Chinese Investors spending up big in NZ

[donna]

Our NZ$ is the highest on record against the greenback - the Chinese are ready to spend up big here including investments in land/property......

CHINESE INVESTORS are believed to be in advanced negotiations to take over two of the largest property developments in the country – the massive Albany City project on the North Shore and the sprawling Gulf Harbour development north of Auckland.

None of the parties involved in the projects was commenting on the state of the negotiations when approached by the Sunday Star-Times last week, but reliable sources have told the paper that terms for the sale of the remaining undeveloped land at Gulf Harbour have been agreed, with a purchase price around $40 million, and that the deal is waiting only for approval from the Overseas Investment Office to proceed.

Source

Are the Chinese heading in the same direction as the USA? Boom before bust? There's some good articles on China's economy along with other global debt related posts here

Cheers,

Donna

[Shane D]

The Chinese are on a property buying spree worldwide. The impact on future NZ property prices should not be under estimated if their interest increases. A lot will depend on how welcoming the NZ government is to immigation from China. Right now I have heard the hurdles are high and many want-to-be Chinese immigrants are not getting past the NZ immigration process.

I have a real estate agent friend in Vancouver Canada. It is estimated that Mainland Chinese are invloved in around 70% of property transactions in Vancouver. Driving up prices, especially for high-end homes in the best school areas. In Hong Kong the Chinese are buying like crazy and Taiwan is just opening the doors to Chinese property investors.

If the Chinese set their sights on NZ in serious way, then you can expect it will have an impact on prices, especially in Auck suburbs in the best school zones.

Shane

[drelly]

We should remember that maybe 20 years ago, the Japanese were doing the same thing... creating the same fears.

[Bulldog]

Don't think the Chinese big investors are interested in residential property investment on a large scale. I think they are investing heavily overseas as a hedge against the fluctuations in the Chinese economy. As drelly mentions, rather like the Japanese in the 1970s. We are undertaking some work for some local clients who are talking to Chinese investors. Big money involved for the local owners, well over $100 million. Can only be good news for the economy as a whole, perhaps less so for property investors. Though I imagine soem job creation might have a positive effect for low income tenants.

[Wayne]

The Chinese need to secure their food supply so will by all the farms they can get.

[Davo36]

They are going around the world buying up resources like farms, mines (for things like steel, copper, other metals and precious minerals) and so on.

Here they probably want farms, companies, bigger buildings (like office towers). Not so much houses in suburbia.

[Shane D]

Davo, Bulldog and Drelly,

We have to define "they".

Big investors and companies are obviously buying the bigger commercial stuff.

But there is also a HUGE potential pool of individual investors that are interested in buying residential property in good areas to secure a good future life for their one and only child (one child policy).

The NZ market is TINY. Chinese investors could easily drive prices. Look at Vancouver Canada. Property prices are going crazy there due to Chinese buying residential property. And the funny thing is lots are paying $1 - $2 million for prime property and then knocking the house to build their dream house. i.e design more suited to their lifestyle and culture. Usually Chinese like the looks and feel of a western kitchen but it totally unpractical for Chinese cooking. So the new house they build a 2nd "Chinese style" kitchen i.e. closed off due to all the hot burning oil smoke, high intencity gas burners etc.

Shane

[speights boy]

China’s Interest in Farmland Makes Brazil Uneasy

URUAÇU, Brazil — When the Chinese came looking for more soybeans here last year, they inquired about buying land — lots of it.

Officials in this farming area would not sell the hundreds of thousands of acres needed. Undeterred, the Chinese pursued a different strategy: providing credit to farmers and potentially tripling the soybeans grown here to feed chickens and hogs back in China.

http://www.nytimes.com/2011/05/27/world/americas/27brazil.html?_r=1&scp=1&sq=china%20buying%20land&st=cse

[Davo36]

Interesting SB, seems Brazil are having the same concerns as us here in NZ.

The thing is the playing field is not even level. China won't allow people to buy land in China but they expect to be able to buy it in other countries. And cry foul if they can't.

[Wayne]

Interesting SB, seems Brazil are having the same concerns as us here in NZ.

The thing is the playing field is not even level. China won't allow people to buy land in China but they expect to be able to buy it in other countries. And cry foul if they can't.

And the bit I have issue with is all the people in NZ who then say it is because we are zenophobic. NZ land should belong to NZ - others can buy some economic interest in it but can't buy the underlying property. It isn't anything phobic as far as I am concerned, it just makes sense.

[TheLiberalLeft]

Ownership is irrelevent when push comes to shove. It's xenophobic, btw. Pauline Hanson's favourite word.

[Wayne]

Ownership is irrelevent when push comes to shove. It's xenophobic, btw. Pauline Hanson's favourite word.

why is ownership irrelevent?

[TheLiberalLeft]

What happens if you find petroleum, gold, silver or uranium under your land?

Or if a road needs to traverse your land and is deemed important enough?

Or if the Govt wants it under special circumstances, such as in war time.

[Wayne]

What happens if you find petroleum, gold, silver or uranium under your land?

Or if a road needs to traverse your land and is deemed important enough?

Or if the Govt wants it under special circumstances, such as in war time.

Irrelevant when certain push comes to shove.

[TheLiberalLeft]

If pedantry is your desire, yes, I suppose so.