The Great Property Sale

IMG_1228Why do Chinese keep buying Australian property? Certainly a safe haven for their capital might be one reason or perhaps its the clear skies and great life style that Australia offers. But maybe it’s just really simple, they like a deal and there is no better deal than the great property sale on offer in Sydney. Lets walk through a typical example where the Chinese purchase a prestige house.

In October 2104 a typical lower north shore trophy cost around $10m Australian Dollars. The AUD / CNY exchange rate at the time was 5.40 The purchase price for the Chinese property buyer was 54,000,000 Yuan

In October 2015 after a strong gains in the prestige market, the same lower north shore trophy home would cost around $11m Australian Dollars. The AUD / CNY exchange rate is now 4.64 The purchase price for the Chinese buyer is now 51,040,000 Yuan for that same property

In other words after a sustained boom in Sydney property prices, the Chinese prestige buyer gets a 5.5% discount on prices that their friends and fellow country men paid 12 months ago! Talk about a deal. And when looking at Commercial property and development sites these discounts lead to fantastic rates of return.

Everyone loves a discount in the property market and no one loves them more than a Chinese buyer.

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