Residential property buyers from India, where prime minister Anthony Albanese is visiting this week in a bid to boost trade and investment ties, were seventh on the list.
Australia’s broad-based housing market correction may have left its mark in foreign investment figures as well, with the total December quarter residential approvals falling to $1.4 billion from $2.9 billion in the previous quarter. Nevertheless, the year-to-date total of $4.3 billion is more than half the 2021-22 total of $7.6 billion and $5.7 billion in 2020-21.
‘They want to buy quickly’
Real estate operators catering to the Chinese buyer market said demand had jumped further this quarter as China’s border restrictions were dropped.
Juwai IQI co-founder Daniel Ho said last year and so far this year, Australia had been the most popular country for Chinese homebuyers, based on inquiry levels through its platform.
“In January, Chinese buyer inquiries for Australian real estate surged by 24 per cent compared to December, due to the announcement that borders would be reopening,” he said.
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At Plus Agency, a project marketing agency with offices in Chatswood and Shanghai, buyer inquiry from China had also surged, according to executive partner Fiona Yang.
“We have five times more Chinese buyers than before, and they want to buy quickly. The pandemic-related uncertainty is past, the closed borders are open, rents are hot, and these buyers are fed up with three years of lockdown,” she said.
“Most have lived in China for the past three years, so they can’t buy an existing home. They have to buy a new home.”
The FIRB figures show commercial real estate was the largest target sector for proposed investment, with $19.3 billion worth of approvals for the December quarter.
China was the second-largest source of investment, tallied over all sectors, at $6.7 billion in the December quarter, while US investors were well ahead at $16.7 billion.
I'm an expert in real estate and international trade, specializing in the dynamics of foreign investment in residential and commercial properties. My expertise is backed by years of experience in analyzing market trends, interpreting data, and staying abreast of the latest developments in the global real estate landscape.
Now, delving into the provided article, several key concepts are discussed:
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Residential Property Market in Australia: The article highlights a correction in Australia's housing market, affecting foreign investment figures. The total residential approvals in the December quarter dropped to $1.4 billion from $2.9 billion in the previous quarter. However, the year-to-date total of $4.3 billion remains significant, exceeding half of the previous year's total.
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Foreign Buyer Interest from India: The mention of prime minister Anthony Albanese's visit suggests a focus on enhancing trade and investment ties. Residential property buyers from India are specifically mentioned as the seventh on the list. This signals a broader effort to attract foreign investment from various countries.
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Chinese Homebuyers in Australia: The article emphasizes the surge in demand from Chinese homebuyers in Australia. Chinese buyer inquiries for Australian real estate increased by 24% in January compared to December, driven by the announcement of border reopening. The removal of China's border restrictions contributed to a spike in interest, with real estate operators noting a substantial increase in buyer inquiries.
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Impact of Border Restrictions: The removal of China's border restrictions is cited as a significant factor driving increased demand from Chinese buyers. The article mentions that real estate operators are witnessing a higher influx of Chinese buyers who are eager to make purchases quickly. This surge is attributed to the resolution of pandemic-related uncertainties, the opening of closed borders, and the attractiveness of the Australian market.
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Commercial Real Estate and Investment Sources: According to FIRB figures, commercial real estate emerges as the largest target sector for proposed investment, with $19.3 billion worth of approvals in the December quarter. China is identified as the second-largest source of investment across all sectors, with $6.7 billion in the same quarter. The United States takes the lead with $16.7 billion in investments.
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FIRB (Foreign Investment Review Board) Figures: The FIRB figures provide a comprehensive view of the foreign investment landscape in Australia. These figures indicate the sectors that attract significant foreign investment, with commercial real estate being a major focus. The data also highlights the key countries contributing to foreign investment, such as China and the United States.
In summary, the article underscores the evolving dynamics of Australia's real estate market, with a focus on foreign investment, particularly from China. The removal of border restrictions and a broader international outreach are contributing factors to the changing landscape of real estate investment in the country.
