China’s demand for Australian property will continue to grow in 2015, according to the latest forecast by experts and property investment specialists. Ausin Group (Finance), a company which provides sales and mortgage service to Chinese investors, recently announced its forecast for the next financial year. Managing director Joseph Zaja said that sales are expected to reach $1.5 billion by June 30 2015, compared to $900 million calculated over the previous financial year.
“I don’t see the trend slowing down” Zaja said. “It’s here to stay.”
The number of loans arranged by the company is also expected to double, while the number of home sales is set to increase by two-thirds. The value of mortgages arranged for Chinese investors is also expected to grow in the 2015 calendar year.
This trend is also heavily reflected by the Annual Report on Chinese International Migration, which calculates that 25,500 Chinese nationals obtained residency in Australia from 2011-2012. According to the publication, 18% achieved residency through investment.
Since June 2013, Chinese investors have remained the biggest buyers of Australian property. The rising demand has been attributed to the flattening of the Chinese real estate market, combined with a range of features which make Australia appealing to investors.
Australia’s high standard of education and low pollution levels are believed to be among the major factors that drive the interest of Chinese buyers. Research also indicates that Australia is considered a safe location for property investment which generates stable returns.
Brisbane, Sydney and Melbourne continue to be the most popular places for these purchases. Good infrastructure links and easy access to the CBD are highly valued by Chinese buyers. Those who invest in the Melbourne market tend to seek properties that are close to major universities.
The growing interest in Australian property among Chinese investors is expected to drive demands for new projects over the next financial year. It is anticipated that these trends will significantly benefit local developers and related industries.