A regional city near me, at the coal face (hint), Chinese 'investors' are still sitting on empty dwellings even though several coal mines have closed with several hundred jobs lost, which may explain why prices have not tanked completely. Just what their tolerance is and when to sell will be interesting to see, and will almost definitely result in a 'tsunami' of supply.....
So far we know that the faceless Chinese investors know how to buy houses. However, I'm yet to see any evidence that they know how to sell them.
View attachment 64658
Further as you can see someone buying an AU property with Yuan in 2011-12
due to currency weakening they are around 50% better off than holding Yuan
as a cash asset.
So pretty clever these Chinese are!
???????
Hope they are smarter then a duck
Frack to bunt.
Yes your right.
Seems todays buyers are the smart ones.
In keeping with the high end taking it up the @## theme, we (a group of specialist equine practitioners) have just offered 2.5m on a 4m asking price.
They haven't told us to £%& off yet. I sorta hope they don't accept, we'll get it for 1.8 next year.
Wayne was that on acreage? One of the RE guys we were speaking with in Brissy just paid 900k for 50 acres just outside town, for his horses....
FWIW, there's an entire housing estate right on the lake here that's bought and paid for, sitting almost completely empty...the thing they don't get is if they don't maintain these places they'll be rotted away to nothing by the time they go to do anything with them....
flooded every 10y?Yep acerage, Brisbane river frontage,flash as a rat with a gold tooth, only about 15 km from cbd
flooded every 10y?
Maybe, Maybe not.
If the price stop rising, Chinese real-estate buyers would start to feel the currency macro tide - No more flat lining in currency adjusted terms. If prices fall it could become a rip tide with two macros against them. How committed would they be to a losing investment?
A home-building frenzy that is shoring up Australia's economy as the mining boom ends may also be what finally takes the steam out of one of the world's most expensive property markets.
The case in point: Green Square. Nearly 10,000 apartments will be built in one of Sydney's newest suburbs in the next four years to satisfy investor demand, which has already sent property prices in the city to the highest ever. It will also add to the record 213,000 new home starts across the country amid slowing population and economic growth, prompting Goldman Sachs to warn of a supply glut by 2017.
Spot on. Starting now on both counts.......with an added supply 'tsunami'
One of China's biggest financial institutions is offering zero-deposit home loans for off-the-plan apartments in Melbourne and the Gold Coast, a practice at odds with efforts by Australian regulators to tighten lending standards and cool the property market.
Maybe no subprime lending by Australian banks directly, but it seems it is still happening through Chinese banks, with the Chinese buying a significant share of new apartments in Melbourne and Sydney.
From the AFR:
http://www.afr.com/markets/market-data/interest-rates/zero-deposit-loans-for-chinese-investors-to-spur-australian-property-market-20151025-gkhujs
So the Chinese lending stumps up the deposit and the Australian bank loans the rest. No skin in the game makes it easier for the speculator to walk away at settlement if the price did not rise.
Nothing can go wrong here at all.
Maybe the next global shock will come from China itself and it's poor and loose lending practices.
What are you on about mate.....
Perth is safe according to David Airey (perth property agent and former reiwa president).
“We are looking forward to a big jump in the market,” Mr Airey said.
“I don’t think there is any risk of a correction here.”
http://www.afr.com/real-estate/resi...to-march-across-the-nullarbor-20150929-gjxdos
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