Lifestyle and affordable property are bringing increasing numbers of mainland Chinese buyers to parts of Australia beyond the capital cities.
Eric Qiu and Natalie Kong are both from China, but it wasn’t until they met at the University of Newcastle that they fell in love.
Now they work as programmers and live in a new, $500,000 five-bedroom brick home in Cameron Park, in Western Newcastle. They have friends, like them under 30 years old, who are also buying homes in Newcastle, in the $250,000 to $750,000 price range. Compared to Newcastle, Mr. Qiu told the Newcastle Herald, in Sydney “the house prices are higher” and “the traffic worse.”
Lifestyle and affordable property are bringing increasing numbers of mainland Chinese buyers to parts of Australia beyond the capital cities. Australia is the second most popular country for real estate buyers from mainland China. The capital cities receive most of this interest, but they are not the whole story.
Following are some popular noncapitalcity destinations for mainland Chinese buyers who are searching for property on Juwai.com. Like Mr Qiu and Miss Kong, they are looking beyond the capital cities.
Hot Regional Cities
1. QLD: Gold Coast
2. NSW: Newcastle
3. VIC: Geelong
4. TAS: Launceston
5. WA: Mandurah
Source: Juwai.com site activity data, 1Q 2015.
Many small and medium developers from China are also buying in regional areas and providing new homes to underserved areas. The benefits of Chinese investment are clear: tax income, jobs and new construction. That’s why many destinations have a strategy to attract Chinese investment to their areas.
The Gold Coast is relying on Jet Star’s new direct toChina flights from its airport, with Geelong hoping for its own direct flights within the year.
Newcastle longterm leased its Port to a consortium that is half-owned by a Hong Kong-based Chinese bank. And Townsville wants to embed itself into China’s “Maritime Silk Road.” Success would boost exports from its port – direct to southern China.
Perhaps the greatest lesson is that towns can improve their standing with Chinese buyers. Most regional destinations are simply unknown in China, and some smart and persistent marketing on their behalf could generate new real estate and business investment. Investment destination marketing is an effort that can be undertaken by the local government, or even property marketers like real estate agencies and developers. It needn’t cost much.
Let’s see what you can do to improve your city’s ranking with buyers from China.
This story brought to you by RE Talk Asia.