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Underlying Chinese property demand to remain strong

first_imgDavid Chin, managing director of Basis Point. Picture: Marc RobertsonUNDERLYING demand from Chinese property buyers will remain strong despite forecasts of instability including settlement risk, a Brisbane conference heard last night.The Annual Aus-China Investment and Economic Roundup – organised by business intelligence firm Basis Point – said property was one of five “boomlets” influenced by Chinese buyers.Some turbulence was expected in Australian property markets off Chinese buyers under pressure over financing and funding expatriation out of China, according to Basis Point managing director David Chin.“The first half of 2017 will be slow – because of the Trump effect and currency regulations – but the second half will be as before.”More from newsMould, age, not enough to stop 17 bidders fighting for this home3 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor9 hours agoChinese buyers have had strong interest in Australian property because of its “safe haven” status.Mr Chin did not expect settlement risk to be a major issue with Chinese buyers despite financing issues including local banks withdrawing lending to foreign investors.Basis Point’s “Dragons Down Under” report, released at the conference, said there were “still strong incentives for Chinese buyers to settle or offload before settling”.Apart from capturing profits from valuation increases, property was considered a safe haven investment outside of China, it said.“A small loss is not material in the overall strategy of the Chinese investor.”Settlement risk would not begin to “manifest itself” in the general market until mid 2017, according to Mr Chin.Among the biggest targets for Chinese investment were Melbourne and Brisbane, with some major room to grow in the Queensland market given its relatively more affordable pricing.last_img read more