The Motley Fool

The coronavirus could cause a Chinese stampede for Aussie property

There are reports that could cause a sharp rise of purchases for Aussie property by Chinese buyers.

I’m not surprised, if I were living in China at the moment I’d be pretty nervous about the coronavirus with the rate of infections and deaths.

According to the Australian Financial Review, the shutdown in China due to the coronavirus has caused a rush of Chinese buyers looking for a safe haven. The China property portal Juwai.com has seen a 300% increase in the number of enquiries for Australian property over the past week.

The AFR quoted a few property agents confirming that they had seen a large increase of interested buyers who are “desperate to buy”.

I’m not surprised that there’s a large increase of interest in Australia. Most Aussie cities are a long way from the action, although the world is linked with air travel.

The property market is already seeing a strong rise in property prices, particularly Sydney and Melbourne, due to Australia’s lower interest rates, relaxed lending rules and the fact that the Liberals won the Federal election last year.

Another rush of Chinese buyers would be good news for every ASX share related to property. I’m thinking of shares like property portal businesses REA Group Limited (ASX: REA) and Domain Holdings Australia Ltd (ASX: DHG), property builders like Mirvac Group (ASX: MGR), Finbar Group Limited (ASX: FRI) and Stockland Corporation Ltd (ASX: SGP), as well as construction businesses such as Brickworks Limited (ASX: BKW) and CSR Limited (ASX: CSR). Even the banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) could see an indirect benefit. 

We’ll see how the next few months unfolds, but it could be an interesting time for ASX property shares and a tough time for China. That’s why I like to stay invested in high-quality, reliable shares such as these three top stocks.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- The Motley Fool Australia's resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Brickworks and REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!