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SG Property down under attracting Chinese buyers

Property Here - Monday, October 28, 2013

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A new report from Colliers International has revealed that Chinese interest for commercial property in Australia is rising, due mainly to strong trade ties, new laws that stimulate overseas investment and restrictions which limit real estate purchases in China.

“In 2012, Chinese outbound property investments around the world set a new record of around US$4 billion (S$4.95 billion), a trend that is continuing into 2013,” said Malcom Tyson, State Chief Executive, NSW for Colliers International.

“Their appetite for Australian real estate assets has grown significantly due to the relatively sound Australian economy, proximity to China and regulatory changes from both the Chinese and Australian governments which have made it easier for them to invest their wealth in Australia.”

The four main sources of Chinese investment in Australian real estate are banks and financial institutions, developers with global ambition, sovereign wealth funds (SWFs) and large state-owned enterprises (SOEs) as well as high-net-worth individuals (HNWIs).

For instance, state-owned Shanghai Greenland Group made its first foray back in March purchasing the Sydney Water Board site, which will be developed into the city’s tallest residential building at 240-metres high.

Year-to-date, Chinese investors have spent over AU$600 million (S$742.5 million) in residential development sites in Sydney alone, which are expected to generate 5,000 units.