Media release - 7^thMarch, 2013

Australian real estate set to benefit from foreign investment

A curb on real estate ownership in China could be great news for the Australian property market, according to Angus Raine, CEO Raine & Horne.

Last week, the Chinese government announced a series of proposed restraints on real estate speculation, including stricter enforcement of capital gains tax on home sale profits and the imposition of higher deposits for the purchase of second homes.

“Turning the screws on property speculation appears to be aimed at limiting a potential asset bubble in China,” said Mr Raine.

“The upshot is that cashed up Chinese nationals could look to foreign property markets, which will surely mean more money flowing into Australian real estate in capital cities such as Sydney.”

This move by the Chinese government comes hot on the heels of the introduction of the ‘Significant Investor Visa’, which accelerates migrant visas for foreigners who invest more than $5 million in approved investments in Australia.

“We’ve had a few wins in recent times with the Significant Investor Visa, and combined with the Chinese government’s restrictions, this will surely mean more money finding its way into the Eastern Suburbs housing market,” said Barry Goldman, Co-Principal of Raine & Horne Double Bay and Bondi Beach.

“In fact, we’ve already received significant interest from Chinese buyers,” said Mr Goldman, who is seeking expressions of interest by 14 March, 2013, for a modern, five bedroom home at 141A Victoria Road, Bellevue Hill.

“This luxurious near new residence has been created by renowned architects, Hurcum Design, and has attracted plenty of enquiry from Chinese buyers, with one offer already on the table.

“It ticks all the boxes with Chinese buyers and investors including harbour views, excellent build quality and close proximity to schools,” added Mr Goldman.

It’s also expected that legislative changes in China will flow through to the prestigious North Shore real estate market.

“The decision by Beijing is set to speed up demand from Chinese nationals for North Shore real estate,” said Hugh Macfarlan, Principal of Raine & Horne Chatswood/Willoughby.

“Although, to be fair, there has already been steady growth in the number of Chinese buyers in housing markets such as Willoughby, Roseville, Naremburn and Artarmon over the last three years.”

For example, a townhouse at 5/1a Artarmon Road, Willoughby, which Raine & Horne Chatswood/Willoughby sold at auction last Saturday, drew interest from Chinese buyers, while Mr Macfarlan confirms another townhouse in the same block is attracting Chinese investor attention.

“Around 30% of our Chinese buyers are overseas investors, so we expect that any restrictions on real estate in China will flow through to our markets.”

-ENDS-

For further media information contact:

Angus Raine, CEO, Raine & Horne on 0409 920 697

Andrew Harrington, National Marketing & Communications Co-ordinator on 02 9258 5400

Chinese real estate clampdown to boost Sydney housing markets