Australian first home buyers, retirees and investors are findings bargains in property as Chinese investors face new hurdles in entering the market.
Restrictions by the Chinese government on money leaving the country and an increase in stamp duty across Australia have forced some foreign investors to default on property sales.
This is enabling local investors to purchase properties at discounted prices.
Australia Property Tours, which once ran bus tours for Chinese buyers to new residential developers, has now opened its doors to locals who are keen to enter the market.
Real estate agent David Beard, who operates the tours, said said a reduction in sales to Chinese buyers was creating new opportunities for Australians.
“The reality is, with some of the capital restraints getting money out of China, they have come into financial difficulty arranging settlement,” he said.
“We’ve gone to the developers that we know, saying that if we pull the bus up and you want to clear a few, what’s the sort of opportunity that you want to create?
“We’ve got $50,000, up to $100,000 off.”
The most recent quarterly figures by the Australian Bureau of Statistics show that property prices fell by 1.4 percent in Sydney, 2.6 percent in Darwin and by 0.2 percent in Canberra.
Prices rose 1.15 percent in Melbourne, 3.4 percent in Hobart and 0.7 percent in both Brisbane and Adelaide.
Louis Christopher, managing director of SQM Research said investment in Australian property by Chinese buyers has slowed since last year, when Chinese investment amounted to $45 billion.
“It’s pretty clear – Chinese property investment activity has flattened out,” he said.
“There was some evidence that locals were being crowded out by overseas investors.”
But he said although there was now less pressure from overseas investors, gradual overall increase would likely continue.
“From our view the prime influences upon the market have been low interest rates, a fairly solid Australian economy and very strong population growth rates, particularly in recent years,” he said.
“The housing market overall as slowed down and out forecast next year is the market will, continue to slow but prices will rise just at a far more modest pace.”
On the most recent Australian Property Tour, local investor Jenny Wong purchased an apartment in the inner-Brisbane suburb of Yeronga for $425,000 with a discount of $15,000.
“In an inner suburb, I think there is the potential, especially for an investor,” she said.
© Nine Digital Pty Ltd 2017