Chinese investors in Australian property are expected to go on a buying spree over the next four weeks before foreigners and international students are banned from purchasing real estate.
The Federal Government’s ban on foreigners buying existing properties comes into effect on April 1 and will continue until March 31, 2027.
International students and temporary migrants on a 457 working visa will be banned from buying an existing property but they will still be allowed to buy a new build.
Fiona Yang, the executive partner of the Plus Agency which markets Australian property to Chinese customers, is expecting a flurry of foreigner buyer activity until the end of March.
‘The ban will drive a surge in foreign buyers in early 2025, so you will have a significant increase in transactions as they want to catch the last train,’ she told Daily Mail Australia.
‘They worry that this is their last chance to buy.’
Permanent residents still able to buy both existing and new homes.
Ms Yang is expecting real estate agents to use the Australian government’s changes as a marketing tool to scare them into buying ‘before it’s too late’.
Chinese investors in Australian property are expected to go on a buying spree over the next four weeks before foreigners and international students are banned from purchasing real estate
‘Now, it is true the letter of the law doesn’t ban purchasing of new homes, but many buyers only see the headline,’ she said.
‘Also, many unscrupulous agents are using the ban as a selling point to urge buyers to move quickly.’
China was the biggest source of residential real estate investment during the September quarter of 2024 with $400million of asset purchases approved in Australia, data from Treasury’s Foreign Investment Review Board showed.
During the same three-month period, investors from Taiwan, Hong Kong, Vietnam, Indonesia, India and Singapore each bought $100million worth of Australian property.
Juwai IQI co-founder and group managing director Daniel Ho said a slowdown in the Chinese property market was making Australia’s ever-appreciating real estate a more attractive option.
‘China’s slower economy is behind some of these (property purchases),’ he said.
Treasury secretary Steven Kennedy told the Senate economics committee this week he was expecting the Chinese property market further weaken throughout 2025 as the economy slowed.
‘We expect growth to ease this year as the structural weaknesses in the Chinese property sector continues alongside weak consumer demand,’ he said.
Fiona Yang, the executive partner of the Plus Agency which markets Australian property to Chinese customers, is expecting a flurry of foreigner buyer activity until the end of March
Mr Ho said Chinese investors also want their children to study in Australia and are buying real estate in the hope they can turn their student visas into permanent residency.
‘They are purchasing for their children who they expect to attend school in Australia, or for themselves in advance of obtaining permanent residency,’ Mr Ho said.
‘High school students in China may spend 65 to 77 hours a week studying, including school hours and homework, and some parents would rather their children have a more Australian-style childhood.
‘They want their children to also have friends, to do sports, to learn to swim.’
Foreigners coming to Australia to study are allowed to buy real estate in the country but must sell within six months of leaving.
Mr Ho said foreigners were becoming more drawn to Australia as they are uneasy at a perceived anti-China sentiment behind US President Donald Trump’s protectionist trade and investment policies.
‘With the political uncertainly in the United States, Australia looks like a much friendlier country,’ he said.
Treasurer Jim Chalmers and Housing Minister Clare O’Neil earlier this month announced a two-year ban on foreigners buying existing homes and a crackdown on land banking.
Juwai IQI co-founder and group managing director Daniel Ho said a Chinese property market slowdown was making Australia a more attractive place to buy real estate
The government is under pressure to stop the soaring price of Australian property, which has all but destroyed the ambitions of average wage earners from buying a home in cities.
‘The ban will mean Australians will be able to buy homes that would have otherwise been bought by foreign investors,’ they said.
‘Until now, foreign investors have generally been barred from buying existing property except in limited circumstances, such as when they come to live here for work or study.’
The ban has been implemented via a ministerial regulation initiated by Dr Chalmers, and it would need to pass both houses of Parliament to become a permanent measure.
Houses most of Australia’s capital cities are beyond the reach of an average-income earner on $102,742 and apartment prices in Brisbane, Perth and Adelaide have soared by double-digit figures during the past year.
Units in Sydney are beyond the reach of a typical worker unless they buy a small apartment in an outer suburb.
