Six months after banks tightened loans from overseas buyers, tens of thousands of Chinese buyers of apartments in Australia are struggling to save their investments.
This year, the big four banks stopped lending to overseas buyers in an effort to curtail their risks.
They received loans with false income certificates, hoping to tighten credit to avoid over-reliance on Chinese investors.
The change has had a significant impact on Australia`s housing market, but it remains disappointing for the Chinese buyers involved.
David Wang, a Beijing-based real estate agency, says the changes this year have affected many Chinese investors.
"the Chinese customers who delivered the property this year may have signed up a few years ago," he said.
"so maybe there are about 50,000 investors."
"assuming there are about 30 percent of all payments, and there are 30,000 affected clients left, that`s not a small amount," he said.
Chinese banks are also cracking down on capital outflows, so investors can only lend to other Asian banks.
Wang said that even if Chinese buyers tried to borrow money from places like Singapore to pay for apartments in Australia, it would be difficult for many to get timely approval for the loan.
Australian property developers have said in recent months that Chinese buyers have withdrawn their contracts.
While there are many Chinese buyers who want to send their children out to study, there are investors like Cai Yiyi who just think Australian property is cheaper and safer than China`s crazy house prices.
Ms Cai made a down payment of $93000 in January at the urging of a Sydney-based real estate agent friend to buy a one-bedroom apartment in Burwood.
"I think it was my fault because I didn`t do my research," she said.
"I really wanted to buy this house, so I bought it according to my friend`s advice."
Since then, she has encountered four big banks to stop lending to overseas buyers.
Now that her delivery date is approaching, she says she has run out of options.
"because I can`t pay for the remaining five hundred and thirty thousand, all I can do is find another bank," she said.
"otherwise, I`ll try to transfer it to someone else, at least get my down payment back, but I hear it`s hard."
To help resolve problems caused by the inability of foreign buyers to deliver, the federal government has moved to make it possible for other overseas buyers to take over the property.
In the case of a failed delivery, the change means that houses are still seen as "new houses" in foreign investment rules.
This means that other overseas buyers can take over the contract.
"this change has addressed the concerns of the property industry, which means that property developers will not be troubled by the withdrawal of foreign buyers from the purchase contract," said fiscal Morrison.
"it is common sense that an apartment or stand-alone house has just been built, or is under construction, and property rights have not changed, and it is common sense to think of a new house as a new one."
