Reuters: Rich people queued to visit, China anti-corruption push up housing price in Australia.
Date：2014/08/15
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[Sina’s finance] Hong Kong time on August 15 morning news, according to Reuters, real estate professionals said, as China continues to intensify anti-corruption efforts, more and more China's wealthy will invest in Australian real estate market.
Real estate consultant lawyer said, China customers said they have legitimate source of fund, but the fear of being involved in anti-corruption investigations. China usually investigate cronies of corruption target.
Real estate service specialize company Jones Lang LaSalle’s global capital research director Mr. Morgan Greene said: “Currently, most Chinese would like to outflow their capital from China, they think that it would not be involved in anti-corruption campaign.
China anti-corruption campaign always stare on those so called “naked officer”, referring to those government officer who’s spouse or children living oversea. These officer are considered transfer of assets through such relationship.
According to research of equity brokers CLSA, approximately ten million Chinese wealthy are interested immigrants to Australia. Analysis that homeownership in the immigrant country is a key reason for those influx of funds in Sydney and Melbourne real estate market.
Fresh air, a good education and strong legal system are China investor most concern point when immigrants.
According to , there are no much restrictions imposed by foreigner investor to purchase Australia property, foreigner can purchase of new construction building. Purchase of existing house need approval from Australia Oversea Investment Commission.
This week's data show that the first six months of this year, Australia's national housing prices rose 10 percent, and Sydney house prices rose by 15%.
The Chinese investment in Australia's housing market triggered concerns that Australians worried about being squeezed out of the housing market, especially in inner-city Sydney and Melbourne.
Australia's central bank has been concerned about rising of house prices, but so far played down the impact of China's capital on housing prices. If continue rising of house prices, the central bank had to raise interest rates even the country in situation of weakness in the economy and the highest unemployment rate.
With the end of mining investment boom, Australia has a historical low level of interest rate over the past year in order to stimulate economic growth.It also boost of housing prices, but China is increasingly seen as a major reason fueled the housing bubble.
Strong population growth, lack of new housing supply has exacerbated the problem.