Chinese interest in Australian property is growing further, with wealthy buyers snapping up $4 million trophy homes in the country’s most luxurious areas.
Property group Juwai IQI has revealed that wealthy Chinese buyers with permanent residence in Australia were particularly interested in luxury homes and regularly traveled abroad for work.
Wealthy Chinese businessmen are now locked in a bidding war for expensive homes on Sydney’s north shore, including new properties in subdivided blocks that local buyers were not particularly interested in.
Daniel Ho, the group’s managing director, said seven per cent of top buyers from China who made inquiries with his company were interested in Australian properties worth about $4.5 million.
This would be the average house price in Coogee, in Sydney’s south-east, or in Castlecrag on the lower north shore.
“We call them ‘frequent flyer buyers’ because they may seem to spend as much time on airplanes as they do in China or Australia,” he said.
‘These are buyers from China who have Australian residency and frequently travel back and forth for business and family obligations.
“They are wealthy and want to raise their families in Australia and are looking for homes valued at $4 million or more.”
Chinese buyers flocking to Australia are increasingly seeking trophy homes worth at least $4 million, new data shows.
Inquiries from Chinese prospects increased by 10 percent in 2024.
Thomas Ma, chief executive and co-founder of Fang.com.au, said monthly inquiries for homes on Sydney’s North Shore had increased 450 per cent since 2021, with local Chinese buyers particularly interested in homes close by. of the schools.
“The North Shore is attractive because it has a variety of excellent public and private school options and house prices are still affordable compared to the eastern suburbs,” he said.
Peter Li, managing director of Plus Agency which sells Australian real estate to Chinese buyers, said he had sold two expensive homes on Sydney’s north shore in the past week.
“Both buyers are resident in Australia and often travel back and forth on business,” he said.
‘Australia and China are their homes and their children grow up here.
“They are both renovating homes they already own in Chatswood.”
Plus Agency this month sold a house in Lindfield on Sydney’s north shore for $5.6 million to a Chinese businessman, with fierce bidding on a six-bedroom, four-bathroom home.
The high price was achieved even though the house was on a “battleaxe block”; Located behind another house with its own access road to the street.
The prospective buyer continued to increase his offer after the seller rejected his original offer of $5.2 million, made after a brief viewing.
Plus Agency this month sold a house in Lindfield on Sydney’s north shore for $5.6 million to a Chinese businessman, with bidding fierce for a six-bedroom, four-bathroom house on a battleaxe block.
“He viewed the property for an hour, made an offer for $5.2 million on the spot and signed a contract,” Mr. Li said.
‘The seller rejected it, so he made another offer for $5.50888 million, which the seller also rejected.
“He then made a final offer of $5.55 million, which the seller accepted.”
But after its sale, another Chinese buyer outbid it with a bid of $5.6 million.
“This offer came from the wife of a Chinese couple looking for a house while her husband is in China for work,” Mr Li said.
Li said Chinese buyers had more interest in homes on subdivided blocks than Australians, who valued spacious yards and outdoor areas more when paying that amount of money.
“This house is behind a long tomahawk block, which not everyone likes,” he said.
“They couldn’t sell it because local demand for this type of housing is weaker than demand from international buyers.”
A developer had bought an original house on Highfield Avenue in Lindfield for $5.926 million in August 2021, when Reserve Bank interest rates were at a record low of 0.1 per cent.
The block was then subdivided in two, producing a new house and an existing house that are now each worth a similar amount to the original unsubdivided property.
Plus Agency also sold a six-bedroom home in Chatswood this month for $6.808888 million, or more than triple the $2.15 million it sold for in May 2018.
Plus Agency also sold a six-bedroom home in Chatswood this month for $6.808888 million, or more than triple the $2.15 million it sold for in May 2018.
“This house had competitive buyers, both Australian-based and international Chinese businessmen already living in the area, if not overseas,” Mr Li said.
‘Chinese buyers like the north shore because Chatswood has the largest Chinese community in Sydney.
‘I think the majority are continental now. Ten years ago, Hong Kongers were the most numerous, but now there are more mainland residents.
“Lindfield has larger lots but is still close to Chatswood.”
The buyers of both houses deliberately offered prices with several “eights”, because the number in Chinese also sounds like the word “get rich.”
Foreigners can buy established property in Australia if they have permanent residence or are studying.
But foreigners who don’t live in Australia are only allowed to buy something new.
Permanent residents are treated differently than foreigners and do not need Foreign Investment Review Board approval to purchase new or established property or land.