Monday, 20 November 2017

Chinese buyers go cool on Australia homes

MON, NOV 20, 2017 - 10:15 AM

Chinese demand for Australian residential property has eased because of tighter capital controls imposed by Beijing and tougher restrictions on mortgage lending by local banks, a top central banker said on Monday.

[SYDNEY] Chinese demand for Australian residential property has eased because of tighter capital controls imposed by Beijing and tougher restrictions on mortgage lending by local banks, a top central banker said on Monday.

The Reserve Bank of Australia's (RBA) head of financial stability, Jonathan Kearns, said foreign buyers accounted for around 10 to 15 per cent of new construction, or about 5 per cent of total housing sales and around one-quarter of newly built apartments.

"Many foreign buyers come from China, seemingly around three-quarters," Mr Kearns said in a speech to an Australia-China property conference.

"Purchases of new properties by foreign buyers have eased over the past year, reportedly because of stricter enforcement of Chinese capital controls and tighter access to finance for foreign buyers."

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