APART from the very low interest rates, the Morrison Government Grants, and the short supply of housing, pushing up house prices, Australians have witnessed the high immigration from China that arose in the 2000s, and many Australians have been outbid at auctions …
WITH more than 80% of Australians knowing that foreign buyer competition particularly from China has driven up house prices … does ‘the Truth hurt’? Namely, those who benefit most?
WHY would Naaman Zhou write in Guardian Australia that ‘More than 80% of Australians mistakenly believe Chinese investors are driving up house prices’?
We suggest the survey and data Naaman Zhou is basing his report in Guardian Australia is now out of date!
Because Monika Tu, founder and director of Black Diamondz Property whose clients are mainly Chinese citizens with Australian residency working and living abroad predicts that when the borders open they will flood back in … some are seeking $10M plus homes, but will they be seeking our detached homes with large land lots in green suburbs too? Hm … .
Not only will they continue to come from China but Singapore, Hong Kong, the United States (Canada too?) and the United Kingdom. 27 of the 29 Sydney properties listed by Black Diamondz sold recently.
Once again the ‘exchange rate’ is in their favour! With Australian housing more reasonably priced than Japan, London, New York, Beijing and Shanghai!
These $20 – $30M buyers having made their offers are holding off to exchange when they can return to see the property.
The pattern is repeated in Melbourne’s eastern suburb of Box Hill, where sales and marketing director, CBD Development, Ricky Chen is seeing enquiries pick up again for a mixed-use high-rise development with hotels and retail space.
They are seeking larger apartments to live in, to retire in Australia or to send their children to study.
Martin North, principal of property research firm Digital Finance Analytics, also notes ‘there’s been a swing away from foreigners looking to invest to people wanting to move here.’ And that they are more interested in buying land and larger properties!
Have our politicians including Premier Berejiklian been promoting our success in fighting Covid-19, and our beautiful country to entice foreign investment with its many added benefits of a Permanent Resident Visa following purchase?
Many Chinese have previously purchased an apartment as a ‘new home’ through which purchase they gained a ‘Permanent Resident Visa’, and this Visa has allowed them to buy our established housing. Which explains how they can overcome the FIRB restriction of only being able to buy a ‘new home’!
They can ‘lay-buy’ these homes through Juwai until the borders open, and fly in as ‘Permanent Residents’.
OBVIOUSLY these overseas buyers have led to even more competition for our housing, and further reducing the supply!
The property industry, and the Law Council backed by the Morrison Government exemption for the Real Estate Gatekeepers to the second tranche of the Anti-Money Laundering Laws in October 2018 has meant ‘black money’ continues to be awash in our real estate.
Many properties, we have learnt, do not reach the real estate websites, but are sold online to these overseas buyers sight unseen!
It is not only First Home Buyers but all Australian Buyers have been impacted as prices escalate daily!
CONTRARY to Eliza Owen from CoreLogic, and Elena Collinson these reports reveal the return of Chinese property buyers to our housing market:
From the ABC The Business: ‘Chinese Property Buyers Return’ as recently as 1 July 2021.
And ‘US Buyers lead a 15.5% surge in Foreign Investment in Aussie Houses’
‘ … trailed by Singapore with $9.5 billion and mainland China in third place with $7.1 billion. However, China’s overall value rose to just shy of Singapore’s when combined with that of Hong Kong.’
And ‘Cashed-up Chinese Buyers swarm Australia’s Housing Market with their sights set on major East Coast suburbs’!
In Australia previously we have lost many of our Heritage Homes because wealthy foreign buyers bought them while on a temporary visa to then demolish them for a ‘new home’, and gain a PR Visa.
Are they able to increase Australia’s housing stock by adding a granny flat, and enticing family members through any number of other visas e.g. Family, Guardian, Parent, Grandparent … ? Cough … cough …
AUSTRALIANS, it appears, are aware now of what has been happening having witnessed enormous housing development in their midst along with a huge influx of Visa holders particularly from China. Their concerns have been confirmed not only by these changes, but Geopolitical Strategist David Lee confirms why:
‘If you get on the hill, and you film down into Chatswood – it’s like this city in the middle of nowhere called Chatswood … it is just northwest of the Sydney CBD.
It is being built by the Chinese Communist Party.
All the money has come from China. It’s not from Hong Kong people … they speak Mandarin (in Chatswood; previously it was Cantonese)
A lot of money comes into Chatswood, and it’s effectively the Shenzhen/Hong Kong to Sydney CBD of Australia.
This is the most wealthiest couple of kilometres in the entire of Australia! … This city has happened out of nowhere … massive high-rises … it looks like Hong Kong … it’s a city being built ostensibly with China’s money … ‘
It is indeed surprising that as much as 33% of those surveyed would believe that Chinese investment in our real estate market would benefit Australians when 100% of the dwellings in these precincts are sold to Chinese buyers, and are constructed by largely overseas workers particularly from China!