An Adelaide-based real estate agent has commented on recent reports foreign investment will be stymied by the tightening of capital restrictions in China.
Ouwens Casserly Real Estate director Alexander Ouwens told Real Estate Business Chinese buyers will circumvent capital flow restrictions.
“[Chinese] nationals will generally find a way to work around restrictions by way of partnerships and joint ventures. Buyers will typically become more creative in the way they invest,” he said.
Mr Ouwens said despite mainstream media reports that Chinese nationals may find it increasingly difficult to get their money out of the country, there is no real cause for concern.
“Marketplaces will always naturally find equilibrium in what is now a global economy,” he said.
“The real estate market is already undersupplied so should there be a reasonable fall in Chinese investment; national population and migration growth should level the playing field.”
Mr Ouwens said Ouwens Casserly sells 11 per cent of its properties to Chinese nationals, and approximately 20 per cent to Chinese buyers in Adelaide’s eastern suburbs.
He added that his real estate business has not seen any impact from China’s weakening yuan, “however it may affect the commercial top end of town at some point”.
Despite speculation foreign investment in Australia will be stymied, Mr Ouwens said, “the residential market will virtually stand alone from this and we foresee Chinese demand continuing”.