Chinese property investors are increasingly turning to non-bank lenders as they face tougher restrictions on funds transfers from mainland China, according to non-bank lender Chifley Securities.
A spike in demand from Chinese investors has seen the proportion of Chifley’s Securities’ loan book dedicated to Chinese investors jump, with close to 27% of its book now worth more than $500 million devoted to Chinese borrowers.
These loans have largely been directed at financing development for residential and commercial projects, as well as the acquisition of properties for future development or currently under construction.
Coupled with the tightening of investment lending by Australian banks, Chifley Securities’ director Joe Morello says non-banks can expect another bumper year of demand from cashed-up Chinese borrowers.
“The tightening of Chinese Government rules to stem the flow of capital from the country and the tougher lending criteria of the major Australian banks has seen a boost to non-banks’ business volumes.
“Coupled with the depreciation of the Australian dollar and the historic low interest rates, non-banks are expected to post a bumper year in lending and we now have close to $1 billion worth of funding lines.”