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Chinese interest in Australia's property set to increase

Chinese buyers have demonstrated a keen appetite for offshore property and particularly for housing in the Australian market.

Last year, the Chinese spend on property in Australia reached record-breaking numbers, but it is expected to increase further this year, reports Domain.

An industry survey looked at real estate agencies based in China and unveiled that out of the 150 asked, 149 of them expect demand to overtake the figures from 2015.

These figures are according to Investorist, which takes stock of off plan sales throughout the year. The agents who were surveyed by Investorist expect to sell up to 11,000 offshore properties to their Chinese clients throughout 2016, if not more.

Of all the properties that they are going to sell, it's predicted that around 60 per cent of these will be housing in Australia, as it's the preferred market, particularly when it comes to property investment.

This is perhaps unsurprising, considering that China as a whole is dominant with regards to investment; coupled with its increasing appetite for Australian property, it's little wonder that analysts are expecting the sales of real estate to Chinese buyers to increase.

In fact, China is currently Australia's largest foreign investor, having hit $46.6 billion (£25 billion) in proposed investment last year, as reported by the Foreign Investment Review Board.

Going back to the Investorist survey, it's risk mitigation that is seeing so many Chinese investors look outside of China and towards areas of safe investment.

The Chinese yuan is significantly devalued against the US dollar, which has seen a reduction in the country's buying power in the Americas and Britain. This is yet another reason why the Australian property market has been so attractive for Chinese investment.

Properties that are proving popular are one-bedroom apartments that are compact but still spacious, making them perfect for renting out to those looking for accommodation.

It's expected that with the sure increase in sales and the deep pockets of Chinese investors, the majority of sales will be for homes that are above $654,000.

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