As Australian Financial Review relates, the “phenomenal” influx of Chinese money into the local residential property market could be the best thing that has happened to the local economy as it struggles to make its difficult transition from an unprecedented mining boom.
The demand from foreign investors for Australian bricks and mortar is set to intensify for at least three years, driving a boom in apartment construction activity and boosting the bottom lines of listed companies such as Lend Lease, Mirvac and Goodman Group, according to research by CLSA.
Around 10 million of the wealthiest Chinese families, or around one in seven, are interested in migrating to Australia, according to a survey conducted by the broker. And home ownership in a desirable destination country is “a key reason” for the flood of money coming into the Sydney and Melbourne property markets, conclude the broker’s analysts.
Not all of those 10 million households will have the financial wherewithal to ultimately act on their desire to relocate Down Under, but it is representative of a powerful trend.