Chinese buyers have been bringing massive inflow of capital almost everywhere through real estate but there is a new report that is now suggesting that the Chinese property boom has cooled off.
According to news.com.au, investment bank Credit Suisse has recently released a report that reflects a 30 percent slowdown in demand from Chinese buyers by the end of this year. The reports is said to have cited Chinese consumer sentiment and the challenging conditions of the middle to upper-class Chinese as the factors driving the demand downward.
Speaking about the findings on the report, Credit Suisse analysts Damien Boey and Hasan Tevfik have remarked that the "weight of evidence suggests that at the very least, there has been some cooling of Chinese interest in recent times, off an historically high level", according to news.com.au.
"Even we have been surprised by the recent increase in Chinese demand for Australian housing," they added. "After such a strong pull-forward of demand, we could now be seeing some consolidation. In our view, it is the cyclical weakness in Chinese income and wealth that is driving cyclical weakness in Chinese property buying abroad."
Moving further, it should be noted that within the period that Chinese have been bringing in cash in the Sydney and Melbourne markets, the prices in property soared while interests were low and demand from overseas was high.
Tony Crabb, from Savills Australia says, "It will ebb and flow according to many different factors. There are five different kinds of buyers from China, all with different motivations and horizons." He added while comparing Shanghai and Sydney on behalf of investors who are family, "The cost of an apartment in Shanghai is the same as the cost of an apartment in Sydney." Therefore Australia was an attractive option for Chinese buyers. He also said, "Look at the difference between the two. Australia is relatively pollution-free, we have freehold title, rule of law, free education and healthcare. When you look at it on that basis it becomes absolutely clear the value proposition in Australia is very strong." Read more: https://www.news.com.au/finance/real-estate/is-the-chinese-property-boom-over/story-fndban6l-1227597924948
