Wealthy Chinese property buyers are beginning to flee the Australian market, according to an international author and economist.
American author Harry Dent – whose latest book The Demographic Cliff predicts an economic downturn in the next few years – met with Residential Property Manager’s sister publication InvestorWeekly to discuss his work.
According to Mr Dent, a survey conducted by Bain & Company – a global management consultant – shows that 60 per cent of wealthy Chinese are planning to move out of the Australian property market.
“You can’t have your wealthiest people dominate 50 per cent of net worth and 60 per cent of real estate,” Mr Dent said.
It will be the busting of the China bubble that causes Australian equity and property prices to collapse, not the demographic trigger, Mr Dent said.
“Japan was burst by high prices and a demographic downturn, Germany is going to be hit by that, the US bubble got triggered by demographics,” he said.
“Not for Australia – it’s your trading partners in your region. Especially China.”
Mr Dent’s outlook comes as a number of Australian real estate companies seek to enhance their reach in China via property listing websites, including REA Group.