Australia, Thailand, Canada and Malaysia make up the rest of the top five markets. Japan is sixth most popular, followed by Singapore, the UK, New Zealand and France.

Of the ten most popular Asian-buyer markets, six are in the Asia Pacific. The US, Canada, the UK and France are the only top-ten nations not in the Asia Pacific.

Juwai IQI’s report identifies four drivers of Asian cross-border buying demand.

Interest rates have dropped to historic lows and monetary stimulus has helped drive prices upward in many markets. Buyers worry as a result that they will miss out on future price gains. They are eager to find opportunities to benefit from price growth.

Because of the pandemic, many Asian buyers have reevaluated their cross-border real estate priorities. This is similar to changes that have occurred within local markets.

Some Asian cross-border buyers are also driven by factors in their home markets that make investing there less appealing. In China, government real estate restrictions cause some buyers to look overseas. Other countries face insufficient inventory or weak confidence. There is a large number of buyers who postponed acquisitions during the pandemic and are eager to make up for lost time.

“In 2020, the pandemic scrambled existing patterns of investment, migration and overseas education,” said Juwai IQI Co-Founder and Group Executive Chairman Georg Chmiel.

“All of these factors have a direct bearing on Asian cross-border real estate investment.”

The press release Six of Top 10 Markets for Asian Cross-Border Real Estate Buyers are in the Asia Pacific: Juwai IQI comes from Xinwengao.com press release distribution and journalist media database service in China.

This startling statistic comes from Juwai IQI’s new Q1 2021 residential real estate report, “Asian Investment in Australia.” The unprecedented report is sponsored by Kay & Burton, the leader in Melbourne’s premium real estate market.

China is not the only major Asian investor in Australia, however. Singapore, Malaysia, and Japan also lead in inbound investment. Thailand and Vietnam are prominent growth countries.

COVID-19 has had a significant negative impact, knocking Chinese real estate buyer enquiries back by some 19.2% in 2020.

Juwai IQI Co-Founder and Group Executive Chairman Georg Chmiel said:

“What you can obtain by reading the ‘Asian Investment in Australia’ report is a clear overview of one of the world’s most significant channels of residential property investment. The report includes data on total investment by source country, investor preferences, the impact of COVID-19 and the post-pandemic outlook.”

“Asian Investment in Australia” also includes an exclusive interview with Jamie Mi, Partner & Head of International Division at Kay & Burton, the report’s sponsor. Mi explains why she expects inbound investment to rebound from the second half of 2021 and Significant Investor Visas seems to have accelerated.

Kay & Burton’s Mi said:

“Thee Asian communities overseas are watching Australia very closely. There are many positive reasons they like Australia, including education, the stable political environment, and how we are handling COVID-19 thus far.

“Next year, there will be plenty of buyers coming in and plenty of offshore wealth invested in Australia. It will be Asian buyers, and also buyers from the U.S. and U.K. and expats.”

The press release Asian Investment into Australian Dwellings Far Outpaces Investment into USA: New Report from Juwai IQI comes from Xinwengao.com press release distribution and journalist media database service in China.

• 80% of foreign buyer transactions were residential and valued under $1M each
• 86.3% were new dwellings and vacant land
• VIC, NSW, QLD: these three states alone accounted for 94.6% of investment value and 92.2% of transactions.
• Foreigners buy to hold. Foreign buyers purchased $7.5 billion of property in the 12 months but only sold property worth $990 million.

Juwai IQI Executive Chairman Georg Chmiel said:

“The FIRB data is fascinating and confirms some things that we already know. Victoria is the most popular state. When foreigners buy, they very seldom sell. Foreign buyers far prefer to buy new property.”

About Asian buyer trends and the Spring Market, Mr. Chmiel said:

“The spring market is suffering from fewer overseas buyers, both pure investors and those moving to Australia to live. Our data shows there are fewer Chinese, fewer Koreans, fewer Indians looking at Sydney real estate because travel is so difficult. That’s a big problem for the market in newly developed apartments. Developer Harry Triguboff was just calling on the government to permit more migration.

“Although foreign-buyer transactions are down this year due to the pandemic, there is also good news. Australia’s reputation has been buffed and shined to a new level of polish. The country is wisely managing the pandemic and is likely to have positive economic growth this year despite the crisis. Australia does compete for investment with the other primary English-speaking countries. We believe 2020 will be a pivot point, after which demand by foreign investors, students, and residents will climb in Australia at the expense of the U.S. and the U.K.

“The good news about Chinese real estate investment is that China’s economy is doing well, buyers have money and motivation, and Australia’s reputation and desirability have soared due to its impressive response to the pandemic.

“The bad news is that transactions have dropped precipitously due to travel bans and other practical difficulties. The real estate team at IQI WA has just sold eight homes –including two houses and six new apartments– to buyers from greater China. Transactions do happen. The foreign buyers making purchases now are actually in Australia or are willing to buy site-unseen. Live video and 3D tours make many sales possible that otherwise wouldn’t happen.

“So, Chinese buying will be back after the pandemic. That’s good news for the unprecedented surplus of new housing stock, especially inner-city apartments of the kind that appeal to buyers from Asia.

“Two big questions are what will happen with Victoria and Queensland. The two states have had opposite fates this year. Will Victoria lose its top ranking with international students, migrants, ex-pats, and buyers? I don’t yet know.

“It is plausible that Queensland will see an increase in international buyer market share due to its affordability, lower congestion, and good handling of the coronavirus. Again, it’s too soon to know.”

The press release The Chinese Reaction to the Foreign Investment Review Board’s Australia Foreign Investment Report: Juwai IQI comes from Xinwengao.com press release distribution and journalist media database service in China.