Adelaide has become popular among Chinese buyers, new data shows. Picture: Supplied by Colliers.
Chinese buyers are eyeing off the Adelaide property market in an emerging trend that could cause further heartache for locals struggling to afford a home.
After largely ignoring South Australian real estate in favour of the eastern states, searches for Adelaide homes by Chinese buyers have spiked 30 per cent in the past six to 12 months, said Esther Yong, owner of ACproperty.com.au, Australia’s largest Chinese language property platform.
Ms Yong said the surge in demand had caught many off guard, given there had been no targeted promotion of the Adelaide region.
Esther Yong, owner of ACproperty.com.au, Australia’s largest Chinese language property platform. Picture: Supplied.
However, better affordability than offerings in Sydney and Melbourne, as well as Adelaide’s relaxed lifestyle and liveability, were likely factors for the change in preferred location, she said.
A generational shift was also a significant contributor, Ms Yong said, with Chinese children living in Australia to study influencing where their parents back home should buy.
“About 10 to 15 years ago, a lot of parents were buying properties for their kids to live in and study in Melbourne and Sydney,’’ Ms Yong said.
“But that cohort of (Chinese students) are finishing school (and) they’re finishing uni now and they have a very good understanding of Australia and they’re the ones who are telling the parents where they now want to live and what to buy.
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“They know Adelaide is a better market to look at and they’re not afraid to get out of their comfort zone that, in the past, made them think they had to buy in Box Hill (in Melbourne) or Waverley (in Sydney).
“They’re much more open-minded (than previous generations of Chinese buyers) and they don’t mind looking at Adelaide.
“Private schooling in Melbourne and Sydney is hard to get into but Adelaide has got lots of good options and it’s a nice place to live – it’s quiet, it’s good to raise a family and a lot of people would be thinking they could find good work there.
“And for the price of an apartment in Sydney and Melbourne, they can afford a nice house in Adelaide.’’
Glenelg is one of the most popular places for Chinese buyers to search for property in Adelaide. Picture: Supplied.
Ms Yong said the most popular Adelaide searches were for properties in Glenelg and inner-city suburbs such as Unley.
She downplayed the effect increased Chinese demand could have on local house prices and said data was not yet available to show whether the jump in property searches was translating to actual sales.
“It’s not like everyone (every Chinese buyer) is rushing to Adelaide – but it will be interesting to see what happens in the next few years,’’ Ms Yong said.
“Chinese buyers are still not as significant (in number) as the local investors and people that are buying.
“Perhaps the more high-end properties might be a bit affected (in price by Chinese demand) but I don’t think that will be an issue (for younger, first homebuyers).
“But you never know and, if you’re a seller, you don’t want to miss that opportunity to open up to more buyers.
“You might end up finding a (Chinese buyer) who’s willing to pay a lot more because they have the financial backing, they have the capability and they really like your place.’’
Ms Yong said sellers could capitalise on increased Chinese interest by engaging real estate agents that marketed properties internationally.
Sellers should also try to incorporate Chinese principles for good luck, such as Feng Shui or the number 8, in their home and emphasis the inclusion in the sales listing, she said.
Real Estate Institute of South Australia chief executive Andrea Heading. Picture: Supplied.
“If your property (street number) has an eight in it, a Chinese buyer will like that,’’ Ms Yong said.
“I’ve even seen vendors pricing their property with a price that has an eight in it somewhere just to make it more attractive.
“I’m not going to say those things are deal breakers but they are ways to make it stand out to Chinese buyers and if it won’t do any harm (to local interest) then why not?’’
Real Estate Institute of South Australia chief executive Andrea Harding said there had been no obvious increase in Adelaide property sales to Chinese buyers in recent months.
She said SA had a relatively small market for foreign ownership compared to other states, with Tax Office data showing just 2129 SA properties were currently owned by overseas buyers.
– by Lauren Ahwan
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