Chinese investment in Australian property is set to increase despite the Chinese government's attempt to restrict capital outflows, reports Domain (11 October 2017). About a quarter of new developments in Australia are being bought by foreign property buyers – 87% who come from China. Imposing higher foreign buyer taxes, however, could be risky for Australia. Jane Lu, Head of Australia for Chinese property website Juwai.com, said: “Australia runs the risk of overdoing the taxes and killing the goose that lays the golden eggs. We don’t think it passes the common-sense test to make it more difficult for foreign buyers to give their money to Australia. Foreign investment has provided huge benefits in terms of construction employment, new housing supply, and moderated price gains.”
