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Benefits of buying property in Australia compared to China

Even though prices have been increasing in Australia over the past three years and it has made it harder for Australians to buy property, the falling Australian dollar has actually made it cheaper for Chinese investors. At the moment, the Chinese government is guiding the yuan higher as the local stock market is falling. The growing difference between the Australian dollar and the yuan will make Australian property even more appealing to Chinese investors.

1. Yield
Traditionally Australian properties can yield a return of 4-5%, compared to Chinese properties which yield only 1-2%. This forms a very healthy proposition for investors with healthy cash flows and lower out of pocket expenses.

2. No purchasing restrictions
Unlike in China where there are restrictions on Chinese residents being able to buy properties, there are no restrictions in purchasing property in any city of Australia. Another major contrast is the issue of property title. In China property owners have land rights for 70 years with no clear indicationof what happens after. However in Australia there is no such issue, upon acquiring the property land title is permanent.

3. Fairer payment system in Australia
The benefits of purchasing property off the plan in Australia is a fair efficient system, where settlement occurs after completion of construction. However in China buyers are forced to follow a strict payment term of settling 100% of the property within 1 month of contract signing.

4. Diversifying investment portfolios
With the recent well publicised reports of China’s economic slowdown, the ability to invest in Australia’s stable and efficient property market seems like an attractive proposal for future growth.