AAA’s claim comes off the back of new figures from real estate firm CBRE, which found that Chinese investors account for a growing proportion of foreign real estate development in Australia. Some 30 per cent of the real estate developers in Australia are foreign and nine per cent of these are Chinese, according to the latest figures.
CBRE also found that 1,200 Australian apartments are currently either being planned, are under construction, or are being marketed by Chinese investors.
Melbourne and Sydney were found to be the most popular sites for Chinese investors. AAA’s analysis partner, Anthony Johnson, said that the Chinese are attracted to Australia as a place to invest in real estate for several reasons. Many have children studying there and investing in an apartment is seen as a good way to save cash in the short-term and make healthy returns in the longer term. The laws also entitle the owners to keep hold of a property as long as they wish, which is not the case in China. Overall though, Mr Johnson claimed that Chinese investors are attracted to real estate as an alternative form of investment as a result of the volatility of the stock markets.
“Many investors are turning their back on traditional asset classes in favour of alternatives, such as real estate, forestry, commodities and currency investments,”
“Many newly-wealthy Chinese investors want to put their cash in an asset that has lower correlation with the equity markets, protecting their cash from the impact of any further major economic turmoil,” he added.
AAA supports many kinds of alternative investments, but is particularly keen to promote ethical investments, which are both environmentally and socially responsible. It support projects in development countries, such as the forestry plantation scheme run by Greenwood Management in Brazil.
About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.
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