Chinese regulators have brought in new restrictions on corporate investment overseas and it might have an effect on new developments in the Australian property market.
The restrictions on outbound investment put real estate on a ‘restricted’ list and will mean more scrutiny for Chinese investors looking to invest in Australian projects.
Paul Schroder specialises in Chinese acquisitions at King & Wood Mallesons and gave his thoughts on what the new restrictions would mean for the Australian property market to the ABC.
“To some extent there are winners and losers – it remains to be seen exactly how it affects real estate investment, which has already slowed down since restrictions last November,” he said.
“The clarity that regulators are now giving can only benefit Australian transactions because they are more likely to compete, people are more likely to be open to dealing with China and the timeframes are likely to be more reasonable.”
The Chinese Government is cracking down on overseas corporate investment due to concerns about the value of their currency and capital flight.
