Australian property market cooling amid slump in Chinese investment

Sydney is one of the world's most expensive property markets, but average home prices have begun to drop - down 4.2 per cent in the past year - after a dramatic 70 per cent surge over the previous five years.
Sydney is one of the world's most expensive property markets, but average home prices have begun to drop - down 4.2 per cent in the past year - after a dramatic 70 per cent surge over the previous five years.PHOTO: REUTERS

State govts' move to raise charges, curbs by China cited as factors

Chinese investment in Australian property has slumped, adding to speculation that the nation's spectacular housing boom may finally have ended.

Following moves by state governments to increase charges for overseas buyers, as well as curbs by China on outflows of investment, foreign investment in Australian homes dropped from A$72 billion in 2015-16 to A$25 billion (S$25.5 billion) in 2016-17.

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A version of this article appeared in the print edition of The Straits Times on June 08, 2018, with the headline 'Australian property market cooling'. Print Edition | Subscribe