There has been a significant shift in international Chinese buyer appetites as budgets increase by more than 20 percent in less than three years.
According to Estate Agent Mandy Zhu, the reopening of borders has allowed overseas buyers to bounce back with bigger hip pockets than ever before.
“Money has lost its value, before COVID, if people were looking in the $15 million price range, they are now looking in the $20 million range,” she said.
“People are looking to invest more in the property market now because it holds its value.”
Contact Mandy Zhu
$100 million budgets
Larger homes sitting on an average of 2000sq m are most in demand, with buyers willing to stretch budgets up to $100 million.
Daniel Ho, co-founder of Chinese-based international property sales website Juwai IQI, has forecasted exponential growth to the Australian Financial Review.
“We expect Chinese investment in high-end Australian real estate to climb at least 30 per cent in 2023 compared to 2022,” Mr Ho said.
“High-end buyers are back, and more are coming.”
But one issue high end buyers are facing is demand within their price range heavily outweighs the stock.
Qualified buyers ready to pay
Tapping into her 15-years’ experience in the financial services industry, Ms Zhu is leveraging off a network of investment bankers and private bankers.
“I am receiving multiple calls a day from qualified buyers and their representatives, all saying we want to buy now,” she added.
“Buyers in China and Singapore are all asking me to find them a house, and then another one for their children.”
Local Chinese invest in brick and mortar
Similarly, local Chinese buyers are looking to upgrade from the $1 to $2 million price range, up to $4 - $5 million range, according to Estate Agent Helena Chow.
“Glen Waverley, Mount Waverley and Doncaster locals are looking to upgrade because they can see that money is better invested in bricks and mortar rather than shares and term deposits because of the lack of return,” she said.
“These families have young kids studying and can see a future in Australia, so their mentality around returning home to Asia has changed.”
After living in Melbourne for over three-decades and a background in accounting, Mrs Chow says she deals mostly with local Chinese and Asian buyers, providing advice on both local area knowledge and investment advice to capitalise on returns.
“Speaking fluently in both Chinese and English makes it easier for people to lean on me for advice on great schools in the area, the best suburbs to raise a family and assist with new migrants settling into Australia,” she said.
Contact Helena Chow.