According to the Australian newspaper, a new survey has found it difficult for some apartment openers to sell sub-quality properties as demand from Chinese property buyers has dwindled and the market is turning to quality.
According to Investorist, a real estate trading platform, the Australian Home expectations report (Investorist') Government raised taxes on foreign buyers, banks tightened lending policies, and controls on capital outflows from China reduced Chinese buyers` demand for Australian property by more than a quarter, s Australian Off The Plan Sentiment Report) said.
At present, Australia`s house prices have been nine consecutive months of decline. In addition to banks restricting loans to investors and high-risk buyers, buyers are also tired of high house prices, so the housing market in many of Australia`s big cities has receded, liquidation rates have fallen, and sellers have to offer greater discounts to attract buyers. In addition, the new state, Victoria and Kunzhou housing market is also facing the problem of foreign buyers tax increases, the state also cancelled the new apartment stamp duty concessions.
Ellis (Jon Ellis), chief executive of Investorist, said Chinese investors were beginning to invest money in countries where regulation was more favourable, while small private companies from China were affected by controls on capital outflows. Developers and brokers have had to adapt to the new normal of falling sales and longer sales.
In addition, the apartment market further turned to the pursuit of quality. Buyers, whether from Shanghai, Sydney, Hanoi or Melbourne, are more educated, refusing properties of quality or location that do not meet demand, as sales of quality apartments become more difficult.
It is reported that 86 percent of the developers surveyed said their buyers were mainly from China, but only 60 percent of the developers wanted to sell their properties to Chinese buyers in the next 12 months. Others said the next focus would be on buyers from India and Vietnam and would continue to sell property to buyers in Singapore and Malaysia.
Nearly 1 / 3 of the developers surveyed said the bank`s tightening lending policy has helped to cut foreign buyers` demand by more than half.
But while demand from Chinese buyers has dwindled, it will not disappear altogether, with some Chinese buyers using cash deals that do not require loans.
