A curb on real estate ownership in China could indicate positive news for the Australian property market, according to Raine & Horne real estate CEO, Angus Raine.
Last week, the Chinese government announced a series of proposed restraints on real estate speculation, including stricter enforcement of capital gains tax on home sale profits and the imposition of higher deposits for the purchase of second homes.
Raine says ‘turning the screws’ on property speculation appears to be aimed at limiting a potential asset bubble in the country.
“The upshot is that cashed-up Chinese nationals could look to foreign property markets, which will surely mean more money flowing into Australian real estate in capital cities such as Sydney.”
This move by the Chinese government comes hot on the heels of the introduction of the federal government’s instatement of the Significant Investor Visa, which accelerates migrant visas for foreigners who invest more than $5 million in approved investments in Australia.
Raine & Horne co-principal, Double Bay and Bondi Beach, Barry Goldman, says this could be particularly good news for capital city markets.
“We’ve had a few wins in recent times with the Significant Investor Visa and, combined with the Chinese government’s restrictions, this will surely mean more money finding its way into the Eastern Suburbs housing market. In fact, we’ve already received significant interest from Chinese buyers.”