In this television interview, David Chin of market intelligence firm BasisPoint shares his insights on the impact of recent clampdown on Chinese capital controls on the Australian property market.
Elysse Morgan from The Business explores the impact of the tighter capital controls by the government in China. The concern is for Chinese property developers in Australia and potential impact on buyers with the level of stock.
Whilst Chinese mainland buyers have made up a significant chunk of the purchasers at around 20%, David Chin points out that many of the developers have risk mitigation strategies in place so are unlikely to be impacted in the short term.
The existing non-bank lending market, a sector BasisPoint has been following with the hosting of recent industry forums, has been stepping up to fill a gap in the market with tighter lending criteria by Australian banks. The peer-to-peer market from private firms to wealthy families has also been active although there is no recorded data on the size of the market.
There is still an appetite from local buyers including Chinese living in Australia. In terms of prices of Australian residential properties, there may be some weakness but nothing catastrophic at this stage.
There has also been a move by the Australian government to increase stamp duty for overseas buyers, but as David Chin points out, in the case of other jurisdictions such as Canada, the impact in Australia to date has been minimal.
You can view the 6-minute interview between David Chin and Elysse Morgan here.
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