Many analysts are taking note of a trend regarding the sudden wave of mainland Chinese buyers acquiring Australian properties left and right. This is hardly a surprise considering how many Chinese are looking to real estate as an alternate source of income, except that is not the reason they are buying all those properties.

1. Why Are Chinese
Buyers Getting
Australian
Properties?
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2. Many analysts are taking note of a trend regarding the
sudden wave of mainland Chinese buyers acquiring Australian
properties left and right. This is hardly a surprise considering
how many Chinese are looking to real estate as an alternate
source of income, except that is not the reason they are buying
all those properties.
According to the latest polls, Chinese consumers are the
country’s largest investors in real estate, followed by
Canadians and Americans. It is not just in the Australia either;
the Chinese are acquiring properties from other countries –
Canada being the top option. The reason for the sudden wave
of buyers, though, is not the possible profits of acquiring
property in the country entails – they want to live here.
New Neighbours
An estimated forty five percent of China’s more than
seventy million population in the top income bracket are
mulling options to emigrate to other nations. Buying properties
is merely the first step in achieving that goal. There are
different factors contributing to their decision to want to leave
China, environment and education chief among them.

3. The trend is so powerful that real
estate agencies are publishing Chinese
language versions of their literature.
The Reserve Bank of Australia is
starting to express concern over the
level of investor lending, but all signs
point to this trend continuing for at
least another three years.
New Class or a Repeat of the Past?
Historians are drawing
comparisons between the current
trend and the Japanese business
expansion during the late 80s and
early 90s. There was a rapid build-up
in Japanese investments during those
times, which saw their market
presence rise from almost nothing to
close to $65 billion. Unfortunately,
those investments also went through
an equally rapid decline, losing as
much as seventy percent in 1992.

4. Analysts predict the trend to
peak on June 2016,when the number
of Australian housing permit
approvals reaches a high of more
than a hundred and forty thousand.
Only time will tell if the
diversification and potential
emigration motivation behind the
purchases will save the Chinese
buyersfrom the fate of the Japanese
investments two decades ago.
SOURCES:
https://www.clsa.com/about-clsa/
media-centre/2014-media-releases/
the-chinese-dream.php
http://www.sentinelpg.com.au/
http://www.rba.gov.au/