Chinese Buyers' Top Suburb Preferences and New Property Trends in Immigration

Chinese interest in Australian real estate is now so strong that prospective buyers have to make an appointment to be shown properties in large groups, an agent has revealed.

Peter Li, the general manager of the Sydney and Shanghai real estate agency, Plus Agency, said he now organises seminars for up to 20 buyers at a time - with drinks and snacks.

'Usually, walk-in buyers are handled one-by-one by whichever agent happens to be in the office/showroom, but there are too many for that now,' he told Daily Mail Australia. 

'We take buyers in groups to the buildings they most want to see.' 

Chatswood is a popular Sydney suburb for both Chinese buyers and residents to live in, along with the CBD.

Juwai IQI, which markets property to prospective Asian buyers, said the typical Chinese buyer was now much more likely to be a permanent resident rather than a foreigner. 

Chinese interest in Australian real estate is now so strong prospective buyers have to make an appointment to be shown homes in large groups, a real estate agent has revealed (pictured are prospective buyers in Sydney)

A study published in the Journal of Housing Studies found Sydney's city centre to be the most popular suburb for Chinese buyers, followed by Sydney Olympic Park, Parramatta, Edmondson Park, Chatswood, Macquarie Park, Epping, West Ryde, Potts Point and Mosman (all marked)

Daniel Ho, the group's managing director and co-founder, said this meant they were buying a place to live in rather than rent out, and wanted more space.

'The Chinese buyer of today is very different to the Chinese buyer of 2019, before Covid,' Mr Ho told Daily Mail Australia.

'Before the pandemic, offshore investment buyers accounted for a larger share of Chinese purchases but no longer.

'Most Chinese buyers today purchase for their own use and intend to move to Australia.

'Many already live here as permanent residents or holders of two passports. 

'That means Chinese buyers today look for larger apartments, townhouses, or single-family homes. 

'They are less likely to purchase a one-bedroom or small two-bedroom inner city apartment.'

In the year to July, Australia's permanent and long-term intake stood at a record-high 399,850, on a net basis, surpassing the levels of 2008 and 2009.

Based on just arrivals before departures, 1,041,400 people moved to Australia in a year with skilled migrants and international students among the 122,690 who relocated in July alone, the Australian Bureau of Statistics data showed.

When tourists and short-term working visas were included, Australia's total arrivals tally of 1,743,390 was the highest since January 2020, shortly before the pandemic, and 61.2 per cent or 661,790 higher than a year earlier.

From January to July, a record 258,880 international student came to Australia, on a net basis, which was 25 per cent higher than the previous record set in 2018.

Permanent residents are allowed to buy an existing home but foreigners are restricted to a new house or apartment, or vacant land, and must have approval from the Foreign Investment Review Board. 

Australian real estate is increasingly seen as a good investment as Chinese property developers Evergrande and Country Garden struggle to repay their debts, following years of building ghost apartment towers. 

Chatswood (pictured) on Sydney's north shore is popular with Chinese buyers and Chinese people

Chinese President Xi Jinping's 'three red lines' policy restricting what property developers can borrow has sparked a flight of capital.

His crackdown on free speech in Hong Kong and entrepreneurs has also made Australia a more attractive destination for the wealthy.

A paper by Song Shi, an associate professor at the University of Technology, Sydney's School of Built Environment, found Chatswood to be the only suburb in both the top 10 lists for Chinese buyers and for being home to the largest number of Chinese people.

Just under half, or 42.4 per cent, of residents in Chatswood reported having Chinese ancestry in the 2021 Census. 

The median house price of $2.93million is well more than double Sydney's mid-point house price of $1.36million.

Chatswood's 2.6 per cent increase during the past year has been stronger than greater Sydney's 1.3 per cent increase, CoreLogic data showed.

But it was well below Hurlstone Park's 16.3 per cent increase that took the median house price in this part of south-west Sydney to $2.014million. 

Mr Shi's study, published in the Journal of Housing Studies, found Sydney's city centre to be the most popular suburb for Chinese buyers, followed by Sydney Olympic Park, Parramatta, Edmondson Park, Chatswood, Macquarie Park, Epping, West Ryde, Potts Point and Mosman.

In the year to July, Australia's permanent and long-term intake stood at a record-high 399,850, on a net basis (pictured is Chatswood train station)

By share of population, Burwood, Eastwood, Hurstville, Rhodes, Chatswood, Haymarket, Carlingford, Chippendale, Zetland and Ultimo had the highest proportion of people with Chinese ancestry.

Mr Shi said Chinese restrictions on the outflow of capital funds in 2017 only affected a small number of Sydney suburbs, arguing Chinese demand only put up prices where there was a large concentration of Chinese people. 

'We found the only Sydney suburbs in which Chinese buyers appeared to have had a strong impact on prices were those with large concentrations of Chinese residents,' he said on The Conversation.

But the Institute of Public Affairs, a conservative think tank, said high immigration would drive up rents and house prices more broadly, as new housing supply failed to keep pace with population growth.

Daniel Wild, the IPA's deputy executive director, said this was placing pressure on families.

'Australians must brace for even further increases in the cost of housing and rents as the federal government's record, unplanned migration intake arrives without any plan to build the number of homes needed,' he said.

Shadow immigration minister Dan Tehan said this would make it harder for the young to buy their first home.

'Young Australians are struggling to afford rent or they can’t find a place to live, and this means they’re also struggling to save for a deposit to get on the property ladder,' he said.