Australian real estate agents should be prepared for a potential influx of Chinese buyers for Golden Week.
Chinese international property site Juwai predicts that 6 million Chinese will travel overseas this Golden Week, a 10% increase on 2016.
As a kicker, Golden Week coincides with China’s Mid-Autumn Festival this year, meaning the Chinese will have eight days of holidays rather than the usual week-long break.
Golden Week runs from October 1st to October 8th and will see many Chinese looking to “fly n’ buy” at their favourite property destinations.
Several factors point to 2017’s Golden Week seeing strong property sales.
In July, China’s Consumer Confidence hit 114.6, its highest point in 20 years. In addition, Chinese are enjoying a strong job market and steady income growth.
China’s incredibly high housing prices and tougher regulations have made overseas property an even more enticing proposition.
Juwai conducted a survey earlier this year which found that 57% of its Chinese consumers plan to purchase property in the countries they visit during Golden Week.
According to Juwai, Thailand is the top destination for Chinese tourists followed by Japan, USA, Singapore and Australia.
Although Chinese buyers are still largely attracted to property in Sydney and Melbourne, more affordable cities such as Perth and Adelaide are becoming an increasingly viable option.
In 2016, Adelaide ranked as the fourth most popular city viewed by Chinese buyers on Juwai after Melbourne, Sydney and Brisbane.
Easier travel is another factor influencing where Chinese buy property. Last December, China Southern Airlines began direct flights three times a week between Guanzhuo and Adelaide.
At the time, the Australia China Business Council (SA) president Sean Keenihan told The Advertiser that “a trip to SA is Chinese visitor’s shop window to high-end food purchases, property investment, education and migration opportunities”.
Kennihan estimated that the minimum benefit to the SA economy of each return flight would be an average of $1 million, totalling $150 million a year spread over a range of industries.