(Yicai Global) May 30 -- Chinese investment in Australian real estate of all kinds halved in the financial year 2016-2017 as internal capital controls and new taxes curbed demand, according to the latest figures released yesterday by Australia's Foreign Investment Review Board.
Chinese investment in Australia's real estate sector fell to about AUD15 billion (USD11 million), nearly 50 percent drop compared with the previous financial year, data from the FIRB showed. Australia's tightening of the bank lending to foreigners and China's capital outflow controls played an important role in the declining demand, the report indicated.
Total approved investment into residential property fell by two-thirds to AUD25.2 million, online portal Sina reported, citing the FIRB report.
In the financial year 2016-17, China was still the biggest foreign investor in Australia's real estate sector overall by both value of approvals, AUD 38.9 billion, fell by AUD 8.4 billion compared with the previous financial year, and number of approvals, 9,714, comprising 40 percent of the overall foreign investment applications.
Investment bank UBS Group's latest survey of the Chinese mainland investors confirms the declining Chinese interest in residential property in Australia. Many Chinese investors have turned their investment interests to Southeast Asia, Thailand and Vietnam, in particular, the survey found.
Editor: Mevlut Katik