The latest data suggests that the depreciation of RMB could prompt Chinese citizens to invest more in offshore assets such as overseas property so as to offset the risks of depreciation.
As the valuation of RMB fluctuates, more and more investors are recognizing the limits of the single market.
The overseas market has become familiar to everyone. More and more people are going abroad to seek new wealth growth points in the overseas real estate market.
Among all, the real estate in Australia is especially popular among Chinese investors.
Why is Australia, not the United States and Canada?
It is actually not only the ordinary investors but also the big real estate companies that will concentrate on the Australia real estate market.
Last year, Jianlin Wang, who expanded the cultural tourism industry in China, planned to build a giant theme park on the gold coast of Australia to rival Disneyland and universal studios, which is said to cost more than 1 billion yuan.
In addition, Poly real estate, Ping’an real estate, Evergrande real estate, country garden, green land and so on have already laid out Australian real estate.
Then why don't investors look at the world's leading economic power -- the U.S. real estate? Why not focus on the previously most popular destination for Chinese， the Canada's housing market? Why not study the once heated countries of Europe where you can immigrate once you buy a house? Why they are looking to the Australian property market of just 25 million people?" Use one phrase to answer these doubts, and it is fickle kinds.
The investment of property is not based on personal preferences, living environment, social welfare and other marginal factors. To determine whether or not a market is worth of investment, the key factor depends on economic development indicators.
In the past 21 years, Australia's GDP has been increasing, which has laid the most solid economic foundation for the sustainable and stable development of the real estate market.
Even when the financial crisis and the sub-prime mortgage crisis had a huge impact on the global market, the impact on the Australian domestic market was very small. Therefore, the development of its real estate market has been in a steady upward trend.
the median house prices trend in Australian
Why can the Australian housing market have such good development momentum and the ability to resist the downward pressure of the market? We can analyze from the following three aspects:
For career opportunity, the two most famous capital cities with more than a million people -- Sydney and Melbourne -- come to mind first.
Sydney is the center of Australian economy, transportation, trade and culture, and it has the largest chief port in the country with board railway systems. Its industries are mainly oil refining, machinery manufacturing, chemistry and textile. The huge career opportunities and job market have attracted migrants from all over the world and from other cities in the country, with Sydney having a population of more than 4.8 million by the end of 2015.
Melbourne has more than 4.4 million residents, and Australia's local population growth rate is already the highest among the world's top 20 countries. The price pf housing market has been driven higher by the strong demand for housing as the population increases.
In terms of the active degree in real estate, on the one hand, there is a strong domestic demand for property transactions. On the other hand, the constant influx of immigrants has greatly increased the demand for housing.
As the annual supply of new houses is limited, and the annual construction of new commercial housing cannot catch up with the growth of effective demand. The above gap shows a trend of continuous expansion, and the long-term housing supply is insufficient, resulting in a very active market transaction. At the same time, the government's housing policy encourages people to gain a loan and invest real estate in advance, which leads to the increase in the house prices.
For leverage of capital, bank loan rates hit the lowest record, making investors much more affordable.
The loan interest rate of various financial institutions and banks in Australia has reached the lowest level in the past 60 years. Some banks have launched ultra-low mortgage interest rate of two-year fixed loan, which has greatly stimulated the market enthusiasm of buyers.
From the above three aspects, it is reasonable that the Australian real estate market can maintain a reasonable value range in the current global market downturn.