Swelling crowds at Sydney Property Expo buoy agent sentiment
The appetite for residential property remains strong among Chinese buyers if the crowds at a weekend property expo were any guide.
The Sydney Property Expo, now three times larger than its past two stagings, targeted local Asian buyers looking to invest in off-the-plan projects.
Australian property is attractive to Chinese investors because it is 15 to 50 per cent cheaper than in China while rental yields are double, and Chinese investors are not only interested in direct investments.
Rongqiao Investments, via its remittance company Money Chain Foreign Exchange and RedRate Exchange, told attendees at the Sydney expo that it could facilitate investment in private residential loans that were returning between 6 and 15 per cent.
Projects from Sydney developers Meriton, Dyldam and Toplace – which sell heavily through local Chinese distribution channels – were recurring mentions at the expo. Christopher Pearce
Non-bank lending to Chinese investors and developers has surged in recent months due to a regulatory pressure on Australia banks and China’s capital transfer restrictions. Beijing has clamped down hard on citizens transferring cash overseas to buy property.
Last Friday, 40 high-net-worth Australian-Chinese migrants looking to lend about $500,000 each to residential projects attended a property valuation seminar held by Melbourne-based lender Zank & Co. Director Tiger Liu said they were sophisticated investors.
Agents at the Sydney expo were confident the housing market would continue to be strong and said settlements on off-the-plan apartments sales were humming along. Apartments which did not settle were quickly resold.
“There is no correction, the media sells negative news,” one agent who was selling houses in Hope Island on the Gold Coast said. “I don’t think the market will crash because the population continues to rise.”
Agents at the Sydney expo were confident the housing market would continue to be strong. Christopher Pearce
Most agents had a menu of apartment projects for shoppers to choose from.
Projects from Sydney developers Meriton, Dyldam and Toplace – which sell heavily through local Chinese distribution channels – were popular at the expo.
“Are you looking for an investment?” a Dentown Group agent said.
“Just tell me which suburb you want, and what criteria, and I will find you one.”
“There is no correction, the media sells negative news,” said one agent. Christopher Pearce
The weekend expo featured real estate agents, mortgage brokers and local developers including Meriton, Poly, CWG, MAB and Pellicano. Mortgage brokers and private financiers were also prominent.
Other Mandarin-speaking non-bank mortgage brokers and financiers on site included Alliance Mortgage Solutions, Award Mortgage, VIP Mortgage and Lending Choice.
The weekend expo featured real estate agents, mortgage brokers and local developers. Christopher Pearce