Coronavirus: Chinese buyers ready to pounce on Australian property

Chinese buyers are taking advantage of the subdued property market conditions as restrictions begin to lift.

Perth real estate agent Vivien Yap shows of a Cottesloe property. Picture: Colin Murty

Chinese buyers are taking advantage of the subdued market conditions and attractive healthcare options as Australian restrictions on the industry begin to lift.

While the hurdles for offshore buyers have continued to mount in the form of border closures and government restrictions, inquiry has remained strong. New data from Chinese property portal Juwai IQI shows that while buyer inquiry was down 14 per cent though the first quarter of the year, demand for property did not fall as significantly as it had from locals.

The data came as NSW moved to lift its ban on public auctions and open homes from next weekend after the federal government-­enforced halt six weeks ago.

It joins the Northern Territory in reopening the housing market, while Perth eased restrictions on open homes last weekend. Other states are expected to follow after selling activity dropped 40 per cent ­nationally last month.

Juwai executive chairman Georg Chmiel expects overseas buyers to flood the market once the restrictions on travel lift.

“We still have strong demand from Chinese buyers for Australian property, but getting them to the transaction is harder than normal at the moment,” Mr Chmiel said. “Australia, so far at least, has managed the pandemic well and looks even more appealing to foreign buyers than in the past. Marketers in China are already using Australia’s good performance to persuade parents of children who have been studying in the US and the UK to look at Australia instead.”

Property researcher CoreLogic reported the strongest auction clearance rates in six weeks.

Sydney sold 62.7 per cent of auctions, while Melbourne performed a little better at 63 per cent.

The east coast capitals remain popular, with data from Australian classifieds site realestate.com.au showing luxury apartments attracting the most clicks.

In the heart of Sydney, the King & Phillip project is leading overseas interest, followed by the harbour views seen from Blue at Milsons Point. In Melbourne, Bowen & Queens Residences in the city centre and the inner-suburb project, the Coburg Collective, are popular.

Interest is also improving in the blue chip suburbs of Perth due to the capital’s limited COVID-19 outbreak. Ray White Dalkeith and Claremont principal agent Vivien Yap said the isolation of the West Australian capital had proven ­attractive to buyers.

“They do feel that we are also closer to the Asian countries as well,” she said. “So, should the travel restrictions be lifted to allow travel, it is a shorter travel time which means exposure to the cabin air is halved.”

Ms Yap said recent interest had primarily been from Hong Kong, mainland China and Indonesia, with buyers happy to act quickly if they were confident in the sale.