Chinese nationals are expected to buy over $104bn in global real estate this year, according to a new report from Juwai.com. Although Juwai's Chinese Global Property Investment Report has found that last year's figures were higher, over $133bn, and that Australia actually received the second largest share of this outpouring capital.
Data from the Foreign Investment Review Board (FIRB) found that Chinese nationals were approved to purchase nearly $24bn of property between 2015 and 2016, and over $18bn in the 2014 and 2015 years.
Australian Broker reports that the estimated sum of over $104bn was calculated by Juwai, from both corporate and individual investors' real estate purchases and is founded on the company's own data, as well as that of industry and government.
GAW's chief of operations, Sue Jong said that this is the first time in history that Chinese investors have acquired over AUS$130bn of international real estate, and that the 2016 total represents a 25.4% increase over that of 2015's as well as an 845% increase over the last five years. "Our forecast suggests 2017 will also be one of the top three years on record," stated Jong.
Jong added that, investment flows in Australia have decreased substantially from their peak in former years, but that they still remained strong by Historic standards. This drop is due to tighter capital controls, bank lending standards as well as soaring foreign buyer taxes.
Although it's too early to foresee what is going to happen over the next 10 years, Jong said that Juwai is confident that if these trends are maintained, Chinese real estate investment in Australia this year, will be similar to that of 2015.
The top five countries for Chinese investment by dollar amount in 2017 were:
As far as recent trends are concerned, Chinese property investment this year will be equal to levels of 2015, or approximately $105bn. "That would make 2017 one of the top two or three years in history. While levels are lower than in 2016, they will still be extremely high by any standard,” Jong said.
Jong also believes that over the next decade, Chinese investment is conservatively estimated at well over $2trn across the globe, with half of these investment dollars most likely being poured into property.