Data from international real estate group Juwai IQI found Australia has ranked as the world’s number one country for Chinese buyers for the second year in a row, with 70,000 new Chinese migrants expected in the country by 2025.

Australia has now regained its status as the top place to invest after the pandemic saw outbound travel grind to a halt, and relations between Beijing and Canberra have improved, according to Juwai.

What’s driving the influx of Chinese property investors?

China’s second-largest property developer and the world’s most indebted company, Evergrande Group, is in serious financial trouble, recently filing for bankruptcy protection in the United States. Evergrande owns more than 1,300 projects in over 280 cities across China. Meanwhile, China’s biggest property developer Country Garden is also on the brink of collapse.

China’s property sector is facing a sharp deterioration as a result of tougher banking regulations, a slowing economy and massive over-supply pushing developers to the brink. Because of this, Chinese buyers are attracted to Australia’s stable economy, attractive lifestyle and the potential for long-term returns.

“The majority of the wealth for Chinese is and always will be in property. Australia is a safe and stable investment for the Chinese which is why appetite is high,” Principal at Plus Agency and Judge at Asia Property Awards Sydney Peter Li told Your Investment Property Magazine.

“In the last quarter, out of 100 foreign buyers in Australia 56% were Chinese buyers.”

A better quality of life and getting more bang for their buck are also enticing Chinese buyers, says PRD Chief Economist Dr Diaswati Mardiasmo.

“Our property prices are still considered affordable compared to many countries, and you are getting more space and square meterage for the purchase price, compared to say an apartment or house in Beijing or Guangzhou or Shenzhen,” she told Your Investment Property Magazine.

According to the Juwai report, there are several other contributing factors behind the resurgence of Chinese property buyers - an ongoing recovery in overseas travel post-pandemic, an accumulation of savings accelerated by the pandemic, and a desire to look outward for real estate investment.

Report author and Juwai IQI co-founder and group CEO Kashif Ansari said a weak domestic market in China means cashed-up Chinese buyers are eyeing up overseas opportunities to invest their money.

“Chinese investors are drawn to real estate investment as an easily understood category that is expected to provide price appreciation and dependable long-term foreign currency income that is uncorrelated with the Chinese economic cycle,” he said.

“In this era of higher interest rates, Chinese investors with access to ready capital have an advantage over local buyers.”

Mr Ansari said Chinese nationals are also being drawn overseas by an unprecedented immigration boom in rich countries.

“Nearly a quarter of a million expats from China are expected to move to just three countries during 2023, 2024 and 2025. These countries are Australia, Canada and the United States,” Mr Ansari said.

“Chinese citizens are the world’s most numerous participants in golden visa programs. In 2021, Chinese made up 46% of approved applicants in two of the most popular programs: Greece and Australia.