More than a third (37%) of Asia’s richest individuals own offshore investment property and Australia has become a favourite destination.
An HSBC survey found 9% of affluent Chinese, 19% of affluent Singaporeans and 26% of affluent Malaysians currently invested in Australian property.
HSBC defined affluent individuals as those in:
- China with more than RMB 500,000 ($A91,300) in assets;
- Hong Kong with more than $HK1 million ($A143,000);
- India with more than 2.5 million rupees ($A44,700);
- Indonesia with more than 500 million rupiah ($A47,000);
- Malaysia with more than RM200,000 ($A67,200);
- Singapore with more than $S200,000 ($A174,711); and
- Taiwan with more than $NT3 million ($A110,000).
HSBC’s Australian head of mortgages Alice Del Vecchio said many affluent Asians were looking to invest further in overseas property in the coming year, with Queensland and the ACT likely to be key markets.
Of those looking to buy in Australia, HSBC found a quarter intending to buy in Queensland, 23% in the ACT, 20% in Victoria, 18% in NSW and 16% in Western Australia.
“Sydney and Melbourne have the highest house prices nationally and have seen prices rise by 13% and 12% respectively over the past year,” Del Vecchio explained.
“Cities like Brisbane may provide investors with a better entry point into the Australian property market given house prices there have lifted by only 3.8% over the same time period.
“The increased flow of foreign investment into Australia can be a catalyst for increased construction and property development which can support the economy rebalance away from the mining sector.”
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