Chinese investors are moving away from the Australian property market according to the latest report by global property consultancy Knight Frank.
The paper, titled Changing Currents, Rising Tides
, found that the volume of office deals and hotel deals dropped by 65% and 42% respectively on a year-on-year basis. Overall, Chinese investment has decreased by 37%.
“The volume of Chinese investment in Australia is down considerably year-on-year because of a lack of mega-deals in the first half, as large deals such as the Investa portfolio dragged the 2015 number higher,” said Matt Whitby, Knight Frank’s head of research and consulting.
“Amid competition from other Asian buyers, however, there is a strong Chinese appetite for en-block commercial properties in both Sydney and Melbourne, attracted by rental growth supported by strong tenant demand and a supply shortage.”
Dominic Ong, the firm’s head of Asian markets, said that fewer buying opportunities and a positive rental outlook have drawn Chinese investors to the commercial market.
“Since June there have been a number of major deals in the making, which will underpin the investment market outlook for 2016,” he said.
“Activity has picked up in the past few months. Some of the most recent transactions in Australia from Chinese buyers include 15 Help Street, Chatswood which sold for $43.8 million to One Pro Investment Group; 20 Bridge Street, Pymble which sold for $78 million to YuHu; 210 George Street, Sydney sold for $160 million to Poly Group; and 61 Lavender Street, Milsons Point sold to Aqualand for $110 million.”
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