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Why China’s easing of Covid restrictions will boost overseas demand for Australian goods

ProDentim


China’s easing of the world’s toughest Covid restrictions could boost overseas demand for Australian properties, a property group predicts.

From January 8, Chinese citizens will be allowed to travel overseas, meaning international students and tourists are expected to visit Australia again in large numbers.

Kashif Ansari, co-founder and managing director of property marketing group Juwai IQI, said the return of Chinese visitors to Australia would also boost demand for Australian properties.

“China goes from virtually closed to almost wide open in just a few weeks,” he said.

“It will be the first opportunity in three years for most Chinese people to visit foreign real estate markets.”

China's easing of the world's toughest Covid restrictions could boost overseas demand for Australian properties, a property group predicts.  From January 8, Chinese citizens will be allowed to travel overseas, meaning international students and tourists are expected to visit Australia again in large numbers (pictured are travelers at the international airport from Xiamen Gaoqi)

China’s easing of the world’s toughest Covid restrictions could boost overseas demand for Australian properties, a property group predicts. From January 8, Chinese citizens will be allowed to travel overseas, meaning international students and tourists are expected to visit Australia again in large numbers (pictured are travelers at the international airport from Xiamen Gaoqi)

Juwai IQI, which markets real estate to wealthy Asian investors, sees Australia as the most popular market for potential buyers of Chinese real estate, based on surveys, ahead of the United States, Canada, the Japan, Thailand, United Kingdom, Malaysia, United Arab Emirates and Vietnam. and South Korea.

Kashif Ansari, co-founder and managing director of property marketing group Juwai IQI, said the return of Chinese visitors to Australia would also boost demand for Australian properties.

Kashif Ansari, co-founder and managing director of property marketing group Juwai IQI, said the return of Chinese visitors to Australia would also boost demand for Australian properties.

Kashif Ansari, co-founder and managing director of property marketing group Juwai IQI, said the return of Chinese visitors to Australia would also boost demand for Australian properties.

Under Australian Foreign Investment Review Board rules, foreigners cannot buy established houses or apartments, but they can buy brand new properties.

This means that foreigners who are not permanent residents in Australia are limited to new apartments and house and land complexes.

Mr Ansari said it would take another 18 months for Chinese travel to return to pre-pandemic levels, and in turn revive Chinese demand for overseas properties which had plummeted since the start of Covid there. almost three years.

“We expect Chinese outbound travel and accompanying real estate investment to grow rapidly in January from its current very low level,” he said.

“We cannot bounce back to 2019 levels all at once.

“Outbound travel from China will snowball and could reach 2019 levels by mid-2024.”

Juwai IQI, which markets real estate to wealthy Asian investors, sees Australia as the most popular market for potential buyers of Chinese real estate, based on surveys, ahead of the United States, Canada, the Japan, Thailand, United Kingdom, Malaysia, United Arab Emirates and Vietnam.  and South Korea (pictured are apartments in Rhodes in central western Sydney)

Juwai IQI, which markets real estate to wealthy Asian investors, sees Australia as the most popular market for potential buyers of Chinese real estate, based on surveys, ahead of the United States, Canada, the Japan, Thailand, United Kingdom, Malaysia, United Arab Emirates and Vietnam.  and South Korea (pictured are apartments in Rhodes in central western Sydney)

Juwai IQI, which markets real estate to wealthy Asian investors, sees Australia as the most popular market for potential buyers of Chinese real estate, based on surveys, ahead of the United States, Canada, the Japan, Thailand, United Kingdom, Malaysia, United Arab Emirates and Vietnam. and South Korea (pictured are apartments in Rhodes in central western Sydney)

Real Estate Markets Chinese Buyers Like

1. Australia

2. United States

3. Canada

4. Japan

5. Thailand

6. UK

7. Malaysia

8. United Arab Emirates

9. Vietnam

ten. South Korea

Source: Juwai IQI

China’s National Health Commission is no longer releasing daily Covid figures, despite an increase in cases following the abrupt end of the draconian Covid zero isolation.

He also announced that from January 8, 2023, visitors to China would only be required to present a negative PCR test within 48 hours of departure.

Visitors to China will also no longer have to self-quarantine in a hotel for five days.

The Foreign Investment Review Board’s September quarter report, released in December, found that China and Hong Kong were, by far, Australia’s largest source of residential real estate investment from overseas.

Mainland China and Hong Kong accounted for $3 billion in approved residential property proposals in fiscal 2021-22, a level more than seven times higher than Vietnam’s $400 million.

They were also well ahead of Singapore, India, Taiwan, Malaysia, Indonesia, Nepal and the UK.

In the September quarter, Chinese and Hong Kong interests invested $1.2 billion in Australian residential property, compared with $100 million each in Vietnam, Singapore, India, Taiwan and Malaysia.

Under Australian Foreign Investment Review Board rules, foreigners cannot buy established houses or apartments, but they can buy new properties (pictured are apartments under construction at Wentworth Point in central west Sydney in 2017)

Under Australian Foreign Investment Review Board rules, foreigners cannot buy established houses or apartments, but they can buy new properties (pictured are apartments under construction at Wentworth Point in central west Sydney in 2017)

Under Australian Foreign Investment Review Board rules, foreigners cannot buy established houses or apartments, but they can buy new properties (pictured are apartments under construction at Wentworth Point in central west Sydney in 2017)

The Foreign Investment Review Board's September quarter report, released in December, found that China and Hong Kong were, by far, Australia's largest source of residential real estate investment from overseas.

The Foreign Investment Review Board's September quarter report, released in December, found that China and Hong Kong were, by far, Australia's largest source of residential real estate investment from overseas.

The Foreign Investment Review Board’s September quarter report, released in December, found that China and Hong Kong were, by far, Australia’s largest source of residential real estate investment from overseas.

In terms of overall business investment across a range of industries, China was fourth behind the United States, Canada and Singapore.

The return of Chinese travelers to Australia would come amid a housing market downturn, caused by eight Reserve Bank interest rate hikes since May to tackle the worst inflation in 32 years.

The RBA’s cash rate is now at a 10-year high of 3.1% after inflation in the year to September jumped to 7.3% – a level more than double the target of 2 3% from the central bank.

Sydney was the hardest hit market, with the median house price since April plunging 11.9% to $1,243,126, according to data from CoreLogic.

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