CONTRARY to reports from other media outlets JUWAI alleges that cashed-up Chinese buyers are flocking back at 51% to Melbourne, Sydney, Newcastle and Brisbane
Housing price hikes have fuelled FOMO in China … just what we need …
HOW can this be so with our borders closed?
OR are they lay-buying our real estate? Having gained a PERMANENT RESIDENT (PR) Visa on purchase …
AND they have their Onshore Proxy here … rels, and friends …
HOW can this be stopped?
SHOULDN’T SCOMO follow New Zealand’s lead and stop foreign buying of our real estate?
That has increased the supply and reduced prices in NZ for their people!
Lex wrote …
‘People have to live somewhere & it is far preferable to go up, allowing for the preservation of open spaces & transport consolidation than out, resulting in urban sprawl & the entire Sydney basin eventually being covered in squat buildings. It is the peculiarly Australian malady of High Rise Phobia that continues to fuel the urban sprawl that is threatening Mt Gilead & similar places.‘
CAAN: Yes, people do have to live somewhere, and in case it has escaped your notice, Lex, both Sydney and Melbourne have been subjected to high immigration … not just 70,000 per annum of permanent migrants, but during the term of the Howard Government it rose to some 200,000, 300,000 or more with temporary migration of Visa holders!
This population explosion began in the late 1990s of the Howard Government when Middle Class Chinese were invited to invest or buy our real estate to gain ‘Flexible Citizenship’!
And the Ponzi Scheme… the origins of which date back to the 457 Visa being introduced after John Howard took office …
Many on Student Visas were able to bring out family members through a Family Visa, Parent, Grandparent, and Guardian Visa.
The PhD Student Visa, Investor Stream, Significant Investor … and more!
This huge influx particularly from China led to increased competition for our housing … house prices escalated … locking out many young Australians … Black Money was awash in our real estate as the second tranche of the AML Legislation was shelved … then in October 2018 the Morrison Government exempted the Real Estate Gatekeepers from the Anti-Money Laundering Laws!
In January 2019 Scott Morrison announced a cut to migration of some 30,000, but at the same time overlooked that there were some 2.2 Million VISA Holders in Australia!
This Visa manipulation has benefited not only foreign buyers but both the high-rise and urban sprawl developers … in fact a ruling of the FIRB has allowed them to sell ‘new homes’ to foreign buyers! Whole Precincts of high-rise and urban sprawl!
IT would seem that the Australian People have been overruled by developers, doesn’t it?
- We have had no say about this whatsoever despite many spending years to try and save our Heritage, Fauna, Flora, Farmlands, villages and suburbs from their greed and destruction!
SO what do you say now, Lex, about ‘High Rise Phobia’ fuelling the urban sprawl?
Search CAAN Website to learn more about …
-Lang Walker, Walker Corporation
-Harry Triguboff, Meriton
-Country Garden (now Risland)
-Wilton, Appin, Mount Gilead
-Foreign Investment Review Board (the FIRB) and much more!
Read this from Elizabeth Farrelly:
The Morrison government quietly began prioritising Visas for ultra-wealthy foreign investors late last year
CURRENTLY we are being distracted by ‘The Boy in the Bubble’ …
AND on Women marching for Justice … we heard:
“Mr Speaker, not far from here, such marches, even now, are being met with bullets, but not here in this country, Mr Speaker.”
ARE we in Toad territory?
ARE you aware that this government favours Ultra High Net Worth foreigners flush with cash over all others?
Apparently the Sc.mmo government quietly began prioritising VISAS for UHNW foreign buyers in late 2020!
• to prioritise investor visas over those of foreign workers in critical sectors during the pandemic
Allegedly to inject these foreign funds into our economy
-increased the cap on investor visas with approval times slashed
-with an influx of foreign property buyers
-then Immigration Minister Alan Tudge directed Home Affairs to prioritise investor visas; those with $5M to invest conferred top status; to fast track to Permanent Residency
-Home Affairs employees instructed to secondarily assess those with $1.5M or more along with Business Innovation and Investment Program Visas (BIIP)
–pandemic 408 Visas to maintain personnel e.g. in healthcare are secondary to investment
–government doubled annual cap for investor visas from 6,800 to 13,500
MEANWHILE … 40,000 AUSTRALIANS REMAIN STRANDED OVERSEAS!
Juwai IQI reported in 2019-20 more than 1500 applicants; China and Hong Kong 88.5% of Significant Investor Visas
-despite the talk of innovation and business investment it is the Australian property market that draws foreign attention
REMEMBER … Sc.mmo wrote the policy for the developer lobby, The Property Council of Australia prior to entering politics …
-in the rising market these foreign investors are gaining residency; many coming all at once with PR Visas granted in record time!
-without the PR Visa these foreigners have to pay stamp duty; get FIRB approval; for properties of $6 – 8M equates to $500,000 in fees
WHAT we at CAAN gathered from this article is that:
-it tried to be a bit upbeat, refraining from being negative
-is it trying to have an each-way bet?
-includes some contrasting stats; that indeed there is some downturn in activity
IT states the bleeding obvious, that little stands in the way of foreigners buying up our real estate
-that there is nothing intrinsically wrong with foreigners buying up Australia
-it also makes sure there is some optimistic spin included … to give their readers something to look forward to, to keep the dream alive
BUT what we got from it was the recognition that:
-prices are indeed influenced by the purchasing demand of foreigners hence the reason why we all pay more to live in our own country
-asian buyers are, and ought to be the focus for locals wanting to sell
AND the other part that is of concern is:
-how short sighted is it?
-the article failed to recognise or acknowledge the housing issues AUSTRALIANS are struggling with right now
-that social housing is greatly under-supplied
-that we are indeed in a different space and time since COVID came along; many in the business world seem to be stuck in chanting the tune of getting back to where we were
HOWEVER if things haven’t changed for the foreseeable future then those running airlines like Cathay Pacific must be wrong … they having announced the axing of thousands of jobs, like dozens of US and European carriers
Reality is things have changed, and these pundits just want things to go back to the way they were
WELL, it may suit them, but it may not suit a lot of others.
IS the growth economy here forever? Maybe they need to think again.
Read and reflect on what this will mean …
IF the Liberals were to win the imminent Queensland election having given the undertaking that they will administer a 75% CUT TO LAND TAX, and grant FOREIGN BUYER TAX EXCLUSIONS FOR BUILD-TO-RENT developments, what will that cost? What will it mean for:
-aspiring Australian First Home Buyers?
.cast aside by preferential treatment for those with ‘hot money’ to launder
-Australian developers and hence their Australian clients?
AND these benefits even outstrip those of the Liberal NSW Government 50% Build-to-Rent land tax discount …
WHERE can you see this going?
Could it be that also in NSW aspiring Australian FHBs will be drowning in a housing market flooded with investors buying up homes for rental redevelopment?
Knocking the ‘Australian Dream’ on its head … with the aspirants stymied by the emergence of a feudal life-long tenancy regime …
READ MORE! THEN SHARE … especially with your Queensland contacts!
The NAB Survey findings reveal foreign buyers are buying up new homes across Australia
–19.3% of Victorian new homes sold to foreign buyers
-with demand from China, India, and other parts of Asia
Juwai IQI Executive Chairman, Georg Chmiel submits overseas buyers are as little as some 5 per cent to 7 per cent of existing sales and 10 per cent to 13 per cent of new sales.
IS Chmiel serious?
WHAT about the real percentages that we suggest are concealed through the onshore Proxy who is already a citizen …
THE following may explain why Chmiel refers to the Chinese market as ‘a lifeline for developers’ …
In 2019 China had over 300 billionaires which put the country second in the world, after the United States
In China, there are 4.4 million millionaires, an increase of 158,000 on 2018, according to the report, and 10% of the global total. There are an estimated 1.1 billion adults in China.Oct 21, 2019
Back In 2019 this was reported in The Daily Mail
‘How more than A THIRD of the most expensive homes in Australia are bought by super rich Chinese entrepreneurs’
- Australia’s most expensive property was sold to a Chinese investor for $140m
- Other apartments in the building also sold for about $40m to foreign buyers
- One quarter of Chinese tourists visiting Australia are looking to buy property
This report in 2018 …
Credit Suisse was able to obtain the breakdown of one in four Chinese buying Australian residential property from the three state governments that charge higher stamp duties on overseas buyers.
Credit Suisse said the data from January to June 2017 showed that 87 per cent of foreign property buyers in NSW were Chinese, with New Zealanders at 1.6 per cent the next biggest nationality.
The data shows the mainland China crackdown on money leaving the country has not dented demand. Nor will extra taxes deter the foreign buyers …
With the Australian housing market skewed to be supported by foreign buying, and Chinese wealth creation, how likely is it to stop any time soon?
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 despite the 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)
PERHAPS the Pandemic could be seen as a ‘blessing in disguise’ for Australian First Home Buyers … if it were not for the dire consequences here in Australia ALREADY of:
-even higher unemployment and underemployment which was at 19.7% prior to the Pandemic!
-Australians are dining at home; retail is struggling
-migration has almost been eliminated (but we can heave a sigh of relief!)
-as a consequence new housing supply is becoming more abundant
-many have had to break their housing lease or be evicted and rents have fallen
-lenders however are tightening their belt
WHAT could prevent Hong Kongers taking over from where Mainland Chinese left off … is that China will take control of their money! Thus preventing them fleeing to Australia to park their wealth
WHAT will be the saving grace out of all of this will be that the GUVMNT would not dare open the migration floodgates with such HIGH UNEMPLOYMENT ….
SHARE TO LET OTHERS KNOW!
CAAN Photo 2: Lindfield; sought after by Mega Rich Foreign Buyers
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 $30B despite 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!
VIEW today’s report in the SMH: