New research suggests Chinese investment in Australian property is falling sharply

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  • Juwai, a leading Chinese Global Property Investment portal, estimates Chinese investment in Australian property fell by 26.8% to $US17.4 billion in 2017.
  • Residential investment made up the vast amount at $US14.1 billion.
  • Australia remains a favourite investment destination for Chinese, ranking second behind the United States in terms of inquiries on Juwai’s platform.

The value of Chinese investment in Australia’s property market fell sharply last year, mirroring a plunge in applications received by

According to estimates from Juwai, a leading Chinese Global Property Investment portal Chinese investment fell to $US17.4 billion in 2017, a decrease of 26.8% on the level of a year earlier.

Within that figure, Juwai estimates investment in residential property stood at $US14.1 billion, far larger than the $US3.3 billion plowed into commercial property.

Rather than a souring of interest in Australia, the group said the continuation of capital controls from Chinese regulators — limiting the amount of money that can leave the country — was the main factor behind the sharp decline.

“The capital controls clampdown, which began biting particularly hard from December 2016, has been an unquestionable success for Beijing.
It has restored investor confidence in Beijing’s ability to manage its currency and capital outflows,” Juwai said.

Suggesting that interest in Australian residential property still remains elevated, the group said, in both the number and value of inquiries through its platform to purchase Australian homes was the second-largest of any nation, only sitting behind the United States during the year.

Juwai

Juwai said it consulted hundreds of government, media, and industry sources to formulate its estimates in the latest report.

According to Australia’s FIRB, a total of 13,198 residential real estate applications were approved in the 2016/17 financial year, totalling $25.2 billion, well down on the 40,149 approvals, totalling $72.4 billion, granted in the 2015/16 financial year.

Rather than a collapse in investment, the sharp decline likely reflected the

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