Australian media forecast: RMB depreciation accelerates, Chinese buyers may once again buy Australian property

The Australian newspaper reported. The data shows that the depreciation of the renminbi may prompt Chinese citizens to invest more in offshore assets such as Australian real estate in order to hedge against devaluation risks.

However, there are many restrictions on foreign investment, such as China’s capital controls and the tax policies of the Australian and federal governments that hinder overseas buyers.

According to reports, as the Sino-US trade war has intensified, the exchange rate of the RMB against the US dollar and the Australian dollar has been falling, and the RMB may continue to depreciate.

Carrie Law, CEO of Juwai.com said: “Chinese people want to hedge against the risk of depreciation, which will definitely promote investment in overseas real estate. Most buyers believe that by the end of this year, the exchange rate of major currencies such as RMB against the US dollar will be higher than today. Lower.”

“It is expected that China’s overseas real estate investment will grow relatively slowly but steadily in the next 12 months. The risk of RMB depreciation is only one of the driving factors. In general, the demand for overseas assets by Chinese large enterprises and small family investors is still suppressed. And.”

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Law said that the Chinese authorities have been trying to relax capital controls. If they continue to maintain, overseas real estate investment may increase, including in the Australian housing market.

“According to the data, Chinese buyers’ demand for Australian real estate has been growing steadily over the past two quarters. This year’s first quarter increased by 10.1% and the second quarter increased by 4.4%. This may indicate that the demand will be even more Continued growth rate recovery.”

Shane Oliver, chief economist at AMP Capital, said: “Maybe some Chinese will buy Australian assets to hedge against the devaluation of the renminbi. But it is still difficult to see whether the funds will flood into Australia as much as a few years ago.”

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