Overseas Chinese News, citing the Herald Sun, reported that although the number of applications from foreign buyers has plummeted over the past year, Melbourne is still the most popular Australian location for Chinese home buyers.
In the foreign investment review committee`s annual report last month, the number of home-buying applications fell by nearly 2/3 in the year to June 2017, from 40149 to 13198, the lowest since 2013-2014.
In the past fiscal year, the number of investors asking for Melbourne property has doubled that of Sydney, according to data from an overseas Chinese real estate website.
Victoria is the most popular state among Chinese buyers` home approvals, followed by New South Wales, the site`s chief executive, Carrie Law said. The two states account for 73% of all property approvals by Chinese buyers. Kunzhou accounts for 18% of all property approvals, Western Australia 5%, South Australia 3%, and Chiefs 1%.
Foreign buyers usually submit multiple applications before fees are introduced in 2015, but they may end up buying only one house, according to a report by the foreign investment review committee. "this shows that the decrease in approvals does not mean less investment in residential property," the report said.
Law said this year`s figures are not comparable to those of previous years because of changes in rules and buyers` behaviour. But real estate developer Tim Gurner is not so optimistic, he said the downward trend in the real estate market can have negative consequences for real estate affordability. "over the past year, the number of foreign investment review committee applications has plummeted by more than 60 percent, and so will the number of new apartments that have begun building."
With Melbourne`s population growing by more than one hundred and fifty thousand a year, new homes are not enough to meet the needs of the new population. But Law believes Melbourne will continue to be welcomed by Chinese buyers.
"which city is better? Sydney or Melbourne? A lot of Chinese buyers think it`s Melbourne because it`s a good job, a good education, and a good fengshui. "
The most popular urban areas for Chinese buyers in the past year include CBD,Point Cook,Doncaster,Southbank and Toorak., according to search data from home-to-foreign websites
First National Glen Waverley real estate agent Danny Li said, Glen Waverley is still very popular with foreign buyers. "Glen Waverley is still a healthy urban area because it is regarded as a Xinhua immigrant area, and we see that the sale of the house is very hot." Especially the house in the school district. "
