A new report from CBRE provides the numbers to support what we all know - China is having a love affair with Australian Real Estate. The numbers show we are punching above our weight when it comes to attracting capital from China - particularly in the Commercial space. We are now seeing the impact of the relaxation of investment rules for Chinese Insurance funds in past years and I expect the recent share market turmoil in China will only serve to increase the interest here. It seems the FIRB and its ATO watchdog will be kept very busy!
Australia attracted over one-quarter of the Chinese capital that flowed into global real estate in Q1, 2015 – with Sydney and Melbourne the primary targets, according to a new CBRE Viewpoint. Chinese capital flows to global real estate surged from US$1 billion in 2010 to US$10 billion in 2014. Australia attracted 15% of this investment last year and over one-quarter of the US$4 billion invested in Q1 2015 – extremely high weightings relative to the size of the local economy, which is under 2% of global GDP. CBRE’s Head of Research Australia, Stephen McNabb said, “Capital flows from China are complemented by growing numbers of Chinese tourists, students, settlers and an increased bi-lateral trade relationship. Australia competes for capital with other markets globally, however the aforementioned factors appear to provide a longer-term underpinning for the capital flow now being experienced.”