New wave of foreign investment

By James Mitchell

Changes to China's domestic policy may result in over $75 billion of additional foreign capital being invested in Australia’s property market, according to the predictions of a major property group.

The loosening of China’s capital export restrictions may result in a fresh wave of Chinese money hitting Australia’s property market, according to property search giant

The Chinese government’s scheme to begin allowing citizens to invest directly in overseas markets, including Australia, is known as QDII2 and was announced in May this year.

Whereas the first scheme was limited to institutions, QDII2 is open to individual investors and has the potential to significantly disrupt overseas property markets. estimates QDII2 – if rolled out nationally – could theoretically deliver as much as US$2.3 trillion to international residential real estate markets alone.
“The likely amount is probably closer to US$661 billion,” Juwai’s co-CEO Simon Henry told Smart Property Investment’s sister publication, The Adviser.

“The latter figure depends on a reasonable estimate that wealthy Chinese individuals allocate approximately 10 per cent of their total assets to international real estate, both commercial and residential.”. estimates that the United States will see the greatest share of new investment, with $109 billion, followed by Australia with $76 billion.

Mr Henry said that, according to data from, Chinese interest in Australian property is up 35 per cent month-on-month.

“There's a large degree of monthly variation in the data, but the trend seems pretty clear, and it shows a steady and stable increase over time,” he said.

"Chinese buyers are getting more and more comfortable. Some are seeking bargains by looking at Brisbane instead of Sydney and Melbourne. Others are doubling down on the two big cities. Overall, the market continues to grow as new Chinese buyers begin to participate in international property investment for the first time.

“There is huge growth ahead as China liberalises its capital export rules."

Read more: 

High-risk postcodes revealed 

8 steps to avoid being sued by your tenants 

Rent growth slowest on record 

Think before you sign 

More action on property spruikers needed 

Rising house prices won't make Australia better off 

New wave of foreign investment
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%