Credit to original source: Realestate.om.au
People from Hong Kong pushed to breaking point by China’s strengthening grip on the former British territory are increasingly seeking out Australia as a potential new home, new data reveals.
Amid the introduction of a draconian new security law by Beijing, and the Morrison Government’s offer of Australian work rights with a path to citizenship for residents in the territory, interest in Aussie property from Hong Kong has spiked.
The political unrest, which dramatically escalated in June last year, boosted interest in Australian real estate by as much as 34 per cent year-on-year, on Australia’s leading property platform realestate.com.au.
The continued unrest in Hong Kong has led many locals to look overseas for their next home. Picture: Getty
Due to the latest developments, search activity from Hong Kong has peaked by as much as double that again.
Interest in property in Victoria has lifted by 25 per cent, year-on-year. In NSW over the same time frame it has grown by 36 per cent, in Queensland by 38 per cent and in Adelaide by 65 per cent.
Unusual search activity
“This basically began 12 months ago when we started to see the riots in Hong Kong and since then things have gone from bad to worse for a lot of people and then we have had COVID-19. So, that search activity keeps going up,” said REA chief economist Nerida Conisbee.
“It is a very unsettled economic and political situation. The data tells us that a lot of people there are looking to move and a lot of ex-pats are looking to come home.”
High density housing dominates Hong Kong.
Search activity from Hong Kong is characterised by notable differences from other overseas locations.
“The price point they are looking at is around $1 million and above whereas the more typical price point we get from overseas is lower at $750,000,” Ms Conisbee said.
“That could be due to the extreme pricing of property in Hong Kong.”
Australia as a safe haven
Sebastian James, a buyer’s agent with Hunter James, is witnessing this search interest translate into on-the-ground transactions.
“We’ve definitely seen a larger than normal level of inquiry from Hong Kong buyers and expats in general this year – with many citing global uncertainty as a primary reason,” he said. “There has definitely been a lot of concern on the impacts of security and privacy whilst others are just looking at Sydney as a safe haven for their money.”
Doncaster, Doncaster East and Melbourne are the most-favoured Victorian suburbs for those searching from Hong Kong.
In NSW, it is Sydney, Chatswood and Epping. In Queensland; the Gold Coast, Indooroopilly and Brisbane City are high on buyers wishlists.
And in South Australia, Adelaide, North Adelaide and Norwood lead the way.
Buyer’s agent Sebastian James from Hunter James says inquiries from Hong Kong are strong. Picture: supplied
Ericka Wong, property partner with The Agency in Melbourne focuses on the above suburbs in her role as a seller’s agent.
“On the ground late last year I was meeting lots of people at those four particular suburbs [including Balwyn] at the opens that were from Hong Kong and had come to Australia to specifically look at real estate,” she said.
“This time around we are in lockdown but we continue to get lot of inquiries.
“We have always seen a lot of activity in these areas that are attractive to people from Hong Kong or even mainland China.
“It’s close to the city, they are areas that have traditionally appealed to the Asian demographic and the schools there are very good which seems to come at a premium.
“There is a lot of investment interest and given Hong Kong is one of the most densely populated countries in the world, their real estate prices over there are crazy for cramped, high density apartments.
“For what they pay for tiny living quarters over there they can get a house with land here so in many ways it is a lifestyle move as well.”
Ericka Wong from The Agency says Australian real estate continues to appeal to those in Hong Kong.
We are marketing to Hong Kong
Australian property has emerged as a safe investment over several decades and that is even more so the case during this global pandemic.
“The other thing that is happening alongside high levels of search from Hong Kong is that a lot of developers are marketing to Hong Kong,” Ms Conisbee said.
“There is a strong appetite for Australian property over there and offshore buyers are restricted to buying new property.
“There are a lot of people wanting to get their money out of Hong Kong and relocate and Australia is a very safe economy. There is a low sovereign risk here whereas in Hong Kong there are a lot of unknowns.
“Australia looks comparatively safe to the rest of the world, including the US and the UK and that includes when it comes to how we have dealt with COVID-19.”
Residential property in the heart of Sydney is highly sought-after in Hong Kong.
Most popular suburb for Hong Kong buyers*
NSW
Sydney 2000
Chatswood 2067
Epping 2121
Lindfield 2070
Killara 2071
Gordon 2072
Roseville 2069
Mosman 2088
Carlingford 2118
Hurstville 2220
The Gold Coast is also very popular. Picture: Jerad Williams
QLD
Gold Coast
Indooroopilly 4068
Brisbane City 4000
Eight Mile Plains 4113
Sunnybank 4109
Sunnybank Hills 4109
Toowong 4066
Sunshine Coast
Rochedale 4123
Macgregor 4109
Buyers from Hong Kong are also keen on central Adelaide.
SA
Adelaide 5000
North Adelaide 5006
Norwood 5067
Magill 5072
Mawson Lakes 5095
Adelaide Hills
Kensington 5068
Unley 5061
Lightsview 5085
Goodwood 5034
Houses on generous portions of land in suburbs like Doncaster East are also appealing.
VIC
Doncaster 3108
Doncaster East 3109
Melbourne 3000
Glen Waverley 3150
South Yarra 3141
Hawthorn 3122
Box Hill 3128
Toorak 3142
Kew 3101
Balwyn 3103
*Top searched suburbs by state in the last six months to the buy section of realestate.com.au.
