Amidst China -Australia Clash, Property Markets Suffer
The fraying relations between Beijing and Canberra are likely to worsen the Australian real estate market that relies on Chinese money for its recent vigour. For a start, the cost may be to the tune of A$715 million (US$494 million) by one estimate. The row over a host of issues, from the coronavirus pandemic to barley trade and alleged racism, will keep Chinese investors and students away from the market, analysts said, in a major blow to the Australian economy, as they account for the biggest source of inflows in major cities like Sydney and Melbourne. Asians, led by mainland Chinese and Hongkongers, were the biggest buyers of Australian real estate, amounting to US$135 billion, over the past decade, especially in Sydney, before they slumped to a 12-year low last year. Because foreign students have not been able to return to Australia to continue their studies, landlords in Sydney are losing A$5 million per month in rental income.The investment figures could weaken this year, with the market already hurt by lockdown and travel restrictions in Australia. The Australian property sector could lose A$715 million in property-related income this year.
Tags : INTERNATIONAL Property China -Australia Clash Chinese Australian property