Chinese property buyers back and making a difference

Australia is back in fashion for China-based property investors and data shows that they can pay with cash.

Agents are reporting strong activity at the top end of the market. Picture: Rob Leeson

For a while, it seemed as if the Chinese buyer – a potentially powerful influence at property auctions – had left the scene.

But in recent months Australia has emerged as the number-one overseas destination for China-based property investors, even surpassing Canada in terms of activity.

In the latest podcast we discuss new data from Treasury which shows that approvals to foreign buyers are up 40 per cent in the past three months, while NAB says the share of total sales to foreign buyers rose for the fourth quarter in a row to a five-year high.

On the ground there are reports of exceptional activity at the top end of the market; one Toorak agent in Melbourne says more than a dozen China-based buyers were willing to pay cash for mansions in the neighbourhood in the $10m to $20m range.

Who is the guest?

Pete Wargent of AllenWargent Property Buyers

Why him?

Wargent is a leading commentator in the property market, with a specific focus on New South Wales and Queensland

What are the topics?

• How the Chinese buyer rebound is changing the market

• Where are the mortgage stress signals in the bank results?

• The murky business of bonus interest rates

• Waiting for the interest rate peak

Question of the week

Regular listener Kevin asks: “How much lenders’ mortgage insurance is paid by borrowers in Australia compared to how much is ever paid out? You would think that with property values mostly rising and default rates being exceptionally low, that very little LMI insurance is ever redeemed. And, for a bonus, who is pocketing the difference? Do banks self insure?

I don’t know how to get the answer as every search I do only brings up answers to how much LMI will I have to pay.”

Questions always welcome to the podcast, via [e-mail]

Originally published as Chinese property buyers back and making a difference