Chinese buyers have returned to the Australian real estate market and are actively buying properties there again. This increases the pressure on prices in the local market. About this, writes Bloomberg.

Requests by Chinese buyers for real estate in Australia increased 127% in the first quarter of 2023 compared to the last quarter of 2022, according to the real estate agency Juwai IQI. Agents are predicting a further increase in interest.

“We expect Chinese investment in Australian real estate to grow by at least 30 percent in 2023 compared with 2022,” said Daniel Ho, co-founder of Juwai IQI. “Chinese buyers are back, and there will be more in the second half of the year than in the first.”

Australian policymakers, already surprised by the speed of the housing recovery after eleven interest rate hikes in a year, are likely to be concerned about this forecast. The country's real estate markets are being boosted by rising rents, limited supply, and a growing population, and the return of large foreign buyers will further increase pressure on prices.

“People still want to come to Australia, still want to invest here. Rising interest rates are not a problem, just not for international buyers from China,” said Founder and Director of the Black Diamondz Group, Monika Tu.

 Australia remains the top destination for Chinese buyers of offshore real estate. For example, in the fourth quarter of last year, China was the largest source of offshore investment in Australian residential real estate, totaling A$600 million ($400 million).

Peter Lee, co-founder of the Sydney-based Plus Agency, notes the high demand for three- and four-bedroom homes. He notes that many Chinese are returning to Australia and reuniting with their families after separation caused by the pandemic.