Deep-pocketed Chinese property buyers are now more likely to search for homes in Australia than in most other countries, according to new figures from Juwai IQI, as China’s domestic property market slows.
Australia ranked as the second-highest destination for inquiries on the Chinese-language listings website among homes priced at US$5 million-plus ($7.78m) in 2024, up from fourth place in 2023.
In contrast, the US fell from the top spot to seventh, while Thailand claimed the number one position in 2024, Domain reported.
Kashif Ansari (pictured), Juwai IQI co-founder and group chief executive, said Australia had climbed the rankings due to its strong fundamentals.
“The move reflects long-term realities like strong schools, political calm, lifestyle appeal, and a soft Australian dollar,” Ansari said. “The Australian dollar fell more than 5% against the yuan in the first half of the year, so buyers got more value for their money.
“Chinese buyers want schools, sun, and stability, and the lucky country delivers all three.”
Survey data from Juwai IQI revealed that most wealthy Chinese buyers were seeking homes to live in, not just to invest.
“Based on a survey of most buyers who make an inquiry on the site, 94% were looking for homes they or their family would use, but only 6.5% said they were buying strictly for investment,” Ansari said.
He added that more buyers were expected to target neighbourhoods near leading international schools in the future, Domain reported.
Despite higher inquiry levels, official figures showed a decline in approved real estate investments by overseas buyers, as new taxes and restrictions bite.
Buyers who are not Australian citizens or permanent residents face tough restrictions.
Temporary residents are restricted to purchasing new or off-the-plan homes to boost housing supply, while a new federal ban on foreign purchases of established homes, effective from April 1 to March 31, 2027, aims to ease housing pressures and is expected to free up approximately 1,800 properties annually for local buyers.
Foreign Investment Review Board data showed the number of approved residential real estate investments fell by 15% to 5581 in FY24. The September quarter alone saw a 6.3% decline compared to the previous quarter, Domain reported.
Monika Tu, founder and director of Black Diamondz Group, said lifestyle factors continue to attract Chinese families to Australia despite the challenges.
“It’s such a multicultural country and they feel welcome,” Tu said.
She added that the appeal includes a stable economy, minimal time difference with China, Chinese food options, and vibrant social activities in cities like Sydney.
However, Tu noted that surcharges such as the 9% stamp duty surcharge in New South Wales and 8% in Victoria were barriers.
“A lot of people are looking for a permanent home,” she said. “Before, it was maybe an investment opportunity. But investing is too expensive because of all these surcharges. A lot of them are living here, we see families moving their whole family back.”
In Melbourne, Jamie Mi, Kay & Burton partner and head of international division, said the weaker Australian dollar had effectively offered a discount to international buyers, attracting interest beyond China.
“Most of the transactions that we’ve done with top-end property are with those who’ve got permanent residency,” she said.
Mi said buyers were now coming from Vietnam, Singapore, Malaysia, Japan, and Korea, not just mainland China or Hong Kong.
Helen Yan, principal and director of Ray White Balwyn, said the recent end of the Significant Investor Visa and the new ban on temporary resident purchases had changed the buyer profile, Domain reported.
“We’re still selling, still quite strong, but [to] local Asian buyers – they’ve got permanent residency,” Yan said.
Yan noted that proximity to private schools remained a major motivation for buyers.
“The Boroondara area, because they’ve got a lot of private schools, that’s what motivated people to buy for kids. It’s very convenient,” she said.
