Edited by Nelly T.
Investors are taking advantage of the lower Australian dollar leading to Chinese investment to reach its second highest level in 2015 since its peak year in 2008. Chinese investment in Australia has grown 60% to $15 billion as investors continue to buy real estate and expand into new areas such as healthcare.
According to the KPMG and Sydney University’s joint report, investment in real estate continues to dominate, accounting for 45% of total Chinese investment in Australia or $6.85 billion.
Australia is only second to the United States when it comes to preferred foreign country’s for Chinese investors, in 2015 China invested $US118 billion – up to 14.7%.
The report claims much of the investment in Australia can be attributed to seven immense deals most worth more than $500 million, with four well over $1 billion.
65% of all deals were worth less than $100 million.
Chinese investors, after real estate, seemed to favor these sectors; Renewable energy (20%); Healthcare (17%); Mining (9%) where Chinese investment seems to be turning to non-ferrous metals, including gold, lithium and copper; Infrastructure (3%); Gas and Oil (3%); Agribusiness (3%), which showed substantial growth in 2015, with 12, deals totaling a worth of $375.2 million in sectors including dairy, beef and cotton.
‘From an industry sector perspective, Chinese investment in Australia now reflect the new normal: China’s focus on middle-class consumption – premium quality health, lifestyle and services,’ the report said.
NSW claimed 94% of the total real estate investment.
The attention for Chinese developers seems to be on long-term development projects, including residential, office, retail and hotel projects.
NSW attracted the most Chinese investment (49%), followed by Victoria (34%), Western Australia (less than 1%).