Perth ‘safe’ from Chinese property woes

PERTH’S booming real estate market will be safe from any jitters being felt in China’s housing market, says one of its most successful estate agents.

Harcourts Applecross principal and licensee Eric Hartanto, who recently ticked over $1 billion worth of sales and was awarded the REIWA grand master award for the ninth year in a row, said the Perth property sector was far from suffering.

“Anyone who has sold since Covid-19 hit has sold well, thanks to high demand and low supply,” Mr Hartanto said.

He said the demand from international buyers had already increased during Covid-19 as Perth was viewed as a “safe haven” due to its limited cases.

Once Western Australian’s borders reopen “we will be flooded by international buyers who want to move and live in Perth”, he said.

But looming is a potential shock to China’s economy caused by one of the world’s most indebted property developers, which some analysts warn could ripple outwards and cause the “next GFC”. 

The country’s second biggest property developer Evergrande Real Estate is struggling to repay a $400 billion debt and a trading halt was put on its shares this week after it missed a crucial interest payment. 

The company’s liquidity has been hammered by the 65 million empty apartments across China.

But Mr Hartanto doesn’t think the shockwaves will reach our shores.

“I don’t think the Chinese property market will directly affect our local Perth property market,” he said.

“The Perth property market does not have a large volume of Chinese buyers like in Melbourne and Sydney, we have a good combination of international and local buyers. 

“Buyers’ confidence is now very high, and they are investing their money back into the Perth property market,” he said.

He said Attadale and surrounding areas were still undervalued for the kind of lifestyle and amenities they offered and would keep growing stronger together with rising sales activity in the area.

Evergrande’s potential collapse has ramifications for other parts of WA’s economy though, as China’s demand for our iron ore is largely fuelled by residential construction.

by LILLI SCOTT

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