As of late, there has been an influx of Chinese investors keen on participating in the Australian housing market. Mainly buying for either business or personal reasons, these cast rich investors are looking at the properties in Australia because of its growth in value, as well as its affordability and availability. For a newcomer in the scene, how do you know where to find properties that suit your taste? Here are some of the best places to look at for investment when buying property in Australia.
Top 7 Chinese Investor Choices for Buying Property in Australia
Because of its booming tourism and cases of interstate migration, Tasmania is one place that Chinese investors are favoring these days. And Hobart is its top-performing city, coming back with the highest growth rate in value after hitting a low three years prior. As a city that is just learning to climb back up, people are investing on it now while the prices are still low, and the city is still generally underpriced in comparison to other major cities. It plays a large role on Australia’s shipping industry, and its own local tourism is receiving attention that it deserves. The residents here are mostly from the UK, New Zealand, and China.
The city’s rental demand is at a high right now, mostly being driven by job growth and indicating a case for strong employment rate. For hobbies and leisure, Hobart is home to Theatre Royal, the country’s oldest theatre, along with other notable theatres. The location is also a hotspot for music, as the scene is thriving in every aspect and seemingly every genre. The scene’s energy here is unparalleled. Aside from the terrific galleries and fine wineries, it is also home to Australia’s first legal casino, the Wrest Point Hotel Casino.
In no time, experts say that Hobart will be a steady competitor in the market and will guarantee consistent growth. Its performance is quite strong this year that some are even buying areas close to it in hopes of riding the city’s current hype. As people visit the city and realize its beauty and potential for a new home, the demand for housing is strongly partnered with an undersupply, which marks the values of the properties higher than the year before. This year, the median house price of a property in Hobart is just below $450,000.
Gold Coast is one of Australia’s premier tourist destinations, blessed with a balance of city sights, infrastructure, and nature and wildlife. While most Chinese investors are looking at Gold Coast for a personal retirement spot or a holiday home, it also holds a great value as an investment property. It is the sixth largest city in the country, and its growth in population and economy will guide the city’s long term plans for the years to come. While rental yields remain high and property values continue to increase, the city’s commitment in improving its infrastructures and the undersupply of quality properties will drive the long term growth in the market prices of the properties.
Its beaches are known all over the world, whether for diving or surfing. It is also home to amazing theme parks including Dreamworld, Warner Bros, Sea World, and Movie World among dozens of others. With over 500 restaurants, 40 golf courses, and numerous high-end and five star hotels and restaurants, Gold Coast is a city dazzling with value and even more potential. Its airport connects the city to various parts of the country, with services from Jetstar, Tiger Airways, and Virgin Australia. It is also a famous film production hub, accounting for 75% of Queensland’s film production since the 90s.
The city’s passion for local music, art, and sports also contributes to the area’s fame and income, as well as events like car and horse races. The city’s vibrant energy is what makes it enticing, equaled by its potential for growth. This is mainly why the city has a population of roughly 17,000 Chinese citizens, according to the last survey. It is a lifestyle and leisure hub that is also a heavily-favored retirement spot with a median house price of $620,000, up by six per cent in the past 12 months.
Like Hobart, this suburb area is showing signs of growth in property value as Sydney’s flow of movers are directed mostly here. Affordability plays a key factor here, as well as its hour-drive proximity to Sydney. Due to the flow of movers, the local economy has also benefited by having a steady amount of workers, which in turn invited more businesses.
This area gives you that unique suburb experience of quiet and security, while also being able to provide a fair amount of entertainment hubs, sports events, and a quick getaway to Sydney.
The right time to invest in Central Coast is now, while all the prices are relatively lower than in other areas. Its affordability is one of the main reasons why the area is top-searched in numerous real estate sites.
The Island is known mainly as a retirement hub, and a great one at that. With a population of just below 20,000 and a natural population cap allowing up to 30,000 only, as roughly 85% of the island are protected areas for the Marine and National Parks.
Its relaxed, sub-tropical climate invites a laid-back atmosphere, topped off by the golf properties and protected sailing and fishing for when you are cruising its beautiful waters. Its raw and untouched beauty is still under the radar as of the moment, that’s why the prices here are still relatively lower than other areas.
Here, you can purchase a waterfront property with two-bedrooms for just under $350,000. As of the moment, it is largely unnoticed by some investors and retirees, hence the affordable price. And for the atmosphere, security, and lifestyle it provides, that is a pound for pound win in investing.
People often say that Melbourne is one of the best cities to live in globally, and rightfully so. So if you're buying property in Australia, you will never go wrong in Melbourne. In the city sits the headquarters of some of the biggest companies in the country, and its diverse economy finds strength in manufacturing, information technology, and research, among others. It is also an important seat in the country’s finance, and is a globally renowned as a competitive center.
What makes Melbourne big in the property investment market is the low supply of housing amidst a spike in the demand. Interstate and international migration is a consistent factor in the city, as well as the continuous desire of foreign property buyers to buy a properties here as one of Australia’s strongest cities. It is also a constant force in the market, as it shifted from strength to strength.
During the 90s, the median would be just below $10,000, but nowadays you might find a suburb house with a price of $1M. It is the second largest city in the country, and with a growth rate of 2.4% per annum, it is estimated to grow somewhere in the vicinity of 10% in the near future. This means more demand for housing. And that growth in property value would still be supported by the city’s local economy, being the Victorian hub for recreational, administrative, and cultural hotspots. With a Chinese population upwards of 350,000, Melbourne is one of the best cities to invest in whether for business or pleasure.
Another area making a comeback in the real estate market is Sunshine Coast. The city has struggled in the recent years causing it to hit a low in the market, but it is now evident that it is recovering and making a stronger commitment for the years to come with its improved affordability and infrastructures.
Being one of Australia’s most visited tourist destinations, Sunshine Coast brings in over 3 million visitors per year, and that number is still rising. This is all thanks to its commitment to the local tourism and wildlife. The area is home to more than a dozen beaches, and tourism sights like Underwater World, Steve Irwin’s Australia Zoo, the Majestic Theatre, and the Eumundi Markets, among others. It also offers some of the region’s finest natural parks, showcasing the area’s awe-inspiring natural diversity.
As the area continues to strive for more, it is a great opportunity to invest in it now and see your seeds grow in no time. The continuous flow of tourists can be of great help in the increase of property value, and if you are looking to make great money by investing in an area with a competitive industry, this is a great choice for you.
Sydney is probably the best option in this list. Being a high ranking world city, the high cost of living in this area is quite intimidating but the same city ranks in the top globally among cities with the greatest quality of living. Sydney is living and breathing, with a steady flow of interstate and foreign migrants (with a Chinese population of more than 200,000), highly skilled workers, a booming local economy, and the seventh among the globe’s highest wage levels. This, partnered with the city’s continuing growth, means that there will always be a demand and market for such housing properties. Although it has struggled last year with a slight drop of value last year, it still boasts the same strength that allowed it to bring home a gross domestic product of AU$337M, Australia’s largest in 2013.
Sydney is a powerhouse that is seemingly built to last, which is great news for long term investors keen on seeing the values of their properties balloon in the coming years. Every cent is worth it, when investing on a giant like Sydney.
All in all, these are some of the best options for Chinese investors looking to participate in the Australian market. Always do proper research before deciding on where to purchase a property, and keep in mind the factors that might affect its value. If you think you have what it takes to make an investment now, then find the right real estate agent for you and choose your property now!