Chinese are top property buyers in Australia

[SYDNEY] Chinese buyers have overtaken Americans to become the biggest investors in Australian property, drawn by the nation's strengthening housing market, as their government tightens rules on buying at home.

Chinese investment in Australian residential and commercial real estate surged 42 per cent to A$5.9 billion (S$6.7 billion), compared with an 85 per cent slump to A$4.4 billion in purchases by US buyers, according to an annual investment update from the Foreign Investment Review Board on its website.

Home prices in Sydney and Melbourne, the most popular cities for Chinese property investors, rose 13.4 per cent and 11.9 per cent respectively in the year ended Jan 31, according to the RP Data Home Value Index. Chinese buyers are flocking to overseas markets to escape government measures to rein in escalating home prices, including restrictions on buying more than one home and higher capital gains taxes.