Chinese buyers will 'work around' restrictions, says agent
Investors worried about the effect of new capital restrictions in China on the Australian market can breathe easy, according to a local real estate agent.
Adelaide-based real estate agent Alexander Ouwens has disputed recent reports that foreign investment will be stymied by the tightening of capital restrictions in China, arguing that Chinese buyers will circumvent the new restrictions.
“[Chinese] nationals will generally find a way to work around restrictions by way of partnerships and joint ventures. Buyers will typically become more creative in the way they invest,” the Ouwens Casserly Real Estate director told Sterling Publishing.
Mr Ouwens said despite mainstream media reports that Chinese nationals may find it increasingly difficult to get their money out of the country, there is no real cause for concern.
“Marketplaces will always naturally find equilibrium in what is now a global economy,” he said.
“The real estate market is already undersupplied so should there be a reasonable fall in Chinese investment; national population and migration growth should level the playing field.”
Mr Ouwens said Ouwens Casserly sells 11 per cent of its properties to Chinese nationals, and approximately 20 per cent to Chinese buyers in Adelaide’s eastern suburbs.
He added that his real estate business has not seen any impact from China’s weakening yuan, “however it may affect the commercial top end of town at some point”.
Despite speculation foreign investment in Australia will be stymied, Mr Ouwens said, “the residential market will virtually stand alone from this and we foresee Chinese demand continuing”.
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