The fact that Chinese property buyers are making their presence felt throughout Australia is not news, but what's motivating these individuals just might be.
A report from Broker CLSA, The Magic Dragon: Chinese Investment and Oz Housing, makes the case that wealthy Chinese buyers in particular are scooping up property in an attempt to enhance immigration options while also protecting wealth by securing assets outside of China's borders.
This has helped Australia become the second most popular option for wealthy Chinese looking to move.
"A key reason (for buying here) is increasing emigration options, by having property in the preferred destination country,'' The Australian quoted the report as stating in a 14 August article.
"Diversifying investment portfolios is another important motive. This is perhaps a euphemism for getting capital out of China as a mechanism for wealthy Chinese to mitigate the perceived economic and political risk of living in, and having wealth tied up in, the People's Republic of China."
Of course, it's not just the ultra-rich who are eyeing homes for sale in Australia hungrily.
"Chinese outbound property investments beyond Asia really took off in 2009, and they reached a record $US9bn in 2013," Terence Tang, managing director of capital markets and investment services at Colliers International, told Business Spectator in a 14 August report.
"We believe more Chinese developers will look overseas to support the needs of their clientele."
However, with supply constraints being felt throughout the wider market, it's more important than ever for foreign home buyers to work with qualified professionals who can help them reach their property goals.
Reserve Bank of Australia assistant governor Christopher Kent and deputy head of economic analysis David Orsmond spoke at length about housing supply in the country as recently as June.
The economic experts told the House of Representatives Standing Committee on Economics Inquiry into Foreign Investment in Residential Real Estate that while housing supply is responsive to growing demand, the time it takes to plan and build creates a lag.
In addition to this, a number of factors can extend wait times, including a shortage of land, existing resident pushback to new developments and drawn-out approval processes.
Fortunately, the expert team at Ray White can help foreign buyers of all stripes find the property they're looking for, helping to streamline a process that can become prolonged and expensive without the right assistance.
