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Report: Australian property still favoured by Chinese investors

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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.

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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