6 November 2013 — The latest Knight Frank Global Development Insight report has revealed that Chinese investors are the most influential buyers in the global prime new-build sector.
The report, which looks at global buying trends for new build property, found that the top markets for Chinese investors were Hong Kong, New York and London.
Sarah Harding, international project marketing – network director for Knight Frank Australia said the Asian investment trend was evident in the Australian market, too.
“There is strong demand from Asian buyers across all hubs in Australia, especially in Sydney and Melbourne,” she said.
“We expect continued buyer activity from overseas, with buyers coming from the likes of China, Hong Kong, Singapore, Malaysia and Indonesia, driven in part due to tightening measures which continue to be imposed on Asian markets in an attempt to cool house prices.”
Indeed, 37 per cent of people surveyed named political and economic risk in a buyer’s home market as a key driver for international demand.
“The Report reveals that the Sydney market is currently rated as number one for buyers in Hong Kong whilst Indonesia ranks Sydney as the third top city,” Ms Harding said.
“This could also be mainly attributed to proximity, high standards of education and lifestyle options which are available in Australia.
“Offshore developers have been active in ‘landbanking’ sites over the past year, where Chinese and Malaysian developers will actively market apartments in their local markets. Over the next three years, we anticipate development activity to ramp up as the number of high net worth individuals in China is forecast to rise by 137 per cent over the coming decade.”