Chinese Credit Restrictions make Chinese buy more Australia Property

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China’s cabinet recently imposed new controls on the nation’s shadow-banking industry, targeting off-the-books loans.

Estimates and data compiled by Bloomberg approximate that new credit in China fell by as much as 931 billion Yuan (AU$171 Billion) in the second half of 2013, the biggest drop since figures began in 2002.

Foreign investment in Australian property continues to grow as China faces a record drop in new credit levels.

Australia represents the perfect place for Chinese investors to obtain finance for real estate purchases, and this means lenders throughout the country are seeing increased activity from foreign buyers which could continue for quite some time to come.

According to estimates by the Chinese-language Juwai web portal, Chinese investors spent a total of 5.4 billion Yuan (AU$992 Million) buying houses in Australia as of the end of 2013.

The site estimated that 63.1 million Chinese possessed the financial capacity to purchase housing overseas and that these people were conducting some 90 million searches online for housing every month.
 
Foreign investors purchasing residential property in Australia are having an increasing impact in Australia, as it is very easy for people from other countries to simply catch a flight and buy a piece a house or apartment and own it free hold.

The gradual increase in the proportion of loans arranged for investors has risen steadily in recent times. Where investors would typically account for 20%-30% of new mortgages, the aggregation groups Aviate is aligned with now suggest this proportion is just shy of 40% and could potentially rise further.

It is very difficult for Australians to buy properties in so many countries, but it is very, very easy for other counties to simply fly in, buy, and fly out again within a couple of days.