Chinese property buyers are losing interest in Australia, due to the tougher government regulations and new tax rules, according to a recent report published by The Herald.
Based on the data revealed by Juwai.com, a Chinese international property portal, the number of Chinese inquiries in Australian residential property has gone down 9.7 percent in the first half of the year compared to the same period in 2016. The median inquiry price has also reduced to about $350,000 from $394,000.
As the Chinese regulators adopted new guidelines in an attempt to restrict Chinese corporation investment overseas, the number of new developments in the Australian property market has also gone down.
Australia has been the second-most popular country in the world for Chinese investment. “Their top goals are risk diversification and children’s education,” said Jane Lu, the Australian head of Juwai.com. She thought Australia is very appealing both areas.
However, the new tax rule applied by the Australian government make some Chinese buyers retreat from the property market. For example, New South Wales doubled its foreign-buyer surcharge to 8 percent, while Queensland implemented a 3 percent surcharge.
As Chinese buyers turn away from Australia, US remains the top destination for them.