Chinese interest in Australian property shrinks as diplomatic rift grows

Chinese buyer enquiries for Australian homes fell to their lowest in almost three years in May, according to independent data, suggesting multi-billion dollar housing demand could be another casualty of a diplomatic spat between the two countries. Data published by international property portal Juwai IQI shows enquiries slumped by more than 65% in May compared with April, when enquiries surged as Australia emerged from the throes of the COVID-19 pandemic ahead of most rival markets.

May’s slide coincided with a move by Canberra to push for an investigation into the origins of the novel coronavirus, first detected in China late last year, drawing a sharp rebuke from Beijing and threats of economic reprisals.

A prolonged slump in interest from China’s real estate buyers could spell trouble for a sector that has been a pillar of Australia’s economy in recent years. Mainland China has been a major source of foreign real estate investment, with investors pouring A$6.1 billion ($4.2 billion) into residential and commercial construction and home auctions in the last financial year alone.

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