Chinese homebuyers seek wealth protection, migration options: report
20 Aug 2014
WEALTHY Chinese investors spiriting money out of their home country to plunge into Australian property are motivated by the chance to secure future migration options and to put assets beyond reach of Chinese authorities, a report says.
Broker CLSA says Australia ranks second only to Canada as the preferred place for wealthy Chinese wanting to migrate.
Predicting a continuing flood of money from China, the report extrapolates emigration survey findings to suggest that as many as 10 million of the 70 million Chinese in the top income bracket would be willing to migrate to Australia if allowed.
“A key reason (for buying here) is increasing emigration options, by having property in the preferred destination country,’’ says The Magic Dragon: Chinese Investment and Oz Housing report.
“Diversifying investment portfolios is another important motive. This is perhaps a euphemism for getting capital out of China as a mechanism for wealthy Chinese to mitigate the perceived economic and political risk of living in, and having wealth tied up in, the People’s Republic of China.”
CLSA’s Andrew Johnston said many professionals, business owners and senior government officials were looking to migrate and buy property in Australia and that trend would continue.