Chinas $US4.6 billion ($6.2 billion)-worth of real estate investment into Australia last year will grow as the types of investors and their strategies diversify and become more specific, Savills says.
Chinas economic growth slowed to a post-global financial crisis low in the March quarter, but that reflected the countrys own emerging two-speed economy as northern-based heavy industries such as coal, steel and heavy manufacturing slowed and services industries in the southeastern coastal regions picked up, the real estate agencys latest Lookingglass report says.
At the same time, the outward investment that was 10 years ago dominated by state funds and strategic needs to build energy and transport infrastructure is being replaced by private money and commercial interests. This means the scope for Chinese investors in real estate is widening as players such as sovereign wealth funds, high net worth individuals, developers, insurance companies and even banks all look for investments that suit their diverse interests.
I expect to see continued flows into Australia, said Simon Smith, Savills Asia Pacific head of research. I dont see any sudden reversal. At the margins, some outbound capital is being marshalled, is being curtailed, but I think the overall trend is quite clear. Outbound real estate capital capital from the mainland accelerated in 2015 and has accelerated again in the first quarter of this year. I dont see it slowing down.