As the Chinese property market suffered its biggest annual house price fall in nearly four years in October, it is no wonder that Chinese investors are turning to the Australian property market.
Alliance Mortgage Solutions, a small Sydney-based brokerage says a quarter of their total loan settlements written this year were for Chinese investors living overseas.
Eric Cui, Sales Director at Alliance Mortgage Solutions told Australian Broker that the current state of the Chinese property market is one of the reasons why Chinese investors are looking at Australia.
“The Chinese property market is stabilising after experiencing strong growth, so that has caused Chinese investors to become cautious as they aren’t quite sure what will happen in the next couple of years. That is why Australia is popular for Chinese investors. The Australian market offers good rental returns and stable capital growth for investors.”
When asked how they are taking advantage of the strong interest from Chinese investors, Cissy Fang, a director of Alliance Mortgage Solutions said they are using WeChat – a popular Chinese social network – to tap into the market.
“Over 600 million Chinese people around the world use WeChat, which is a social media platform. We have been using WeChat to spread special offers, campaigns, and promotions to let customers know about the Australian market and promotional offers from the banks. We also use it to communicate with real estate agents and consumers.”
Cui’s advice for brokers who might be looking to tap into the Chinese investor market is to partner with real estate agents in China, where brokers can give presentations to clients on the Australian property market and the Australian mortgage market.