Chinese buyers return, causing tension at auctions across Australia as they outnumber locals, says real estate expert. Here’s Why They’re Buying Houses Down Under
- The auctioneer said that Chinese investors are back on the real estate scene
- He said local buyers felt ‘resentment’ towards Chinese buyers.
- Chinese buyers spend up to $8 million on Australian real estate
A major auctioneer says Chinese buyers have returned to the Australian property market and are causing tension at auctions as they outnumber locals.
Tom Panos, a real estate coach who has auctioned houses on Channel Nine’s The Block, told 2GB’s Ben Fordham that he has noticed an influx of Chinese buyers at his Saturday auctions.
The Sydney-based auctioneer said recent estimates that international investors were buying $8m worth of Australian property every day were conservative and that the amount being spent was “actually much higher”.
‘The Asian buyer has returned. I’ve been seeing it on Saturdays at auctions,” Panos said.
‘$8 million worth of Australian properties are being snapped up every day by buyers in China.’
He said the Chinese were “outperforming local house hunters” and spending more money than investors anywhere else in the world.
Panos said he could “see some resentment” toward international investors who “didn’t get the applause” that local buyers would get after the auction closed.
“You can tell there’s tension there,” he told the radio host.
The auctioneer said foreign buyers had to get approval from the Foreign Review Board, a process it described as “not difficult.”
“The Chinese love Australian real estate,” he said.
“They love the education system here, they love the lifestyle, they love the fact that it’s probably less polluted, it’s a safe place.”
He said buyers were spending cash first in Melbourne and then in Sydney.
‘Not only that, but after the Chinese buyer is the Hong Kong buyer. They are the second largest foreign buyers who are buying,” he said.
Panos said that sometimes what appeared to be an Australian buyer at an auction was actually someone representing an investor from Hong Kong or China.
“I think often a buyer who buys a property is an Australian citizen, but when you look at the money trail, where it came from, you find that it actually represents a foreign buyer,” he said.
‘That’s who buys a lot of real estate right now. In fact, this is helping the market hold up relatively well in pricing even though we’ve had 12 rate hikes.”
Tom Panos, a real estate coach who has auctioned houses on Channel Nine’s The Block, said he had noticed an influx of Chinese buyers at his Saturday auctions.
Mr. Panos discussed the recent boom with Ben Fordham of 2GB radio, who revealed that Australia is the top property investment location for Chinese buyers.
Mr. Panos discussed the recent boom with Ben Fordham of 2GB radio.
Many Australians said they were bracing for prices to soar with the return of Chinese buyers.
“The Australian government should end this ASAP before prices go to the moon,” one person wrote.
Panos asked his followers if they thought that international buyers make it difficult for local buyers to acquire property.
‘Absolutely. They surely love Australia and have money,” said one.
‘No. Foreign buyers buy what locals can’t afford anyway,” wrote another.
A third commented: “That’s obvious, it started in the early 2000s: overseas buyers feel more secure investing in Australia.”