Chinese Migrants Flock to Australia Amid Economic Boom, Even as China’s Property Concerns Affect Australian Dollar - Property Inc

Chinese Migrants Flock to Australia Amid Economic Boom, Even as China’s Property Concerns Affect Australian Dollar

Amid a surge in Chinese short-term migration to Australia, the economic ties between the two nations have been strengthening. However, concerns surrounding China’s property sector have impacted the Australian dollar.

As of August this year, the number of Chinese nationals taking up short-term residence in Australia reached 276,330, according to figures from the Australian Bureau of Statistics. This number is rapidly approaching the pre-pandemic numbers of 2019, which was 315,150. The data primarily reflects visa issuances for study and employment1. As Ralph Jennings notes, the boost in migration can be attributed to improved economic relations, an abundance of white-collar job opportunities, and the booming real estate market in Australia.

Kirsten Martinus, a graduate research coordinator with the School of Social Sciences at the University of Western Australia, pointed out the impact of international relations on migration trends. “When countries have better relations, you will see that in the media. That would have a huge impact on migration,” she said.

In the real estate sector, Chinese investors have shown a growing interest in Australian property. Australia’s real estate market witnessed a 34.9% increase in property prices from March 2020 to March 20221. Moreover, Chinese investors have made Australia their top choice in the global property market for the current quarter, surpassing their previous favorite, Thailand.

However, the Australian and New Zealand dollars have recently come under pressure. Stella Qiu reports that commodity prices have been affected due to concerns about China’s vast yet troubled property sector. The announcement from China Evergrande regarding its inability to issue new bonds has further intensified these concerns2.

“Yield spreads, general USD strength and CNY weakness all continue to stand in the way of a firmer AUD,” says Ray Attrill, the FX strategy head at National Australia Bank.

Despite economic challenges and the ever-changing landscape of international trade and finance, the migration trends suggest a bright future for Chinese-Australian relations, driven by mutual interests in sectors like real estate, renewable energy, and education.

References:

“Chinese migrants to Australia top pre-pandemic levels, lured by jobs, property and improved economic ties” by Ralph Jennings ↩ https://www.scmp.com/economy/china-economy/article/3235525/chinese-migrants-australia-top-pre-pandemic-levels-lured-jobs-property-and-improved-economic-ties 

“Australia, NZ dollars under pressure as China property concerns weigh” by Stella Qiu. ↩ https://www.zawya.com/en/world/china-and-asia-pacific/australia-nz-dollars-under-pressure-as-china-property-concerns-weigh-n5x0yce6 

Recommend0 recommendationsPublished in Property News

Related Articles

Responses