Chinese investors are eyeing off Perth's housing market in a move experts say could underpin higher prices.
Concerns the east coast market is overheated, a Chinese Government corruption crackdown and growing numbers of Chinese studying in WA are tipped to fuel a surge of investment in Perth's residential property market.
Such a move would likely drive house prices higher but opinions vary on how significantly. Foreign investment in WA property more than trebled in the three years to 2012-13 on Foreign Investment Review Board figures, which only reflect approvals.
Anecdotally, real estate agents have reported growing Chinese interest in Perth in the past year.
Foreign investment policy mostly restricts foreign investors to new dwellings to boost stock.
Mark Hay Realty Group's Mark Hay said Chinese investment would grow as cautious investors left the "overheated" east coast.
"The level of investment in the WA housing market will increase dramatically," he said.
"I know of a couple of Chinese individuals and companies who are looking at selling up to 50 per cent of the development to their Chinese interests offshore."
Jones Lang LaSalle global capital markets research director David Green-Morgan said Sydney and Melbourne historically received the bulk of Chinese investment but as options dried up, Perth and elsewhere would be increasingly targeted. "You would certainly expect that to have some effect on prices," he said.
Junwai.com chief executive Andrew Taylor, whose website caters to Chinese buying overseas property, said a shared time zone, a strong China-WA relationship and price growth potential made Perth attractive.
MLG Realty chief executive Marcus Gilmore said Chinese investment in Perth could rival Melbourne and Sydney, where it made up to 20 per cent of new supply. Drivers included the growth in Chinese student numbers.
In WA, FIRB approvals for overseas investment rose from 368 in 2009-10 to 1267 in 2012-13.
Nationally, approved investment for the first nine months of 2013-14 was up sharply to nearly $25 billion - a trend Lombard Street Research analyst Freya Beamish warned could create a "real estate bubble".
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Well....I don't see why it's not possible. Movements in the price of housing are no longer dictated by the need for shelter, the main driver is now speculative demand. We have a FIRB who in reality seem to exist merely to rubber-stamp as much foreign investment in Australia as possible, even when it's detrimental to our own people (our kids that is, it's good for local investors and property sellers).
On balance, I'm not sure how likely it really is but it will be interesting to watch.
Well....I don't see why it's not possible. Movements in the price of housing are no longer dictated by the need for shelter, the main driver is now speculative demand. We have a FIRB who in reality seem to exist merely to rubber-stamp as much foreign investment in Australia as possible, even when it's detrimental to our own people (our kids that is, it's good for local investors and property sellers).
On balance, I'm not sure how likely it really is but it will be interesting to watch.
I would think Queensland a much more likely target. Miw?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
While it would be good for current owners of property to see prices rise, but not for anyone else or the economy, despite whatever excuses people make.
But your stats of foreign buyers being 350 or something in 2009,and the more recent one being 1,300 just wont cut it. Thats only one good development Mike.
Here is Sydney building is crazy . One development near me have over 2,000 units being built now, another just started started with over 400, and the old wd and ho wills tobacco factory next to eastgardens has reports of 4,000 units on one sit. These are all 3 minutes drive from one another, and would be about 5-7 kms from the city..Closer to the city, there is even more again, one after the other.
Can people tell me about unit development in their capital city ?
What about travellers, Is Sydney worse than Melbourne, Perth worse than Brisbane ? Where is building most rampant ? Where does not have this building frenzy going on ? What are seeing or noticing ?
While it would be good for current owners of property to see prices rise, but not for anyone else or the economy, despite whatever excuses people make.
But your stats of foreign buyers being 350 or something in 2009,and the more recent one being 1,300 just wont cut it. Thats only one good development Mike.
Here is Sydney building is crazy . One development near me have over 2,000 units being built now, another just started started with over 400, and the old wd and ho wills tobacco factory next to eastgardens has reports of 4,000 units on one sit. These are all 3 minutes drive from one another, and would be about 5-7 kms from the city..Closer to the city, there is even more again, one after the other.
Can people tell me about unit development in their capital city ?
What about travellers, Is Sydney worse than Melbourne, Perth worse than Brisbane ? Where is building most rampant ? Where does not have this building frenzy going on ? What are seeing or noticing ?
Are you Chinese looking to buy? If you are, Mike will tell you about this blue chip development with ocean views just minutes from Fremantle. Here is one that sold with a bit of a discount.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
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