Chinese property buyers celebrate falling Australian dollar
Couple a falling dollar with China’s wild sharemarket, and Australia becomes an even more desirable property investment destination — a safe haven and an increasingly cheap one.
Credit Suisse estimates that Chinese buyers poured $8.7 billion into Australian residential property in the 2014 financial year, an increase of more than 60 per cent on the previous year with stronger demand to come.
CoreLogic RPData’s Cameron Kusher noted that while capital city home prices had increased nearly 27 per cent since their last low point in May 2012, the dollar had fallen just over 13 per cent in trade-weighted index terms over the same timeframe.
Kusher found that Australian housing has become cheaper for Chinese buyers — and many other foreign buyers — in every city but Sydney over the past two years.
While Sydney’s housing prices have risen 10 per cent for buyers with yuan since May 2012, for those buying in Melbourne, its 3.2 per cent cheaper, Brisbane homes are down by 13.6 per cent, Adelaide by 18.2 per cent and Perth by 13.3 per cent.