Chmiel, of course, …. has overlooked wage stagnation, high unemployment and underemployment in Australia with one Million Australians for whom there is no job!
Unemployment was at 19.7 per cent prior to the Pandemic! A consequence of the competition for jobs from Visa workers across all industries …
SEARCH CAAN WEBSITE for more information …
Add to the mix high immigration and visa manipulation, the syndication of the PROXY Buying
Thus aspiring incumbent home owners were locked out of the housing market long before Covid-19!
The HNW and UHNW Foreign buyers are able to concentrate on the inner city and affluent areas because, it seems, policies have been rewritten to allow them!
The FIRB Data reveals over the last 10 years:
–buyers from Asia have spent some $211Bn in our real estate
-of which $125 Bn from Chinese buyers; they made 40.1% more inquiries in the second quarter than in the first quarter despitethe pandemic, travel bans and lockdowns
-at 14.9% below that of a year earlier
–local buyer activity dived by 40% *
CHINA … with its Wuhan capital in the Hubei Province … the source of the World-wide pandemic … is now appearing to prosper with the Chinese buying real estate both in China and in Australia enabled by online marketing!
WHY not ask your local MPs why the Morrison Government is not addressing this serious imbalance for its Constituents?
SHARE! Tell others !!
VIEW OR SEARCH AND READ MORE!
‘Almost 20% of new Victorian homes are sold to overseas buyers’
caan.info/3jVj5Bv (if this link does not work here; copy it and search for the article)
DOES it appear that the role of the Foreign Investment Review Board (the FIRB) is to look after the wealth portfolio of their client base, largely the Property Sector … ?
CAAN has a look at a document alleged to be ‘The Facts about Foreign Buyers’ … of Australian Real Estate from the Real Estate Institute of Australia …
WITH the development of Fiefdoms across Sydney … known as High-rise Precincts, does this Sector seriously believe that Australians cannot see what is going on?
OBVIOUSLY these ‘Fiefdoms’ evolved due to the high cost of tiny lots in the Sydney CBD and the inner circle suburbs …
PERHAPS this has something to do with the evolution of so many HIGH-RISE PRECINCTS across Sydney … where developers could buy large lots at a fraction of the cost … to sell to a huge overseas market!
THE HIGH-RISE PRECINCTS across Sydney that look like Fiefdoms … were proposed dating back to 2012! Facilitated by high immigration and Visa manipulation.
When their suburbs are being inundated with people from overseas particularly since 2015 from Mainland China … that as at 2015 many Australians were outbid at house auctions – largely attended by these Visa holders or their onshore Proxy, and that this experience continued … until there was a change with Realtors cancelling auctions to conduct sales inhouse …
In this frenzied environment prices of homes escalated … perhaps unbeknowns to many at that time (2015) investment of $1.5M in a home correlated with an Investment Stream Visa … which no doubt also contributed to the price hike!
YES, why do we need ‘foreign investment’ which are in fact foreign acquisitions’?
The answer to this perhaps goes back to lobbying by this sector in 2008/09 when they were able to convince the government with ‘the Sting’ that they needed to increase their overseas marketing sales from 50% to 100% of ‘new homes’! They then got an FIRB ruling!
AND Australia not only has had high immigration but a backdoor to migration through Visa Manipulation with Temporary Visa holders able to gain ‘Permanent Residency’ when they bought our real estate …
As reported, the FIRB to date in November 2018 had not carried out a single prosecution against foreign buyers who had failed to comply with our laws on buying our real estate!
WHY is it that temporary Visa holders can purchase our land, an established home and a number of ‘new homes’? … How can that be of any benefit to Australians? With so much competition in the market?
Amanda Lynch, the former CEO of the REIA suggests that without foreign money many new developments would not be possible … of course not because they would bloody well not be needed!
Constituents especially Our Youth do not need them either because they are priced out, or because we resent this ugly inundation of High-Rise Precinct Fiefdoms across Sydney …
Rentals are only now coming down due to the Pandemic with so many having lost their jobs and/or business owners have had to break their leases … forcing landlords to reduce the rents to gain new tenants …
Previously it was said that Chinese buyers were targeting homes valued at less than $1M which is the market normally for Australian First Home Buyers. However, Ms Lynch puts that these foreign buyers are acquiring properties valued at more than $1M …
That could possibly be the case with reports that some ‘buy a whole floor of an apartment development’ … CAAN was notified of this happening in Asquith!
AND there are no limits on the number of ‘new homes’ they can buy!
WHY wouldn’t the REIA believe that this huge foreign market was good for this Sector? As the supply was built for these foreign buyers … a possible 1.4 Billion of ‘em!
The suggestion that this increased the supply of rental properties is readily disputed due to the numerous reports of ‘foreign buyer’ dwellings left vacant and pristine.
Have you noticed in your area such empty dwellings? We know of a ‘block of flats’ that has remained empty for more than 12 months; recently it has been lit up of a late afternoon with blinds half open; some move up and down a little periodically (on a timer), and the lights on one balcony remain on all day and all night. No-one is ever seen to enter, or leave … mail and flyers ooze out of the letterbox …
From a record $72B foreign buying spree in our real estate in 2015/16 it is alleged to have dropped to $30Bdespite the increased housing development in that period …
Could that be explained by the presence of the onshore Proxy, and/or the foreign buyer having gained a PR Visa through online purchase?
What the Institute omits to refer to are the vast number of UHNW and HNW acquiring our real estate who were not discouraged by increased stamp duties, nor banks tightening lending because it would seem that they deal in shadow banking … and Black Money … what did make a difference in or about 2018 was China’s capital controls! Since lifted …
WITH the FIRB role of ensuring this foreign buyer market in Australian ‘new homes’ …
DOES it seem that this is the very reason for the existence of the FIRB?
The fees of $5000 or $10000 are nothing to those of High Net Worth …. Temp. Visa holders who buy our real estate can fast-track to gain a ‘Permanent Resident Visa’
AND there are no limits on the number of ‘new homes’ that foreign non-residents can buy; they only have to seek FIRB approval … for whatever that means!
FURTHER … they can buy an established home for redevelopment … hence many beautiful Heritage and Mid Century Homes demolished allegedly to increase housing stock …
Possibly for even more ‘foreign buyers’?
About the Facts on Foreign Buyers of our Real Estate from the Real Estate Institute …
IS Australia set to offer HongKongers Visas? Will the Protesters get a look-in?
SHARE the following comment because we too were equally alarmed!
How many, or would that be ‘how few Hong Kong Protesters’ would be offered these Tiananmen Visas … as they are bundled off to gaol ??
SELECTED COMMENT ON THE SMH REPORT:
“Coalition hard right arch conservative backbencher, Kevin Andrews was on the ABC spruiking this thought bubble and I was gobsmacked at the logistical and economic consequences of his delusions.
He quoted a figure of 100,000 to 200,000 young Hong Kongers coming to Australia where they would be able to ‘go to university’ and enjoy the warmth of Australian compassion for refugees of all ethnicities and religions.
Fanciful stuff during a pandemic travel embargo, and where foreign students are expected to pay upfront and be able to support themselves and where there is an unemployment explosion amongst young people here in Australia.
The rich older folk with British passports could go to England, and if you read the Chinese Global Times, this move will be another nail in the coffin on any Australian economic recovery.
Why do they keep shooting themselves in the foot when they haven’t shown any compassion for refugees from other parts of the world in much greater need and when Andrews as Immigration Minister cut the intake of refugees from African countries because ‘some groups don’t seem to be settling in and adjusting to the Australian way of life.’
“AND … this is what CAAN wrote about this outrageous proposal!
COME join us for a wander around Lindfield in the NSW Seat of Davidson.
CAAN Photo: Redevelopment underway in Milray Street behind O’Dea’s office
ONE may well ask what has brought about the big changes in Lindfield and neighbouring Roseville and Killara?
WHEN Jonathan O’Dea has been the NSW Liberal MP for Davidson since 2007, and he again retained the seat in 2011 with the O’Farrell Government, and to date!
‘Building for Tomorrow … And ‘Delivering for Today’ is the current NSW Liberal Party Motto
DESPITE the protests from this Electorate concerning the demolition of beautiful Federation Homes and gardens for residential apartments … it continues … as O’Dea resides in Lindfield with his family.
With a look at O’Dea’s Home Page it notes his Masters Degrees, and Bachelor Degrees along with two Diplomas in Legal Practice and ‘Mastering the Boardroom’ … no doubt this skills base has been very useful in Davidson for this MP …
BECAUSE all it seems the established residents can look forward to is a new underground carpark. Was this to placate them because their streets were being parked out? With the apartment developments housing X times the number of people as they replace detached homes on large grounds?
Fences have been built to protect the street trees while construction is underway …
We continued with our wander in Lindfield and noticed among the real estate agencies there were Belle, Savills and First National. The sign read for ‘First National Real Estate Lan – Dom’ … quite unusual don’t you think?
With a google search it revealed that Lan Zhangand her husband started their own agency in 2015. Behind them were 26 years sales experience for Dominic Smith and Lan’s 20 years in trading throughout China and Europe. And her extensive reach to mainland China, her language skills, and full understanding of Chinese culture …
Perhaps this along with some other Real Estate Agencies access to WeChat, Ray White’s Chinese ‘Home Link’ … could explain why there has been such a demographic change and population growth for the North Shore particularly in Lindfield?
AS the CCP expand out from their city of Chatswood!
In case you missed Parts 1 and 2 of this CAAN Report view them here:
MEANWHILE on the ‘Almost Australian’ program the story of an Afghani child orphan who made his way here alone as a refugee yet he is still on a ‘Temporary Protection Visa’ more than 10 years later … but Money Launderers are welcome in abundance … ‘what a corrupt little nation we have become’ – to quote LVO from memory!
Key Points …
–Emma Vadas from Standen Estate Agents said 90% of enquiries from Chinese have consumed her company with proposals
-these are buyers who have bought and sold 2 to 4 years ago
-real estate speak: ‘such big drops would not happen if a large number of foreign buyers swooped in to capitalise on a temporarily depressed market’
WHY does the FIRB not ensure that the property market is only open to Australian buyers esp. in a recession? Enabling Australians to take advantage of lower house prices … FFS!
YET foreign buyers who are prevented from flying here can buy Australian homes online!
WHAT sort of a government allow the FIRB, and real estate marketers in China luring parents of students studying in the US and the UK to look to Australia
-offering permanent residency with Medicare benefits and access to a range of Visas for family members
Australia a SANCTUARY … with everything they want … and they are coming for it … and you know what … you can’t blame them … BLAME OUR GUVMNT … as they languish before the CCP hoping for an enquiry as our YOUTH are condemned to a life of poverty! FFS!!
Related Article: ‘Juwai China is back in Business ahead of the World and Chinese Property Buyers are back in Australia’
CHINA IS BACK IN BUSINESS AHEAD OF THE WORLD … AND CHINESE PROPERTY BUYERS ARE BACK IN AUSTRALIA … further confirmation from this report on ‘A Current Affair’
CAAN has been sharing the truth with you through Expert Reports since November 2014 …
NOW it appears it has taken the frightening consequences of the WUHAN PANDEMIC … to bring home the message to our politicians and even some of those who have prospered so much from Chinese buyers in the Australian Property Market …
WHAT will it take for the Morrison Government to implement and enforce the second tranche of the Anti-Money Laundering Laws for the Real Estate Gatekeepers?
-having exempted these gatekeepers in October 2018
WHEN the ‘flying pegasus’ presents a major security and financial risk to Australian Society … ?
ASK why has it taken so long for NINE … a major media network to tell it as it is?
CAAN will go even further than the closing comment of Robert Klaric, Real Estate Industry Advisor especially concerning Chinese property buyers …
‘They have a lifestyle, they have freedom, and they can protect their wealth from the CCP, from the Chinese Communist Party.’
Because the CCP controls all its citizens … it has been so easy for the Party not having to conduct military warfare but simply for Party members to arrive on a Flying Pegasus … in a Silent Invasion … and buy Australia’s National Estate … who can we thank for this?
Who has had the greatest hand in this?
Also view these related articles:
‘Juwai predicts Chinese Investors remain keen to buy Australian property: Are they seeking cheaper prices?’
TRANSCRIPT: FOREIGN BUYERS: ‘THEY’RE BACK’: A CURRENT AFFAIR
As our borders closed, local house-hunters thought the competition would ease. And It did for a while. But foreign buyers with deep pockets are back. #9ACA
Brady Halls, Reporter: Estate Agent James Crowe is finally back doing what he does best. (Morton Real Estate)
And Nicki and Jay have been chomping at the bit to get back into the race. The couple have been house hunting for a year now, and the Covid shutdown made their search even slower.
Nicki: It did a lot, a lot of the properties actually dropped off the market we saw; so things that we had been watching to see the prices fall were no longer on line.
Halls: But now another obstacle has popped up.
(Chinese buyers occupying auctions)
Nicki: We don’t need any more competition than there is already. We want to find something as soon as possible before the rest of the World!
Halls: And that competition is coming from where Covid began!
Lulu: We are actually busy.
Michael Pallier: Yeah, we just sold this house to a Chinese buyer, and they specifically bought it to use when they are not in China. *
Georg Chmiel, Executive Chairman at Juwai-IQI: China is back in business much earlier than the rest of the World.
Pallier: (As he looked over a balcony he indicated to Brady Halls)
New Chinese owners there, Chinese owners here, and the whole of this area is, you know, Chinese population.
Robert Klaric: What we will see is that the wealthy mainland Chinese will look towards Australia now to secure their wealth and secure their health*
CAAN: As shared previously with you … when foreign buyers buy our residential property they can gain a ‘Permanent Resident Visa’ with MEDICARE benefits thrown in!
And through Visa Manipulation, and able assistance from Migration Agents they can access a vast range of Visas including: student, investor stream, Family, Parent, Grandparent, and Guardian … the whole Family Clan may come to Australia!
Halls: Chinese money is starting to flow back into Australian property.
These new apartments in Sydney and Melbourne have reportedly seen unprecedentedsales and enquiries from wealthy Chinese taking advantage of our Covid-19 affected real estate market.
Chmiel: Chinese enquiries were only down 14% in the first quarter versus 40% for local buyers so much, much less than the local buyers.
Halls: Georg Chmiel is from Juwai, a Chinese property portel. So the demand from China has not fallen?
Chmiel: Definitely for a number of reasons on the one side Australia managed the Covid crisis really well; Australia is very attractive for students, investors and retirees, and also the market, the Australian property market is very resilient.
Halls: Michael Pallier and wife Lulu from Sotherby’s Realty in Sydney’s east vouch for that.
Michael Pallier: We have had quite a bit of interest from people from Asia.
Halls: This apartment is generating much foreign interest. And he sold another one below to a Chinese buyer only last month.
Pallier: They can’t get enough of it – clean air, clean food, great education, safe environment … it’s, it’s paradise for them.
Halls: What’s the appeal here in terms of Aussie property?
Chmiel: Chinese buyers like Australian real estate especially over UK and US real estate given the Covid Crisis has hit the UK and US much, much stronger.
Klaric: A lot of the mainland Chinese are seeing this as an opportunity to exploit a great deal because that’s what they are going to see in a property market for the next six months.
Halls: Robert Cleric is a real estate industry adviser, and he has had his share of dealings with Chinese buyers now keen to buy up our properties during this Covid crisis which he says has seen prices drop by ..
Klaric: Probably seen 10% during this period
Halls: And then there’s been the fall in the Aussie dollar making our property far more attractive to overseas buyers.
Chmiel: That’s absolutely true. It’s the Australian dollar is down 10% against some of the currency so that’s a nice buffer which people can include in their budgets.
Halls: Lulu is fielding many Chinese inquiries ..
Lulu: Yes, there’s always demand.
Halls: On this house with its lovely harbour views –
Lulu: And the Chinese people will always like Australia.
Halls: And across town James at Morton Real Estate is much the same.
Crowe: We have got lots of those clients who are certainly still in the market, and still keen to buy.
Halls: This three-bedroom terrace he is marketing just walking distance to the city has caught the eyes of both domestic and international buyers prompting frustration from this local onlooker.
Australian Buyer: The Australian property is treated as an investment not as somewhere you live; so unfortunately that has affected the market extensively.
Halls: Robert Cleric believes it’s time Australia didn’t sell its property but long term leased it like Asian countries do.
Until then he says Australia offers Chinese buyers a wonderful security blanket.
Klaric: They have a lifestyle, they have freedom, and they can protect their wealth from the CCP, from the Chinese Communist Party.
SEARCH FOR ‘FOREIGN BUYERS THEY’RE BACK’ ON ‘A CURRENT AFFAIR’ 12 MAY 2020
JUWAI predicts Chinese Investors want to buy Australian Property … are they seeking cheaper prices?
BECAUSE Chinese real estate firm Juwai IQI said they expected foreign buyers to Australia’s capital city markets where prices are expected to stagnate or fall.
EXTRACT from Juwai website:
‘39-year-old Boris Mei works in the Chinese export industry. He is one of the more and more Chinese people who want to buy real estate overseas.
He said: “I am thinking of Los Angeles or Melbourne because we have relatives in both cities. We hope that our 14-year-old daughter can study in these two universities and experience the overseas lifestyle. In the future, we may emigrate the whole family.’
FURTHER, that currently inquiries from China are down 14%, and that demand from local Australian buyers has fallen further.
Marketers are pushing more buyers to look at Australia instead of the U.S. and the U.K.
Juwai and others continue to peddle the myth that these buyers are only permitted to buy ‘new homes’ under foreign investment regulations … however once they gain a Permanent Resident (PR) Visa following real estate purchase, they can buy established homes too!
And/or another loophole while on a Temp Visa if they buy an established home (allowed for the time of the Temp. Visa) they can demolish it for a ‘new home’.
It is reported that auction clearance rates have halved to 33.8 per cent in the week to 19 April due to the shutdown of in-person auctions on 24 March, and the closure of our border to Chinese tourists; enacted on 1 February.
However, the property sector has clout and the restrictions are to be eased this Saturday 9 May in NSW.
Prof. James Laurenceson (the Acting Director of the Australia-China Relations Institute at the U.T.S. ) (ACRI) said ‘cashed-up’ (is that ‘hot money’?) property investors obviously are likely to maintain their interest in Australian apartments. Why wouldn’t they with a PR Visa and medicare benefits following purchase … and the ability to bring out the whole family through a range of Visas including: Family, Student, Parent, Grandparent and Guardian?
To top it off he said that the Chinese economy would better resist the CoronaVirus … giving the Chinese more money to spend overseas, and that …
-China’s wealth has not disappeared
-no property price collapse in China
-one common form of asset for Ch households
With friends like the FIRB and the ACRI what more do they need?
With the oversupply of off the plan apartments perhaps developers are pushing for the floodgates to be opened to offload their defective dwellings to the money launderers?
LET’s hope in the process that Australia is not beset with a second deadly wave of Covid-19?
WHY the push to fast-track more development for Chinese buyers when there is an urgent need for social housing for Australians? 200,000 Social Housing dwellings!
Perhaps it is too late for the FIRB to keep its guard up? Time for it to go!
However, Martin North from Digital Finance Analytics contrary to Laurencenson said the Chinese economy is not strong. And that China is encouraging its people to invest in China …
Read more: ‘Chinese investors are waiting to snap up Australian property at cheap prices once travel restrictions are lifted’
-the Foreign Investment Review Board, (FIRB), David Irvine and Phil Gaetjens
-the second tranche of the Anti-Money Laundering Laws shelved; the real estate gatekeepers made exempt in October 2018 by the Morrison Government
IS it WorkChoices by Stealth alone that is at the core of the loss of Home Ownership? Or is there more to it?
… FINALLY a little truth is revealed in this article but what is at the core of the rotten apple is again overlooked!
‘How Australia’s casual workers and investors are behind the decline in home ownership‘
IT is not only the inflated price of housing but new research reveals that the casualisation of the workforce and the growth of property investors together have led to the decline in home ownership ….
HOWEVER what is not revealed here is that it is not only homegrown property investors but a World-wide market particularly from China with a resource of some 1.4 BILLION People including millions of High Net Worth!
That is perhaps where ‘the growth in property investors’ stemmed from … a consequence of the ‘FIRB’ ruling allowing developers to sell 100% of ‘new homes’ overseas
-by 2040 those aged 25 to 55 will have only a 51 per cent chance of owning their own home
– down from 60 per cent in 1981
–home ownership will fall to 63 per cent; down from 67 per cent in 2016
QUESTION: How many of that 67% in 2016 are Australian born compared to new ‘Permanent Residents’ from overseas?
Swinburne University of Technology undertook the research on behalf of the Australian Housing and Urban Research Institute. (AHURI)
-in the 1950s, ‘60s and ‘70s the majority had stable incomes in full time work
-a change occurred in the 70s;now more than 24% have casual work
-casual work locks out these workers from gaining a mortgage
No refererence to where ‘the demand’ for Australian housing came from?
Which caused the price hike …
Professor Burke came close with this comment:
“The financialisation of housing is an international factor and is best understood as the process where housing is treated as a commodity to be invested in rather than a home, meaning more and more money flows into housing but without any necessary improvement in housing supply or quality,” he said.
Professor Burke conceded that:
-renters needed greater security and quality housing
-policies to enable them to build wealth
-more social housing was needed
BUT THEN rather than laying the blame at the feet of very pooor government policies written to benefit developers and their overseas buyers particularly from China the Professor laid the blame at the feet of ‘older home owners’ having acquired wealth … often over 40 years or more to buy the ‘family home’ … it is alleged wealth through home ownership … aside from the cost of maintenance, rates, taxes …
Forgetting that if one sells, it is at a loss with the cost of real estate sale, legal expenses, stamp duty, moving etc etc
-that the inflated price is due to the foreign demand particularly from China
–the Morrison Government exempted the Real Estate Gatekeepers from the second tranche of the anti-money laundering laws in October 2018
IT would seem these are the reasons that we will have long-term social problems until AUSTRALIANS jack up and demand a stop to these policies!
AND a thorough investigation of the FIRB! Disband the FIRB!
AND VOTE FOR A PARTY THAT WILL ADDRESS THIS!
READ more from Melissa Heagney, ‘How Australia’s casual workers and investors are behind the decline in home ownership’