China has emerged as biggest source of approved foreign investment in Australia. This is for the first time for China to attain such economic importance in Australia. The information came across after China splurged a record breaking US$12.4 billion on real estates of Australia in the last financial year.
As per information revealed in the annual report of Foreign Investment Review Board, Chinese investors are gearing up for an investment worth US$27.7 billion in Australia, thereby overtaking the investors from the United States who were approved to spend no more than US$17.5 billion.
However, it is important to note here in this regard, the Abbott government has legislated more stringent norms with regards to foreign investment in the residential sector of the country, following which the government also order a Chinese buyer to sell a mansion worth US$40 million that was bought illegally.
The figured revealed by FIRB tallies approved investment rather than actual investment. With regards to the United States, investments by the country have to face higher threshold compared to China as per the existing regulations. While in terms of annual approvals China has significantly surpasses the United States, it is important to note that, Japan, Great Britain, and the U.S. still have a greater accumulated investment in Australia.
The statistics revealed however, did not include the breakdown of investment in the residential sector by country. Nevertheless it revealed the value and the number of property transactions doubled from 11, 668 transactions to 23,054 during the previous year.
Meanwhile, Australia also increased the value in residential real estate sector to US$34.7 billion from US$17.2 billion. On the other hand, investment on homes which were developed newly went up by 200 per cent to US$25.8 billion.