From today, the state’s Chinese community officially begin celebrating the Year of the Dog, but some real estate agents are hailing it the Year of the Deal, with the seven-day holiday viewed as the ideal time to scope out potential investments.
Brisbane real estate agents are reporting an increase in interest from Chinese buyers in the local property market, with 2018 considered to be a lucky year to invest in bricks and mortar.
Data from realestate.com.au shows Chinese searches for property in Brisbane for the six months to the end of January increased more than 66 per cent compared to the same period last year.
The most searched suburb was South Brisbane, where searches increased by a whopping 300 per cent, followed by the inner west suburbs of St Lucia, Toowong and Indooroopilly.
According to China’s largest real estate website Juwai.com, Australia is the second most in-demand country among Chinese property investors after the United States.
Juwai chief executive Carrie Law said some Chinese investors had postponed purchasing property abroad so they could buy this year instead.
She predicts a big upsurge in activity in August, because it will be the 8th month of 2018.
It has long been known in real-estate circles that an address or price that includes the number ‘eight’ — which when spoken in Cantonese sounds like the word for “prosperity” — can make a property more popular with Chinese buyers.
Melbourne is the most popular city for investors, followed by Sydney and Brisbane.
The Gold Coast has also experienced a resurgence in popularity among Chinese buyers.
LJ Hooker Sunnybank Hills partner Zora Liu said she had noticed an increase in Chinese tourists arriving in Brisbane earlier than usual this year.
Mrs Liu said she was expecting strong selling activity, describing the period as “like Christmas for Westerners”.
“It’s policy in China to have a longer holiday period over the New Year festival and many will have enough time to travel to Australia for the period,” she said.
“Earlier this week, I met a gentleman from Beijing who was intending to stay in Brisbane until New Year and he is on the lookout for property with a budget up to $2 million.
“In general, Chinese buyers don’t hesitate to spend for real estate. In China, they invest in stocks just as they do in property but, in Australia, they don’t feel as comfortable in understanding the sharemarket, especially when English is not their first language.
“That’s why property is so popular — they can see a block of land or a home and appreciate its value and opportunity.”
While the Chinese Government has restricted funds from exiting China for real estate purposes, many Chinese-based investors are still able to purchase property through funds held outside the mainland.
Mrs Liu said there were pockets around Brisbane which held extra appeal to Chinese buyers, including Eight Mile Plains, Sunnybank, Sunnybank Hills and Stretton.
In the past 12 months, she said there had been 25 house sales above $1 million in Eight Mile Plains, with all but one attributed to a buyer with Chinese heritage.
“Eight Mile Plains has a lot of large homes with luxury appointments, which is a visual sign of wealth and success; this is a common ideal for Chinese,” Mrs Liu said.
“The Sunnybank area, close to Market Square, is very popular as this is the social hub for Chinese. It’s like Brisbane’s own little Hong Kong.
“Neighbourhoods which are close to bus routes to (Sunnybank) Market Square and the city are very popular. There is a lot of multi-generational living in Chinese households so they older members of the family, or the young teenagers, who may not drive, need access to bus services.”
Mrs Liu also said school catchment areas were also an important factor for Chinese buyers.
“Anywhere around Brisbane State High and Mansfield State is always very competitive,” she said.
“We’re seeing more million-dollar sales in Wishart because parents want to push into the Mansfield (State High School) catchment area.”
Steven and Linda Pearce are auctioning their property at 10 Azzure St, Eight Mile Plains, this Saturday, hoping the Chinese New Year period will prove lucky for them.
“We knew this weekend was the start of Chinese New Year,” he said.
“It’s when the Chinese get away on holidays and like to buy property.
“It’s not number 8 though, it’s number 10!”
The couple has outgrown the five-bedroom, four-bathroom house and are looking to downsize.
KEY FACTORS FOR CHINESE BUYERS IN BRISBANE:
*Proximity to Sunnybank Market Square
This is a major social and commercial hub for the Chinese community, so properties in close range are in high demand.
*Access to bus routes
It’s not uncommon for multi-generational living in Chinese households.
Older family members and teenagers, who often do not drive, need access to public transport.
*High-end housing
Homes are a sign of wealth and success among the Chinese.
Grand homes throughout Eight Mile Plains and Stretton are of particular appeal.