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Sydney’s Falling Auctions Have Limited Impact on Chinese Buyer Activity
Brief:Slowing clearance rates in Sydney will not deter offshore Chinese buyers, who remain confident in the local property market.
The latest figures from a property information, analytics and services provider indicate that while last week’s clearance rates showed a spike up to 60.3 per cent from 55.2 per cent the previous week, this is still pale in comparison to the 74.5 per cent recorded over the final week of 2014.
 
Esther Yong, director of a Chinese-language real estate portal based in Australia, said this was not affecting offshore Chinese buyer confidence in the Sydney property market.
 
“Overseas Chinese buyers are generally not affected by this sort of news as this type of news takes a while to be reflected to them [as this is] not often reported in Chinese media,” she said.
 
Ms Yong also attributed this to their foundational reasons for buying the property in Sydney, including buying for their children’s education and migration — reasons which differ from local buyers.
 
“A couple of weeks of low clearance rates aren’t going to worry them.”
 
While lower clearance rates had not discouraged offshore buyers, Ms Yong noted that local Chinese investors were taking a step back.
 
“Local Chinese buyers are definitely savvier when it comes to this news, some of them we’ve spoken to do think that it’s a good time to slow down a bit and see how the market reacts in the new year.”
 
This was not seen in Camperdown, where a two-bedroom terrace on 8 Eton Stwas sold under the hammer last week for $1.245 million to a local Chinese couple looking to invest.
 
A buyers agent specialising in transactions with Chinese buyers, who wished to remain anonymous, agreed the impact of slow clearance rates on Chinese buyers was limited.
 
“I don’t think it’s too much of a concern,” he said.
 
“Clearance rates are down as it is close to holiday season and in addition, clearance rates are only an indicator as many of the passed-in properties sell not long after.”
 
The buyers agent said the “substantially smaller commissions” offered for new Sydney units compared to other markets were a reflection of the true value of the property, as there was no need for huge incentives to offload the supply.
 
“Looking at the new apartment market, Sydney is definitely still seen as the preferred option for many investors over Melbourne and Brisbane where oversupply may be an issue.”

dailytelegraph.com.au
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