Chinese property buyers seek good schools
The pull of Australia’s lifestyle and education system are two of the main reasons Chinese buyers are heading here. China’s former one-child policy and their highly pressurised education system are driving interest to Australia, according to an RMIT study.
Why are Chinese buyers coming to Australia?
China's "going-out" policy since 1999 had further driven Chinese to invest offshore, while unfavourable government policies in other countries "deflected" capital flow to Australia, RMIT associate lecturer Peng Wong said.
There are push and pull reasons why Chinese buyers are coming here. Arsineh Houspian Canada abolished their Immigrant Investor Scheme in February 2014, while the Singapore government imposed "cooling measures" such as the 15 per cent stamp duty for foreigners.
There were also limited investment options in China and an underperforming domestic residential market, he said.
China remains by far the biggest foreign buyer of Australian property, splashing $24.3 billion in 2014-15 – more than triple the United States and six times the outlay from Singapore, the Foreign Investment Review Board annual report shows.
Chinese parents are sending their children to Australia at an earlier age for education.
Parents don't want to subject their children to the "high pressure cooker" education system
Mr Wong and Mr Higgins, who interviewed property experts in Shanghai as a part of the study, revealed parents were sending their children to Australia at an earlier age for education.
China's education system was rigid and lacked innovation, Mr Wong said. "Some of the young families do not think it's actually a good idea to subject their kids to such a pressurised environment, and as a result they start to send their kids overseas."
Property expert said that residential properties near universities and higher-ranked secondary and primary school zones in Sydney were experiencing significant international student enrolments and attract enormous amount of interest for local and international Chinese Buyers.
Changes to student visa rules from July 1 last year boost demand for properties in good primary school zones. Parents and relations of foreign students can apply for Guardian visas to accompany international students aged under 18 in Australia and this could further boost property demand.
What areas they are looking at?
A Fairfax Media analysis of 2016 Domain school zones report data combined with this year's HSC results, shows the median house price in the catchment zone in some of Sydney's top 20 performing public schools has climbed by up to 31.4 per cent, especially in Sydney north Shore area with good access to high ranking Sydney Public Primary and High school and arrays of renowned private school for boys and girls.
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