Earlier this month, Bloomberg reported that Chinese buyers have overtaken Americans to become the biggest investors in Australian property, now, the real estate companies are trying to make Australian properties even more viable with options like Bitcoin. This is happening when China is strengthening the housing market, and putting restrictions on home buying.
An established real estate company in Sydney, Forsyth Real Estate will now accept property deposits and payments from sellers in Bitcoin to lure business from Chinese home buyers. The recent trend among the Chinese that shows that they are more willing to invest outside the country, though there is a concern for the national government; it’s an opportunity for Australia.
The recent data from the Foreign Investment Review Board show that Chinese investment in Australian residential and commercial real estate surged 42 percent to A$5.9 billion ($5.3 billion) which when compared with the US is far better as it fell 85 percent to A$4.4 billion. Chinese investors are willing to buy homes in posh localities in Sydney and Melbourne despite the hike in the cost.
In the data released by the RP Data Home Value Index (RPAUMED) Chinese buyers are flocking to overseas markets like Australia so that they can escape government measures to rein in escalating home prices. The government of China put some restrictions like limits on buying more than one home and higher capital gains taxes, etc.
Win-Win Situation for Bitcoiners in China and Real Estate Companies in Australia
However, such restrictions on the part of Chinese government on their citizens are prompting them to invest elsewhere and for them Australia has emerged as the prime choices for various reasons like better living standard, environment, less legal restrictions, etc. At the same time it has generated golden opportunity for real estate companies in Australia to lure more investment.
Australian real estate is gaining also because the Australian dollar continues to fall and that puts investors at better place. Forsyth Real Estate which announced that it would be accepting Bitcoin from sellers and buyers is one such development that was expected. Spokeswoman for the company Hayley Johnston said that there is no deposit yet.
However, she hopes this will end soon and the company will get better response from Chinese investors who are willing to use their Bitcoin. She can hope for better response, particularly after the warning issued by the Chinese central bank to Bitcoin users. There are fewer avenues where Bitcoin users in China can use their digital currency.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org