Trump Influencing Housing Down Under
US President Donald Trump’s trade war with China could have unintended consequences for the Australian housing market.
The United States currently ranks as the most popular destination for Chinese real estate investors but moves by Washington to slap tariffs on Chinese exports could drive a shift in investment patterns.
Housing experts said many China-based investors may shirk American properties in favour of those in other destinations, with Australia remaining one of the more popular choices.
It would reverse a trend of waning Chinese interest in Australian real estate, which has become a less popular choice since the federal government began imposing higher taxes on foreign property buyers. Before the changes, Chinese investment in Australian real estate was high and one of the drivers of property booms in Sydney and Melbourne.
How the Chinese government react to foreign currency exchange has immediate flow-on effects for Australia. Education is the main reason the Chinese like to invest in property outside their nation, migration comes in second and asset appreciation comes in third.
One consequence of Donald Trump’s trade war with China would be that fewer families would want to enroll their children in an American college, removing the primary motivator for a US home purchase. Australia would potentially benefit from this fallout.
The US-China trade war has been raging for months and President Trump and his Chinese counterpart Xi Jinping recently raised the stakes.
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The above information has been sourced from Realestate.com.au. To read the full article CLICK HERE.