Melbourne and Hobart a hit with Chinese buyers

Melbourne and Hobart a hit with Chinese buyers

17 March 2017

AFR

 

Despite slugging overseas buyers with the biggest new tax hit, Melbourne remains the most sought-after location for mainland Chinese property investment, according to new data. Hobart is also attracting a lot of interest, on the back of increased tourism to the state.

Melbourne – also the world’s most liveable city according to The Economist magazine – attracted double the number of Chinese-based property seekers than second-placed Sydney in the year to February.

This is more impressive, considering that Victoria more than doubled the foreign buyer stamp duty surcharge to 7 per cent from 3 per cent from July 1 and tripled the surcharge on “absentee landholders” to 1.5 per cent from 0.5 per cent starting in 2017.

Sydney has recorded slightly weaker interest from China.

A new Treasury consultation paper recommended changes to FIRB rules to make it easier and cheaper for foreign buyers to purchase new property.

Recommendations include introducing a “new exemption certificate” giving foreign persons “broad pre-approval to purchase one new dwelling or vacant residential block”. Foreign buyers would then be required to notify Australian authorities when an actual purchase was made.

 

Read the full article at the AFR.