Chinese investors set to increase property purchases in fringe areas of Sydney and regional NSW
2015-06-25A study by KPMG and the University of Sydney’s China Studies Centre, with supporting analysis from Knight Frank, showed that Chinese investors see the city’s fringe suburbs as an untapped market where they will get better returns than in the inner city.
Knight Frank analyst Dominic Ong said this was set to change because Chinese investors have become more familiar with the Australian market and realise they get more value for money outside the inner city.
“When foreign buyers first start investing in Australia they choose areas they know, so they purchase in the CBD,” Mr Ong explained.
“As they get more familiar with the market they become more comfortable going outside the inner city and that’s what we’re seeing with Chinese investors.”
He added that Chinese demand for inner city properties has dwarfed supply, forcing them to look at locations where there are more buying opportunities.
Other areas in their crosshairs include outer suburbs of Melbourne, the Gold Coast and regional NSW.
The study also showed 2014 Chinese investment volume in Melbourne and Sydney real estate outstripped both London and New York, with Australia the second largest recipient of total
Seventy-two per cent of that Australia spending was in NSW.
The research further revealed that Chinese buyers have mitigated the risk of buying property in locations they are unfamiliar with — such as regional areas — by buying projects offered by Chinese developers.
“This provides [them] a sense of both familiarity and pride,” the study said.
Source: CNBC
- *E-mail:
- *Cel:
- *Password: