The recent turmoil in the Chinese stock markets have been a heyday for Australia's housing market. In a report from smh.com.au, Chinese investors seeking a safe haven for their money have chosen to purchase property in Australia in light of the declining value of the Australian dollar.
One clear example is the recent sales of CBRE Group, who had in their portfolio fifteen properties located in and around Melbourne last month. Chinese developers quickly snapped up the available inventory right after the Shanghai Composite Index showed signs of sputtering.
This was echoed by CBRE Group Melbourne Senior Director Mark Wizel, who said, "It would seem that they're actually doubling down. There's been a genuine acceleration for the past three weeks."
Not only is the Australian market benefiting from the stock market issues in China. In a report from theguardian.com, real estate markets in Britain and China have also experienced the increased presence of Chinese buyers flush with cash.
Sydney Sotheby's International Realty Principal Michael Pallier observed, "A lot of high net worth individuals had already taken money out of the stock market because it was just getting too hot. There's a huge amount of cash sitting in China and I think you'll find a lot o that comes to the Australian property market."
The main fear nowadays is the effect of the increased presence of foreigners in many local housing markets. In a report from propertyforum.com, one of the anticipated effects would be the rate of increase of prices because of the bidding wars that may occur over properties. Another one would be the sudden withdrawal of Chinese funds in the respective markets, leaving many properties high and dry without any takers. As fast the Chinese investments have come, so can be their withdrawal from the markets not only in Australia, but from the other markets as well.
