Australian properties have its woes, but the Chinese-and other foreign investors are certainly welcoming it. A forecast appearing on Domain AU agrees that the Chinese will probably buy Australian properties, now that it's on a discount. Wealth growth is still on an all-time high in China, and it's benefitting the suddenly-rich middle-class.
Aside from the riches piling up, the conditions in the Australian market are just right for Chinese investors to snap up bargains. The trade war is another factor, which might keep the prices low for just long enough for the Chinese to buy these bargains.
Juwai chief executive Carrie Law explained that the Chinese don't have many choices for investments back home. Australian properties, however, have gone down in prices, but with nobody to buy them. Enter the Chinese and other countries with the buying power to invest in these properties, and the market is once again alive.
The Chinese would rather invest in real estate-their investments are already valued at 53 percent-rather than in bank deposits, where the return of investments tends to be lower. Aside from that, the Chinese real estate hasn't been performing better as of late, giving the Chinese middle-class the choice of moving to other foreign real estate properties.
Australia isn't the only attractive market for Chinese investors. Out West, the Canadian city of Vancouver has emerged as a great investment destination. Almost $3 million worth of Greater Vancouver purpose-built rentals changed hands in 2018. It's a 37 percent improvement in that category over last year.
The demand for rental accommodation has remained the way it's been, but today, it has largely been about redevelopment. Deals have been made where properties have been developed again to maximize investments. This is part of the reason why the activity of multi-family markets had been diminished, as more people realized their investments should be put elsewhere.
Better pricing is expected by analysts as the market adjusts to current conditions. Vancouver is also reeling from a political upheaval only last October with their recently concluded civil elections, so the time to buy or invest in properties is now.
As in the US, the motivation for Chinese middle-class families and investors have also been for a better future. A large percentage of Chinese properties have been bought with the purpose of having a place to live in Australia, with the aim of a better future.
