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China ramps up Australian property purchases

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Chinese investors were the largest source of foreign investment in Australian property in 2012-13, according to figures from the Foreign Investment Review Board (FIRB).

FIRB's annual report reveals that $5.9 billion of purchases in Australian property emanated from China, an increase of 44 per cent on the previous year. The result eclipsed the total approvals from the Canada, $4.9 billion, and the USA, $4.4 billion.

However, total foreign investment in Australian real estate fell to $51.9 billion from $59.1 billion.

It total, Chinese investors gained approval for $15.8 billion worth of investment, trailing the USA on $20.6 billion and Switzerland with $18.4 billion (the vast majority of Swiss investment was tied to mining, probably via the Glencore-Xstrata merger).

Canada ranked fourth in terms of total investment, followed by the UK. Japan slipped to sixth on the list.

The overall value of foreign investment fell to $135.7 billion from $170.7 billion as the resources construction boom came to an end.

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Total property and overall investment levels fall, according to FIRB data.

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