The depreciating Australian dollar is making it a lot easier for Chinese investors to own Melbourne properties, as local first homebuyers struggle with housing unaffordability in the country.
This is true for IG chief market strategist Chris Weston, who studied the country’s housing market with an overseas investor point of view in mind.
“We know overseas money has been increasingly making its way into the Australian housing market,” he was quoted as saying by Business Spectator. He added that 15% of the national housing supply was purchased by Chinese investors alone in 2014.
The hot housing markets of Melbourne and Sydney were also more welcoming of Chinese investors who were purchasing around 25% of new housing stock, Weston said.
“Looking at Melbourne property prices adjusted for the strength in US dollar or Chinese yuan, one can see that property prices are actually at multi-year lows,” he said.
A separate study by Credit Suisse predicts a further $60bn will be poured down by Chinese investors in the Australian real estate over the coming six years.