International property buyers of Australian real estate has plunged, reports Domain (29 May 2018). The latest Foreign Investment Review Board Annual Report 2016-17 revealed that the number of approvals for foreign residential purchases fell as much as 67 percent during the last financial year – a sharp decline that is likely due to the revised rulings from both federal and state governments in Australia, including increased surcharges on foreign property investors, less favourable taxes, and a newly-introduced cap on new development sales during that period. According to Carrie Law, Chief Executive Officer of Juwai.com – an online platform specialised in connecting Chinese buyers with foreign real estate agents – this is a dramatic reversal from 2H 2016, which saw Chinese buyers investing frenetically in Australian property. “In the second half of 2016, it was like money falling from heaven for vendors and developers. In early 2017, capital controls, financing restrictions, and foreign buyer taxes reduced Chinese investment to more reasonable levels,” said Law.
