More Chinese Residents Keen on Purchasing Overseas Properties
The recent economic slowdown and stock market rout did not deter the enthusiasm of the Chinese towards purchasing overseas properties. Andrew Taylor the co-founder and co-CEO of Juwai.com one of the major overseas property information platform for Chinese buyers. Taylor believes that overseas property transactions will climb further was online traffic and phone calls show that there is no slowing down for overseas properties as these transactions will be at $220 billion by 2020 up from $52 billion last year.
Simon the second founder and co-CEO of Juwai.com stated that the yuan’s depreciation will only change investment destinations even the fall of the yuan against the US dollar, but risen against the UK pound and Australian dollar. Overseas purchases will continue to be strong in the next five years, as more Chinese will be living as Middle class. Traditional gateway cities such as New York, London and Sydney are maintaining their popularity while other cities saw the increase in Chinese interest. An investment expert that provides migration and investment consultation to Chinese buyers sais that the are no reduction in the enthusiasm of the Chinese in buying Australian properties. Eventually the downturn on the domestic property in China drove many Chinese developers to rush to Australia to purchase land.
The perception of Chinese investors pushed up housing prices in Australia is overplayed since the biggest issue it a short of supply of housing in major cities is so severe that developers buys a develop site downtown, then demolish the old buildings to erect residential projects. Still international buyers account for 8 percent of the market but can help push the whole market as interest rates will probably dampen the heat of the demand and a cool down in the market will eventually be appreciated.