Overseas buyers bought nearly half of Melbourne’s new apartments. China and Southeast Asia investors are taking over Australia and preparing “muffled fortune”!
According to the report on August 16, 2017， foreign buyers have bought 40% of Melbourne’s new apartments so far.
According to the Freedom of Information Act ，from mid-2015, foreign buyers’ investment residential taxes have become a huge cash cow.
Australia is still the second favorite destination for house buyers in China. Compared with China’s housing prices, Australian houses are still very economical for Chinese buyers.
In the past year, the tax has generated more than $ 133 million in revenue for the government.
Real estate consulting firm Charter Keck Cramer found that 40% of new apartments in Melbourne have been sold to offshore buyers.
“The developments in Sydney and Melbourne have reached their peaks , which is not a coincidence, and foreign buyers and developers are getting more and more active in taking participate in that,” said Robert Papaleo, National Executive Director of the company.
Numerous development projects have contributed to the development of the local construction industry, but have also raised concerns about the affordability of housing and the pressures of infrastructure and population growth.
These development projects have also changed the city’s skyline, and overseas investment in construction has begun to increasingly occupy the city of Melbourne over. A Singapore development company is building a huge residential building in Southbank.
A Chinese development company is also building Swanston Central on the edge of Melbourne’s city center, which will accommodate more than 1,000 apartments.
Foreign Investment Review Committee data found that a large number of foreign investment flock to the NSW and VIC, and most of the investment comes from China and Southeast Asia.
Griffith University economist research found that between 2004 and 2014, only a quarter of the growth in house prices in Melbourne and Sydney came from foreign investment.
Victoria State has taxed foreign investors from mid-2015. Between 2016 and 2017, the number of taxed transactions increased by 44% to $4,000.
Professor Phibbs said that these investments also changed the Melbourne Center from other aspects.
For some foreign investors, investing in property is a way of obtaining the right of abode. This is also one of the factors in the soaring population of Melbourne. By the middle of this century, the population in Melbourne will double.
A recent study found that since 2006, the population of Melbourne has grown by one million people.
As the population continues to pour into Melbourne, the livable metropolis, the future demand for the apartments will be more and more.
At present, the main target customers of the apartments are still young, single group. At the same time, the trend of reducing family living areas is more and more obvious, many elderly Australians tend to be replaced to a smaller-area residence, which will further promote the needs for small apartments.
For developers, so much demand on the apartment buildings enable them to make more efforts on building and developing small apartments.
Conclusion:
Chinese investors’ interest in Australian property will not stop abruptly, Australian property’s attraction still exists, especially in some hot cities like Melbourne and Sydney, such cities’ real estate still has the appreciation and hedging potential.
For Chinese buyers, the housing prices in domestic first-tier cities such as Beijing, Shanghai and Guangzhou have been far beyond the affordability, and housing prices in these cities have already reached the ceiling space, while the rent prices are very low. However , in cities such as Sydney and Melbourne, the properties are not only have more potential for appreciation, the rent prices are also keep increasing.
Images from internet
