Bailey said that while Sydney has a large contingent of Chinese buyers, especially in new construction, demand from Australian buyers remains strong. And while China's slowdown will temper wealth creation in China, it could also drive more capital into certain overseas real estate markets, as the Chinese rich look for safer investments and better returns.
"What we've actually seen is that as you get more economic uncertainty within China, the desire of the wealthy Chinese and even the middle class to diversify their investments outside of China has increased," Bailey said. "It's a bit counter-intuitive but we're seeing more demand for money moving outside of China."
Along with Australia, the U.S. is also likely to benefit from Chinese flight capital. New York is expected to see prices go up 5 percent in 2016, according to the report, while Miami will see gains of 2 percent. The U.S. may also benefit from high prices and new, less wealth-friendly tax regimes in London.
"Buyers who were looking in London are now looking harder at New York and Miami and Los Angeles," Bailey said.