy back on track.
However, due to the coronavirus outbreak originating from Wuhan, it is thought that the country best positioned from an economic point of view is China.
Speaking on ‘A Current Affair’, George Chmiel, chairman of the Chinese property portal Juwai said: “China is back in business much earlier than the rest of the world.”
Australia’s major cities, Sydney, Melbourne and Brisbane are considered most attractive for Asian buyers, and Mr Chmiel mentions the country’s coronavirus response going down well in China.
“That makes it even more appealing to foreign buyers. Marketers in China are already using Australia’s good performance to persuade parents of children who have been studying in the US and the UK to look at Australia instead,” he said.
One real estate agent from IQI Western Australia, Lily Chong, told Juwai that even travel bans are not deterring some keen buyers, with one client purchasing without even physically viewing a property.
“I have a buyer from China who cannot travel here but is still purchasing,” she said.
“Until recently, we never actively sold to China but since posting 26 properties on Juwai.com three weeks ago we have already received five Chinese buyer enquiries,” said Chong.
It is feared that increased overseas investment will make it increasingly harder for first time Australian buyers to get their foot on the property ladder.