Property Investment is Changing
According to a recent Domain article, the Australian real estate market has new players. Today, mortgage brokers, accounting firms, insurance companies, migration agents and financial brokers are playing a key role in property transactions in Australia. These professionals groups are starting to become a one-stop shop for wealthy Chinese investors, connecting them to the right properties and developers in Australia.
Referral networks have penetrated the market. According to the article, managing director at CBRE residential projects, Andrew Leoncelli says referral networks have quadrupled in the last few years. They are expected to grow further – up to 10 times thanks to the growing market and changing real estate landscape.
Australia’s real estate market benefited greatly from Chinese investors. Thanks to the growth of referral networks, agents are connecting more investors to properties. One proof that real estate agents are benefitting from the surge of Chinese investment is the sale of an Australian penthouse at $25 million, according to Domain.
Such a sale is impossible to find through online ads and other postings.
“So it’s a friend of a friend, somebody who’s connected, they tap into this group of very wealthy people, they rope the idea around Melbourne. That’s how business is done in China – they take them out for dinner, they introduce them to the concept.” Leoncelli explained.
At the same time, there are also many Chinese investors interested in migrating to Australia especially when they come to retirement age. Some are even high net worth individuals. Property investing in Australia presents them an opportunity to put their money to good use while also possibly migrating to the country at some point in the future. Concerns over wealth and China’s environment like poor air quality continue to drive these investors to Australia.
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