Foreign investors, particularly the Chinese, in Australia have earnt themselves a reputation as being “cashed up”, purchasing property from Sydney’s Point Piper to countless off-the-plan apartments. However, this may change due to the Chinese government tightening the rules on converting money for unapproved reasons, which include purchasing Australian property.
Although the new requirements don’t officially come into force until July, already two of the country’s largest banks have started demanding that customers fill in a form declaring what their foreign currency is for, and rejecting conversions for investing in property.
For Chinese clients, buying property and borrowing to do so will do so will become increasingly difficult, and at the very least, more expensive. Yet the attraction of Australia for Chinese clients remains and has even intensified further by recent restrictions.