Locals priced out by $24b Chinese property splurge

[muppet]

Locals priced out by $24b Chinese property splurge

Date March 5, 2014 - 5:13PM
Max Mason

Business Reporter




Buyers at a display centre. Photo: Janie Barrett

• China's property splurge: who are the winners?
• Money talks: banks offering cash to entice customers

Close to one fifth of new properties in Sydney are being bought by wealthy Chinese investors and the flood of money is set to continue.

A generation of Australians are being priced out of the property market.

Using data from the Australian Bureau of Statistics and the Foreign Investment Review Board, Credit Suisse estimates that Chinese buyers account for 18 per cent of new property purchases in Sydney, and 14 per cent of the supply in Melbourne. This does not include second-hand homes.
Chinese buyers are keen on east-coast property.

‘‘A generation of Australians are being priced out of the property market. Many face a life time of renting,’’ Credit Suisse analysts Hasan Tevfik and Damien Boey said.
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There are currently 1.1 million millionaires in China who could easily afford properties in Australia’s two most expensive markets, Credit Suisse says in a research note.
Wealthy Chinese buyers have purchased $24 billion of Australia housing in the past seven years, and over the next seven years an additional $44 billion will be spent on residential property, Credit Suisse estimates.
Chinese top the list of foreign investors in Australian residential property.

There was $17.2 billion worth of approved residential property investment coming in from overseas in the year June 30 2013, down from $19.7 billion in the previous period, according to the Foreign Investment Review Board.
Of the 2013 total, $5.6 billion was approved for residential properties in New South Wales.
That number may seem large, but across the whole property market the effect dissipates.
There is, on average, a 6 per cent turnover annually in Australia’s property, according to the Reserve Bank of Australia.
The total value of Australia’s property market is $5.02 trillion, according to the ABS, so yearly turnover in the housing sector would is roughly $360 billion.
Chinese buyers are currently spending $5.4 billion a year on Australian properties, Credit Suisse said, with the split relatively even between new settlers and others, which include investors, developers and temporary residents.


Read more: http://www.smh.com.au/business/prope...#ixzz2v4iCTxTX

[propertysearch]

The worst thing that both sides of politic have done in Australia is to sell its FREEHOLD AGRICULTURAL LAND TO FOREIGN GOVERNMENTS. The Chinese are picking off the best and future Australians will be going hungry as the Chinese will be putting THEIR FOOD onto their own boats and taking it back to China. No tax paid because not sold in Australia.
Other countries strictly forbid foreign nationals to own farming land. none that I know of permit foreign governments to own land.
We need to use the word TRAITORS to describe our politicians as there has never been a amndate of any sort to sell farming land to foreign governments. Sadly the population is too stupid to put an end to it and the media appears to be in bed with the culprits, one of whom is reputed to be an ex prime minister.

[eri]

.
Other countries strictly forbid foreign nationals to own farming land. none that I know of permit foreign governments to own land.

you should do a little research and back that up

- there are about 130 countries in the world

which ones ban land sales to foreigners that also don't also ban land sales to locals

ie my understanding is that communist china even bans ther chinese from land ownership

- virtually all foreign gov. own land in most other countries, the land they put their embassies on

that's not what you mean

but what do you mean?

and where are the examples or links?

does it count if the land is owned as a 50/50 joint venture with a local?

what about a 10/90 or 90/10?

the devil's in the details

as labour are discovering with their cgt

[propertysearch]

You are sounding like a self interest real estate agent. These folk have only one interest: their bank account.
Lets get some runs on the board. New Zealand does not allow foreigners to buy its farming land and certainly does not entertain FOREIGN GOVERNMENTS doing the same. IT IS ILLEGAL....and always should be.
Your understanding is clearly limited and you need to fast forward 100 years to understand the reason why selling ones ability to fedd oneself is stupid....no matter which supposed academic comes up with a reason why it is the best thing since sliced cheese. These people are either paid stoolies or just plain stupid and their views are not worth the paper they are written on.
You talk about "joint ventures". With all due respect the Chinese government is not intersted in a joint venture. It is wanting land to grow food on for its own population and none of this food is going to be available for (hungry) Australians in the future. The Chinese are also buying up Australian ports, supposedly so that that control the movement of THEIR GOODS. Add to that a high level of mechanisation and you have a ocmplete picture of what is in this for Australians: NOTHING other than the initial sale price. This will also hit the dumb (and unpatriotic) real estate industry who will never again get to resell the same blcok of dirt.
Your blog is ignorant crap may friend. Go and think about where selling your farmland to foreign governments is heading. It aint pretty and no amount of politically correct bulldust can change that.

[Maccachic]

Lets get some runs on the board. New Zealand does not allow foreigners to buy its farming land and certainly does not entertain FOREIGN GOVERNMENTS doing the same. IT IS ILLEGAL....and always should be.
.

Oh realllly???

[propertysearch]

Please tell me if NZ has sold its farming land to foreign governments. 10% gone in Australia....and the poliies are not releasing the real figures.

[Maccachic]

Please tell me if NZ has sold its farming land to foreign governments. 10% gone in Australia....and the poliies are not releasing the real figures.

I don't know if they have sold to Govts but I personally know of a number of Farms owner by Italians and Aussies.

[propertysearch]

The issue in Australia is that BOTH sides of politics ARE SELLING TO FOREIGN GOVERNMENTS. This is totally different to selling to individuals or companies and foreign governments are not buying for investment purposes but rather to shore up their own future food supplies.
Whilst I got a bit of a serve above I fear where this is going to end up when Australia has a population of 100 million (hungry) citizens with their food producing land in the hands of foreign governments. And if you think that China will ever give it back then forget that one as this sort of policy comes with a war attached. A great way to treat your descendants.
So glad that NZ does not elect idiots of the magnitude that we do. They all need to be shot. I'll be coming to live in NZ when it gets too bad so look out for the Aussie accent guys.

[Maccachic]

I agree land should be owned by Citizens.

[propertysearch]

Better than having a war. Any day.

[eri]

should nz'ers + australians

who own land overseas

be forced to sell that land and

instead buy in nz and oz?

[Davo36]

That's a straw man argument eri because no one is suggesting that foreign owners here would have to sell to kiwis.

[eri]

newton's third law

every action has an equal and opposite reaction

if nz were to ban foreigners owning land here

it would be logical to assume that at some stage in the future foreigners would ban nz'ers from owing their land?

it might not effect you directly but it would certainly affect nz companies that own land overseas

is that something worth considering?

[propertysearch]

Good argument eri. My argument is not against (some) foreign investment. It is against going overboard and especially selling to foreign governments.
In relation to Aus/NZ we are sort of related (apart from the rugby). Kiwis have invesments in Oz and Australians have investments in NZ. It has worked well for the most part.
So what is your point?

[eri]

i don't know what the answer is either

but i know you can keep taking carriages off the money train

while putting more people on

for the good of everyone

the land needs to be used most productively

which means investing in it

and the people who will invest the most in it and use it to its full potential

are the ones who pay for the most for it

if they buy it for top dollar and it doesn't work for them

they sell

in the 70's the usa was worried because the japanese were buying lots of their companies

americans were lots from japan at the time so the japanese had all these american dollars to spend

to fund the vietnam war, the dollar was devalued to dirt

so the japanese got best value for their dollars by spending them in america

40 years later, for many reasons, lots of those companies have been sold back to americans

does it worry americans that sony now own music and movie studios that used to be american owned?

japanese companies like toyota now have car factories in depressed parts of the country

spartanburg, tennessee virtually gave land to bmw so they would build a car factory there

honda have even moved their head office to the usa

has this changed the usa? - yes

has it wrecked the usa? - no

would slapping up fences to prevent foreign ownership of land and companies have made the usa a better place?

- i don't think so, it would have probably stayed stuck in the 70's, like the soviet union stayed stuck in the 50's, unable to meet the changing needs of future generations

in nz muldoon almost bankrupted the country trying to keep us in the 50's

change is always needed

and gradual change is best accepted