Investment of Asian investors in Western Australia’s property market is on the rise, fueled by economic trends and increased affluence. The following points outline the key drivers and opportunities of this burgeoning trend.
Economic and Demographic Trends
Rising Affluence of Asian Investors in China
Despite slower economic growth in 2023, China is seeing an expansion in its upper-middle and high-income classes. This increased affluence translates to Chinese households’ ability to buy international real estate, with projections suggesting growth of 50% by 2025.
Migration Patterns
Australia is set to welcome nearly a million new migrants by 2025, of which an estimated 70,000 will be from China.
Post-COVID Resurgence
The lifting of COVID-19 restrictions has led to a spike in property purchases by returning Asian investors, particularly Chinese students.
Opportunities and Advantages
Financial Edge
The high-interest rates in Australia mean Chinese investors with ready capital have an edge over local buyers.
Dependable Investment
The Asian investors network view Australian real estate as a reliable source of long-term foreign currency income.
Market Trends and Preferences
Performance
Perth house prices experienced a growth of 0.9% this year, outpacing domestic Chinese house price trends.
Property Preferences
Chinese buyers tend to gravitate towards properties in close proximity to water bodies, renowned universities, and prestigious schools. This has led to a trend of Chinese investments in the more affluent neighbourhoods of Perth.
As Asian investors, specifically Chinese investment, continues to shape the urban landscape of Western Australia, attention is also turning to the untapped potential beyond the city limits. One of the hottest Western Australian property markets emerging from this shift is the rural market, offering unique opportunities and attracting growing interest from investors both locally and internationally.
In line with this trend, recent data from CoreLogic’s Regional Market Update indicates that among Australia’s largest 25 non-capital city regions, Bunbury in Western Australia is outpacing many with an impressive house value rise of 4.8% over the year to April. Other regions like South Australia’s southeast and New England and north-west in NSW also posted commendable upticks.