Rich Chinese investors looking to steal the luxury home deals from Singapore to Sydney

    • Rich Chinese investors are eyeing to invest luxury homes to protect their wealth from the economic fallout due to Coronavirus.
    • They are trying to buy luxurious properties across China and many other known real estate markets in Asia mostly to prevent their wealth from the negative effects of inflation and the falling value of Yuan. This has led to a rise in the prices of luxurious homes in China and has provided a bit of relief to the Asian real estate markets affected by the Covid-19 pandemic.
    • Monika Tu, founder of Black Diamondz, an Australian company that serves Chinese buyers of luxury real estate said “It’s been flat-out.”
    • Tu has sold 85 million Australian dollars ($55 million) of the luxurious property since March of which 50% of sales volume was occupied by Chinese buyers who were in Australia when the pandemic hit. This is a 25% increase in Chinese buyers from previous months in the year. These homes are located in Sydney’s well-heeled, ocean-front suburbs such as Point Piper and are price between AU$7.25 million and AU$19.5 million.
    • A gradual relaxation of virus restrictions has made it easier for rich Chinese to see the property and complete transactions in nearby Asian hot spots such as Shanghai, Seoul, and Sydney. At the same time, virtual tours and photos have proved to be enough to bag multi-million dollar deals which shows the evolution of the nature of transactions.
    • According to data from Juwai Iraqi, a real estate firm, the South Korean real estate market has seen a 180% increase in inquiries by Chinese buyers in Q1 2020 compared to Q4 2019. Inquiries dropped by 32 percent in the U.K. and 18 percent in the U.S.
    • The high-end demand in China is lifting prices and reducing declines in other markets. Prices for top-end homes in the four largest Chinese cities grew by 1 percent in April, driven by Shenzhen’s tech hub’s biggest leap in two years.
  • Even in Singapore where there is still a partial lockdown, activity is being picked up via online platforms. This month, three Chinese customers bought six apartments worth a combined $20 million in Singapore ($11 million) at Marina One Residences without any virtual tours, said Clarence Foo, a property agent with APAC Realty Ltd.’s unit ERA. One developer spent around S$12 million on three separate three-bedroom units in the same building.

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