Overseas insurers target Australia

Overseas insurers target Australia

Overseas insurers target Australia

While insurance professionals clamour to buy shares in newly-listed Steadfast, Chinese insurers are increasingly investing in Australia’s lucrative real estate sector thanks to regulations limiting domestic investment and new laws encouraging overseas business.

China's share of foreign direct investment in Australia tripled between 2007 and 2012, underpinned by a strong interest in real estate and suggests it is a lucrative market that insurance professionals closer to home should also tap into.

Major Chinese insurance companies have been seeking offshore investment opportunities since the Insurance Regulatory Commission lifted its restriction on them investing in overseas property last October.

Chinese regulations limiting the quantity of property purchased domestically, combined with the Chinese Government's new laws encouraging offshore investment, have resulted in record activity by Chinese investors in the Australian market.

"In 2012 Chinese outbound property investments around the world set a new record of around US$4bn, a trend that is continuing into 2013," said Malcom Tyson, state CEO, NSW for Colliers International.  "Their appetite for Australian real estate assets has grown significantly due to the relatively sound Australian economy, close proximity to China and regulatory changes from both the Chinese and Australian governments which have made it easier for them to invest their wealth in Australia."

2 Comments
  • two cents worth 2/10/2013 9:48:28 AM
    this should not be allowed, they are driving the prices up on properties / houses, stopping our first home buyers from affording their first home, our government should be encouraging Australians to invest in Australia.
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  • Greg Cottrell - Insurance Professional Dinosaur 3/10/2013 1:52:20 PM
    This article is only scratching on the surface a major issue facing Australia and its sovereignty.
    It is the rural and industrial sectors that are being snap up at liquidation prices - in huge proportions particularly in rural Australia.
    Asian Countries such as China, India & Indonesia cannot produce enough products to feed themselves, so instead, they buy Australian land to produce the food they need themselves using their labour, their ships, their companies who have been given a tax incentive to operate here. What's in it for Australia? Australian primary producers should be reaping the benefits of a global demand.
    The Live cattle ban last year for political gain is a classic example which has destroyed the cattle industry in the north of Australia, that still has not recovered or likely to in the near future.
    Our Seafood industry is being reduced to a point where they can only catch enough to export overseas at better prices and Australians have eat filthy farm produced foreign seafood as a result of Green Politics based on flawed northern hemisphere science.
    These are only 2 industries - many others in Australia are under the same pressure.
    Why has this been allowed to happen, you might ask? Our previous government in collusion with the Greens/Independents and the Banks set out to destroy the rural industry sending our home grown producers broke and then the banks cash up selling off the assets to foreign investors because they refuse to back Australian businesses - the politicians for political idealism and self-interests and the banks because it is all about the profit NOW.
    Let’s hope the new government has a bit more sense and start backing Australians producers and manufacturers to become the food bowl of Asia and not just a Landlord. Are you willing to tell them or wait like everyone else and drown out by the radical left wing loudmouths who dominate the mainstream media and political discussions.
    We saw in the eighties & nighties what Japan did to our tourism industry when Australia was the favourite destination of a cashed up Japanese society - where are they now? Are we stupid enough to let this happen to our only surviving wealth - our natural resources and the massive amounts of fertile land to produce food, surely not, you would think?????????????
    I am but just an Insurance Dinosaur....!!
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