Chinese Investors buying up $24 Billion in property each year

POSTED ON July 6, 2017 @ 1:35 pm

It is no surprise that Chinese investment in 2016 has contributed to the $133.7 billion in property purchases.

Out of the total amount invested, Chinese buyers purchased $23.8 billion dollars worth of Australian property in the 2016 financial year.  The previous year was $18.4 billion a staggering $4.9 billion rise in just 12 months.

While demand remains strong, Australian property investments by Chinese buyers are unlikely to remain at last year’s levels once results for the 2017 financial year are released.

Capital controls, new bank lending standards and the latest foreign buyer taxes have contributed to wind back the clock to 2015. Despite the fact, the majority of foreign investment in Australian real estate still comes from China.

Data compiled by Credit Suisse in March showed that there were more than 1,500 properties purchased by foreign owners between October 2016 and January 2017, and 80% of those buyers were Chinese.

The report listed the top 5 countries for Chinese property investment in 2016, as follows:

1. United States
2. Australia
3. Hong Kong
4. Canada
5. United Kingdom

By using a measure of total foreign asset ownership as a percentage of GDP, it is said that China still ranks relatively low.  Being the second biggest economy on the planet, China is 18th on the list with foreign asset ownership accounting for 12% of its national GDP.

Forecasts are that Chinese investors will acquire more than $2 trillion of overseas assets in coming decade or so as they close the under-investment gap.

Original Source: Business Insider