The Prosperous 2014: Why More Wealthy Chinese Property Buyers would invest in Sydney?
What has happened in 2013 exciting Sydney Property Market may just be the tip of the iceberg for 2014 according to real-estate.com.au. The 2013 success was driven by a shortage of quality stock, post-election job confidence, low $A and record low interest rates. None of these will change during 2014 and a large pool of wealthy cashed up Chinese buyers will be hungry after missing out in 2013.
Long time renowned as a world most beautiful " Harbour City" by the Chinese, Sydney are the ultimate distination for wealthy Chinese buyers and they are the driving force in the Sydney real estate market. There's plenty of Chinese interest in prestigious address. In Sydney, overseas and local Asian buyers are snapping up waterfront and luxurious residential home aggressively.
A study from Bain Consulting found that half of China's ultrawealthy—those with $16 million or more in wealth—now have investments overseas. And it's not just the money that's exiting the country. The wealthy are increasingly following their money overseas.
A study by Hurun and Bank of China found that more than half of China's millionaires are considering emigrating or have already taken steps to move overseas.
So what are the key drivers for this growing Chinese appetite for Sydney property?
Restrictions on property purchases in China, new laws encouraging off-shore investment and a new band of wealth in China are partly behind it. There is an estimated 10 million millionaires in China.
Serious health impacts of perennial air pollution in China which lead to thousands of premature deaths each year. The wealthy are moving overseas to protect their wealth, their health and their families.
low $A heats up Chinese interest in Sydney property. Sharp and deep depreciation of the Australian dollar are one of the major driving force of Asian interest in Sydney Market. Current AUD/CNY Rate is in historic low since July 2009. More than 25% in depreciation from its peak.
The (Chinese) government always amend the legislation, which makes the rich to control their funds for any new regulations are feeling nervous.Chinese investors are looking for safe assets protection. Daniel Yong from the Shanghai office of Auton Investment says much of China's foreign investment is about people securing their wealth in a safe, stable environment, with the added benefit of potentially leveraging that investment into an emigration strategy either now or later.
Wealth Diversification: China private savings worth $US10 trillion and that money needs to be invested somewhere, and the property restrictions to only one house for each family makes Australian property an attractive option.
They are also looking for better environments for their children—with better schools and cleaner air.Attractiveness of Australia's long-standing local education agency also promoted the development of real estate, especially those known to have the best public and private schools in the district.Reports that China is Australia's largest international students States.
- reference: sbs.com.au, realestate.com.au, brw.com.au, xinhuanet.com, smh.com.au