Chinese still keen to buy our property: HSBC
Chinese demand for Australian commercial real estate and residential property is expected to remain strong with investors not deterred by tougher foreign investment rules, according to a senior HSBC executive.
The bank’s head of Asia-Pacific real estate, Findlay McPherson, says the Australian commercial and residential property sectors are likely to stay strong as overseas investors, especially those from China and Singapore, remained keen buyers.
In the residential market, price growth has been mixed, with Sydney and Melbourne outpacing other cities and underpinning a rise of 2.9% in housing prices across the capital cities in the three months to September 30, according to CoreLogic.
“The Australian market is performing very strongly across all asset classes,” McPherson tells The Australian.
“I think that is the result of the economy and the political system here being considered very stable.
“That makes it very attractive to overseas investors.”
McPherson says he believes Chinese investment will remain strong, despite recent government crackdowns on foreign buyers.
In NSW, the state government recently introduced a 4% stamp duty surcharge on residential property purchases by foreigners and plans a 0.75% land tax surcharge for overseas buyers that will start from next year.
Chinese buyers are eyeing off more Australian commercial and residential property.
“The political environment is very important,” McPherson says.
“It’s important from the point of view that it makes investors feel comfortable and of course people want to invest when they feel comfortable.”
McPherson says a growing number of investors, both in Australia and abroad, are currently looking to diversify their assets and the move is expected to maintain the momentum in the domestic property market.
“The more experienced property investors are really looking to diversify right now,” he says.
“People are turning away from assets like bonds, which have very low interest rates, and they are looking at property. They like property because they can touch and feel it.”
Dan McLean, head of commercial real estate, HSBC Australia, says an increasing number of overseas firms are starting joint ventures with domestic partners to make property purchases.
“We are seeing that they are finding assets and then joining up with local firms more often,” he says.
McLean says international buyers are also looking beyond Sydney and Melbourne for commercial property.
This article originally appeared on www.theaustralian.com.au/property.
