In 2013 the news in real estate was the surge in Chinese buyers in Sydney chasing harbor views, good schools, convenience and lifestyle. Since then Sydney property prices have increased significantly and the median house price is now near $1M. As a result many are now turning to Perth as an alternative place to buy. New statistics from Juwai, China’s biggest international website confirms this trend and reveals Perth city, Broome, Nedlands and Canning Vale were the top four places of interest for Chinese buyers.
While price may be a major factor in this current change a potentially more significant one is when knowledge of what Perth has to offer becomes widely known that one can expect this trend to accelerate. Why? Let’s look at just two reasons.
Firstly: the State Governments of New South Wales, Victoria and Queensland announced that they will now charge additional tax on foreign investment in residential property. In New South Wales foreign investors are being charged a 4% stamp duty surcharge from June 2016. In Victoria, foreign investors are charged a 7% tax and in Queensland foreign investors are being charged a 3% tax.
These additional taxes increase the costs of investing in these States. Western Australia does not have a tax on foreign investment in residential real estate.
Secondly: Perth has been voted the seventh “most liveable’’ city in the world by The Economist Intelligence Unit.
The index is based on lifestyle factors such as political stability, healthcare, culture and environment, education and infrastructure. The Economist Intelligence Unit says the index is helpful for global businesses.
Western Australia’s Premier and Tourism Minister Colin Barnett said: “Perth is a vibrant city with clear skies, fresh air and beautiful beaches, where people can still enjoy the benefits of a modern, sophisticated city and a relaxed lifestyle.
“When you look around the world where else would you get the kind of health care and education standards that are delivered in Western Australia”.
We at Stage Property can help overseas and local buyers from China and elsewhere in Asia. We speak the language, know Perth and have an excellent range of property to choose from.
Dr Ray Wallis Investment Consultant -BSc, PhD, MEngSc
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