Chinese Buyers Double Down Again

Yesterday I reported on the Chinese-sponsored property bubbles in Vancouver. Previously I commented on Chinese buyers overbidding on US west coast properties.

Once again, the spotlight turns to Australia, where Chinese capital flight first started.

Capital flight out of China is immense.

Chinese Buyers Double Their Aussie Property Investments, Again

Please consider Chinese Buyers Double Their Aussie Property Investments, Again

Chinese appetite for property in Australia shows no sign of waning after buyers doubled investment in the nation’s homes and offices for a second straight year.

Spending on Australian residential and commercial real estate rose to A$24.3 billion ($18.4 billion) in the 12 months through June 2015, up from A$12.4 billion a year earlier and A$5.9 billion in 2013, according to the Foreign Investment Review Board’s annual report.

All Chinese investors in a survey conducted by KPMG and the University of Sydney want to allocate more money to Australia, a separate report showed on Monday. Real estate is fueling inflows from the world’s second largest economy, which last year overtook the U.S. as Australia’s largest foreign investor.

“Overall we are seeing a strong story of Chinese investment into Australia’s broader economy which is in line with premium products, services and lifestyle-oriented themes,” Doug Ferguson, head of KPMG Australia’s Asia and International Markets and co-author of the report, said in a statement.

Purchases by foreigners, many with a connection to China, helped drive an almost 55 percent jump in home prices across Australia’s capital cities in the past seven years as mortgage rates dropped to five-decade lows. The rising demand has triggered community concern that locals are being priced out of the property market, prompting the government to tighten scrutiny of foreign investment.

China also stepped up administrative measures in January to slow the flight of capital that Bloomberg Intelligence estimates reached $1 trillion last year as the yuan was devalued and Chinese equities tumbled.