Chinese investment in Australian property may have taken a serious hit, but Australia is still the top destination for Chinese investors.
According to a new report from real estate firm Cushman & Wakefield and Real Capital Analytics (RCA), China’s investment in foreign real estate for the September quarter dropped 51% year on year to US$2.5 billion.
It was the lowest amount Chinese have spent overseas since the last quarter of 2013.
The report found that Australia took first place for overseas destination for investment with US$783 million in deals made in the September quarter. Australia was followed by The United Kingdom and Hong Kong.
Dominic Brown, Head of Reseach Australia and New Zealand at Cushman & Wakefield, said that the reduction in Chinese investment was mainly due to new regulations introduced by the Chinese government to restrict money leaving China.
Chinese investment has also been discouraged by new measures introduced in Australia’s Budget aimed at cooling the nation’s red-hot property market.
But the money is still coming in.
“Chinese investors have deployed a cumulative US$1.2 billion in real estate Down Under thus far in 2017,” Brown said.
Large-scale property developments helmed by Chinese investors are continuing.
In Sydney’s Circular Quay for example, the Dalian Wanda group is currently developing a $1 billion hotel and apartment complex.
Source: The Sydney Morning Herald