The Aussie suburbs Chinese property buyers can’t get enough of – as real estate expert reveals why more are heading Down Under

Australia has seen a rise in foreign investors snapping up homes across the country, and an expert has explained why buyers from China are looking to live Down Under.

According to a recent report from the Australian Taxation Office, deep-pocketed foreign investors have spent almost $5 billion on real estate in Australia in just 12 months.

The report on the Register of Foreign Ownership of Residential Land analyzed data from foreign investors from all countries in the 12 months between July 1, 2022 and June 30, 2023.

The report shows that foreign investors purchased 5,360 residential properties, an increase of 27 percent from the previous year, with a total value of as much as $4.9 billion.

Sales by foreign investors lagged behind with only 1,119 properties with a total value of $1 billion.

Daniel Ho, co-founder and group director of China-based international property sales website Juwai IQI, told Daily Mail Australia on Tuesday that Australia was the most popular destination among buyers.

“Most Chinese and Hong Kong buyers today are buying for their own use while they study, work, holiday or retire in Australia,” Mr Ho said.

“Buyers from mainland China and Hong Kong are among the most active cross-border buyers in the world… Australia is one of their most popular destinations.”

Mr Ho said investors want homes that are “suitable for their lives”, with Sydney the top city targeted by Chinese buyers, followed by Melbourne, Perth and Brisbane.

Daniel Ho, co-founder and group director of China-based international property sales website Juwai IQI, said Australia was the most popular destination among buyers from Hong Kong and mainland China

Sydney’s north shore suburbs, including Turramurra, St. Ives, Vaucluse and Mosman, were popular with buyers because they offer good schools, green surroundings and a relaxing lifestyle.

He added that Chatswood is also a sought-after destination for Hong Kong buyers as it is close to popular schools, the CBD and Chinese shops and restaurants.

In Melbourne, buyers from mainland China and Hong Kong were interested in Pont Cook, Doncaster, Southbank and Toorak.

Mr Ho said foreign investors have a wide budget, with the majority spending more than the average price for a house.

He explained that one of his clients was a young man who had worked hard and saved to purchase a one-bedroom apartment in Canberra.

The client, who works and studies at a university in Sydney, plans to live in Australia and purchased the apartment as an investment until he completes his studies.

However, Mr Ho said many families he works with are spending “tens of millions” on properties considered to be the most expensive in Australia.

Mr Ho said Sydney’s north shore suburbs were popular with buyers because they offered good schools, green surroundings, a relaxed lifestyle and close proximity to the city.

According to Mr Ho, the increase in foreign buyers in the ATO report shows that foreign investors are recovering from the Covid-19 pandemic.

He added that a significant number of people from mainland China and Hong Kong would move to Australia in the coming years.

“There is a significant wave of post-Covid migration as people take action on plans they had to postpone during the pandemic,” Mr Ho said.

“Economic trends, political conditions and government regulations and tariffs can make the numbers rise or fall, but the basic truth is that Australia is an attractive country and many people would like to live here.”

Mr Ho explained that the ATO report included buyers from across the world, including parts of Asia, North America, South Africa, the UK and Europe.

Foreign buyers from all corners favoured Melbourne as a top destination, while foreign buyers invested in Queensland over New South Wales.

“This is the second year in a row that more foreign buyers have purchased a home in Queensland than in New South Wales,” Mr Ho said.

However, Victoria and New South Wales attracted more millionaire buyers than the sunny state.

The Australian Taxation Office’s Register of Foreign Ownership of Residential Land showed Victoria was the most popular state for all overseas buyers, followed by Queensland and then NSW (pictured)

“Overseas buyers purchased 284 homes in New South Wales during the year worth at least $1 million, compared to just 200 in Queensland,” Mr Ho said.

“Victoria had by far the most millionaire buyers, with 569 foreign buyer transactions worth more than $1 million each.”

The register of foreign ownership of residential land showed that there were also prime locations for foreign buyers: Melbourne, Brisbane, the Gold Coast and Sydney.

Victoria, New South Wales and Queensland accounted for 74.9 percent of all homes purchased by foreign investors.

The average price of a home was $914,000. The report found that luxury homes valued at more than $1 million accounted for 78 percent of homes purchased.

The report did not include a breakdown of the percentage of nationalities purchasing property in Australia.