Large-spending Chinese drawn to Australia for migration
You might not initially think that tourism relates to residential real estate, but a new report highlights fascinating connections between Chinese tourists and the Australian property market.
From tourist to migrant
China's outbound tourists flock all over the world to experience vibrant new cultures, and it appears that Australia is so popular that it actually encourages these visitors to permanently migrate to the country.
Asian brokerage and investment firm CLSA released a report in January entitled Chinese Tourists - Exploring New Frontiers, which considers the impact that outbound mainland Chinese may have on the Australian commercial and residential property market.
Last year, 100 million mainland tourists left China, and numbers are expected to reach 200 million in 2014. It's predicted that the spending of tourists will triple, which will be a welcome injection to the Australian economy.
However, it's not just luxury goods that these buyers are after. The report notes that many mainland Chinese are now purchasing property in Australia after being won over by its charm.
On January 21 the Herald Sun also pointed out that Chinese are keen on Australian apartments. This foreign investment in property may create more diverse communities and the increased demand may push up prices, which is good news for sellers.
The educational opportunities and the dynamic collection of Chinese communities factor into a migrant's decision of buying a house in Australia, according to the Herald Sun.
Between July 2012 and June 2013, 11.8 per cent of settlers in Australia arrived from China. Only two countries were ahead of this, with 17.7 per cent of immigrants from New Zealand and 12.1 per cent from India, according to the Department of Immigration and Border Protection.
Popular spots for foreign investment
The popularity of Australian property is clear, but which areas are hot? This depends on where the demand is coming from.
In 2013's third quarter, there was a spike in owner-occupier demand for new property. States leading the charge in popularity were Victoria and West Australia, according to the Quarterly Australian Residential Property Survey for Q3 2013.
While demand from Australian investors was slightly lower, foreign investment actually grew in NSW, slowing in Victoria.
Queensland remains the most popular state for foreign investors, making up 20 per cent of new property demand in the third quarter. Foreign investors accounted for 16 per cent of such activity in NSW and a slightly lower 11 per cent in Victoria.