JUWAI WEBSITE REACTION TO VICTORIAN STATE BUDGET’s NEW TAXES ON FOREIGN BUYERS

IT would appear that foreign interest in Australian domestic housing is again emerging not only in Victoria but also in Greater Sydney …

IS it because the Scomo Government has refused to stem the sale of Australian property and assets to foreign entities  …

AND has, it would seem, suspiciously failed to introduce the ANTI-MONEY Laundering Rules for this sector … having exempted it in October 2018 … and to address an underlying weakness in the structure of the Australian economy?

MEANWHILE the Taxes are of little note to High Net Worth …

 

 

 

 

CHINESE WEBSITE Reaction to Victorian State Budget’s new taxes on foreign buyers

 

Chinese website reaction to Victorian State Budget’s new taxes on foreign buyers

EXPERT OBSERVER

Will the higher taxes announced this week make a tremendous difference on the market?

The answer is no. They are dispiriting but not too damaging. There is an old saying to the effect that those who can’t vote, pay. 

Victoria is the number one destination for Chinese buyers in Australia, leading Sydney with a wide margin. The fact that prices and Victoria are lower than in Sydney has helped to drive Chinese purchasing.

The foreign buyers’ tax that was until now 1 per cent lower than in New South Wales also contributed to support demand.

Image may contain: one or more people

CAAN Photo:  Sunday 26 May 2019 at Rouse Hill, North-Western Sydney a Real Estate Agency set up in an arcade with properties listed for all over Sydney.  Promoting the Stamp Duty exemption for First Home Buyers.

The other big political news lately is the recent national election. The election outcome will have a positive impact on Chinese real estate investment.

Image may contain: 2 people, people standing and indoor

CAAN Photo:  Prospective clients viewing and discussing properties with RE Sales Agent in Rouse Hill Sunday 26 May 2019.

The research we conducted just before the election found that a significant share of the industry believes the Coalition victory will mean more Chinese investment, while a Labor victory would have meant Chinese investment would fall. Will Chinese buying triple overnight just because Scott Morrison is in The Lodge? No, but there will be a real impact.

Our core case for 2019 is for Chinese investment to be flat, after two years of falling far and fast from the peaks we saw at the end of 2016. Chinese buyers are still the most important foreign buyers in the market. They just are not buying with the same hyperactivity as three years ago.

Image may contain: 1 person, standing and indoor

CAAN Photo:  Rouse Hill, NorthWestern Sydney, Sunday 26 May 2019;  the trial run of the Sydney Metro was held.  View previous articles about development from CAAN on Rouse Hill

The top Australian cities in 2019 are Melbourne, Sydney, Brisbane, Adelaide, and the Gold Coast, followed closely by Perth in sixth.

Melbourne and Sydney together in 2019 account for 52.3% of buying enquiries.

The cities with the fastest growing levels of Chinese buyer interest are Hobart, Brisbane, and Canberra.

Hobart has the fastest rate of Chinese buyer growth, with 77% more buyer inquires in 2018 than the year before.

Brisbane has the second fastest rate of Chinese buyer growth, with 30.8% more Chinese buyer inquiries in 2018.

Canberra has the third fastest rate of Chinese buyer inquiry growth in Australia, with 24.6% more Chinese buyer inquires than the year before.

Remember that all three of these smaller cities receive significantly less buyer interest than do Sydney or Melbourne. That’s especially true of Hobart and Canberra.

Brisbane is fast becoming a real alternative for the two traditional gateway cities of Melbourne and Sydney. Hobart and Canberra, however, still account for only a small share of Chinese buyer interest.

Carrie Law is the CEO of Juwai, a Chinese website for buyers of overseas property.

SOURCE:

https://www.propertyobserver.com.au/forward-planning/advice-and-hot-topics/china/99025-chinese-reaction-to-victorian-state-budget-s-new-taxes-on-foreign-buyers.html

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The end of the backyard! How a booming population is fuelling an explosion of apartment towers across Sydney – with the city expected to run out of land within a DECADE!

WITH SYDNEY running out of land … it would appear we need a Federal Government that will intervene to stop the sell-off overseas of Australian housing … and this could readily be remedied by enforcing the Anti-money Laundering Rules for the Real Estate Gatekeepers known as the Second Tranche!

IF this was not so … why do you suppose the Scomo Government exempted the Real Estate Sector in October 2018?

NOTE … the Berejiklian Govt will introduce the Medium-Density Housing Code in July 2019 however

big Developers want more … storey upon storey they make a motza!

WHEN voting on or before 18 May 2019 … to lessen the impact of overdevelopment in NSW put the LNP Coalition and those that preference them last … i.e. the UAP and PHON!

 

 

The end of the backyard! How a booming population is fuelling an explosion of apartment towers across Sydney – with the city expected to run out of land within a DECADE

  • Stockland chief Mark Steinert predicted Sydney will run out of land for housing
  • He told business lunch Australia’s biggest city would hit this point in 10-15 years
  • Heavy construction underway in south-west and outer north-western outskirts 
  • Former NSW premier Bob Carr said the Sydney backyard will ‘vanish inevitably’ 
  • Griffith University’s Tony Matthews said families forced to live long way from city

 

 

SYDNEY could run out of land for new housing within a decade because of its burgeoning population.

Apartment towers and master-planned houses are mushrooming up to 60km from central Sydney, with heavy construction underway in the the city’s south-west and north-western outskirts. 

Former farmland on the edge of Sydney is being consumed by new housing projects, as the city continues to expand towards the city basin limits.

Australia's biggest city could run out of land for new housing within a decade because of a population boom (pictured is Oran Park in Sydney's outer south-west)

 

Australia’s biggest city could run out of land for new housing within a decade because of a population boom (pictured is Oran Park in Sydney’s outer south-west)

 

 

In just a decade, the population of the Camden local government area ballooned by 58 per cent, surging from 49,645 in 2006 to 78,218, Australian Bureau of Statistics Census figures show.

That rate of growth was more than triple that of greater Sydney – at 17 per cent – over the same period, as the population climbed to 4.8million, fuelled by high levels of immigration. 

CAAN:  Now more than 5 million people in Greater Sydney

In Sydney’s south-western outskirts Oran Park, a former car race track, mushroomed from less than 200 people in 2011 to 4,765 people five years later.

In another part of Sydney, the opening of the Metro Northwest railway line is also underpinning apartment construction near the Rouse Hill station, almost 50km from the city.

Nearby, West Schofields is expected to house another 45,000 people between 2021 and 2031, the New South Wales Department of Planning and Environment projected.

Mark Steinert, the chief executive of residential building group Stockland, this week predicted Sydney could run out of land for new housing within a decade.

Hemmed in by the Blue Mountains to the west and national parks to the north and south, there was little room for further expansion.

Apartment towers and master-planned houses (Oran Park pictured) are mushrooming up to 60km from central Sydney, with heavy construction underway in the the city's south-west and north-western outskirts

 

Apartment towers and master-planned houses (Oran Park pictured) are mushrooming up to 60km from central Sydney, with heavy construction underway in the the city’s south-west and north-western outskirts

 

Former farmland (Narellan pictured) on the edge of Sydney is making way for new housing projects, as the city continues to expand towards the city basin limits

 

‘There’s very little housing land left in Sydney, in fact we’ll be out of housing land in 10 to 15 years,’ Mr Steinert told the Committee for Economic Development of Australia luncheon.

Former New South Wales Labor premier Bob Carr said high population growth in Sydney would unavoidably lead to high-density housing, killing  off the backyard.

Stockland chief executive Mark Steinert: 'We'll be out of housing land in 10 to 15 years'

Stockland chief executive Mark Steinert: ‘We’ll be out of housing land in 10 to 15 years’

‘What has been Australian life will vanish inevitably,’ he told Daily Mail Australia.

 

‘You cannot ramp up the population of the Sydney basin with the highest level of immigration of any developed country – in proportion to the existing population – without forcing the city to go up in increased densities.

‘We are now looking at the last land available for broad-acre subdivision and development.

‘We were never going to be able to sprawl forever.’

Former New South Wales Labor premier Bob Carr said high population growth in Sydney would eventually kill off the backyard

 

 

Australia’s population surpassed the 25million mark in August 2018, 22 years earlier than predicted in the federal government’s first inter-generational report of 2002. 

The 1.6 per cent population growth pace is also more than double the rich-world average of 0.7 per cent. 

*Mr Carr served as foreign minister in 2012 and 2013, as Australia’s annual net immigration level surged above 200,000 for the first time, when Julia Gillard was prime minister.

‘There was no discussion in cabinet on immigration levels,’ he said.

CAAN:  We recall in the Howard term in the late 1990s there were as many as 300,000 permanent migrants p.a. as this Government scapegoated refugees!

Carr:  ‘They continued to be pumped up but there was no opportunity to have a broad debate on migration and population.’

*Since the late 1990s, backyard sizes in new Sydney houses have shrunk from 700 square metres to just 400 square metres, in places like Oran Park in the Camden Council area.

 

CAAN:  This happens to coincide with when in the late 1990s in the Howard Government the middle class Chinese were given ‘flexible citizenship’ when they purchased our real estate or education!  Following which there was a housing boom and prices escalated between 2001 and 2004. Visa manipulation has since become a Growth Industry!

 

 

 

Dr Tony Matthews, a senior lecturer in urban and environmental planning with Griffith University, said backyards had shrunk from 700 square metres to just 400 square metres (new house at Oran Park pictured)

 

 

Dr Tony Matthews, a senior lecturer in urban and environmental planning with Griffith University, said backyards had shrunk from 700 square metres to just 400 square metres (new house at Oran Park pictured)

 

Sydney’s median house price has fallen by 16.1 per cent since peaking in July 2017.

But at $880,369, detached homes with a backyard are still more than 10 times an average full-time salary of $83,500, which is forcing couples with children to move to an outer suburb.

How backyards are shrinking or disappearing

*Griffith University senior lecturer in urban and environmental planning Tony Matthews said backyards, during the past two decades, had shrunk from 700 square metres to just 400 square metres.

Tony Matthews: 'We're running out of greenfield land'

Tony Matthews: ‘We’re running out of greenfield land’

 

 

The traditional ‘quarter acre block’ backyard was becoming rarer as houses grew larger and in many cases, land sizes became smaller.

*The building footprint fills up a considerable portion of the block, maybe as much as 90 per cent,’ Dr Matthews told Daily Mail Australia.

High land costs were also encouraging developers to fit in more master-planned housesto get higher yields.

‘The cost of land is so high developers or master planning development companies need to get a yield that will allow them to make sufficient profit to go ahead with the actual development,’ Dr Matthews said.

The lack of new land in Sydney was also contributing to smaller backyards and more apartment towers.

‘We are basically running out of greenfield land,’ he said.

‘Within our existing urban areas and  our existing suburban areas, and even our existing outer-suburban areas, what has been a planning priority over the last 20 years is to try and curtail sprawl development, particularly at the edge of the cities.

‘That’s also why we’ve seen so much high-rise development.’

Dr Tony Matthews, a senior lecturer in urban and environmental planning with Griffith University, said many parents were moving to small blocks 60km from the city to find somewhere affordable with a vague semblance of a backyard.

‘Their priorities shift when they have children and they starting thinking about, “You know what, I’d really rather raise my children in a more conventional house“,’ he told Daily Mail Australia.

‘They’re prepared to sacrifice their backyard or a large backyard.

‘There has been a long history of reluctance to equate family living with apartments in Australia.’

CAAN:  Perhaps that is because it is not that far back … it is in living memory … that most people had a cottage and a backyard … it has only been since the instigation by the property sector that Australian real estate has been flogged off overseas that our land is being devoured!

The excessive commute times in Sydney were also creating ‘socially detrimental consequences’.

‘You’ve just got less time with your kids or one parent has less time with their kids,’ Dr Matthews said.

‘Children end up often being not just in daycare but long daycare so they might be there from 6am to 6pm, which isn’t necessarily optimal for them for their social development.

‘The amount of time that you spend commuting is almost directly proportional to the amount of time that you are likely to engage with your community and participate in things like voluntary activities.’

Camden Liberal councillor Peter Sidgreaves, who until recently was mayor, said population growth was a problem in his area.

‘I have to say that the traffic congestion is getting worse,’ he told Daily Mail Australia.

An influx of new immigrants – from India, Afghanistan, Bangladesh and Nepal – were moving into the area, 65km from Sydney’s city centre.

‘Yes, that’s certainly a major change to Camden and that’s something as a community we’re dealing with,’ Mr Sidgreaves said.

At this stage, Mr Sidgreaves said Camden’s population increase was fuelling more demand for house and land packages than apartments.

‘There have been a lot of residential developments and that has been happening in the south-west growth centre precinct,’ he said.

Late this week Dartwest Developments, the group behind the new Narellan Town Centre, lodged a council application to knock down 11 houses to build a new four-storey apartment complex along Somerset Avenue.

Whether they sell for a good price is another matter, with New South Wales already home to almost half of Australia’s apartments.

House prices in Sydney reported to take a tumble

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While younger people may prefer apartments (Sydney Olympic Park pictured), Dr Matthews said parents with young children were preferring to live in house, even a long way from the city

 

 

Tim Lawless, the head of research with real estate data group CoreLogic, said younger people were preferring to live in apartments closer to the city instead of houses a long way from work.

‘We are seeing a gradual shift towards medium to high-density preferences,’ he said.

CAAN:  It would seem a whole cohort ofyoung Australians have been priced out of both house and land packages and apartments to buy having to rent!  It would appear the competition from the high overseas influx has had something to do with the consequences?  And black money continues to be awash in Australian Real Estate with the Scomo Government having exempted the Real Estate Sector from Anti-money Laundering Rules as recently as October 2018! 

 

1881: 2.3 million 

 

1918:  5 million

1959: 10 million

1981: 15 million

1991: 17.4 million

2004: 20 million

2013: 23 million

2016: 24 million

2018: 25 million

 

Sources: Australian Bureau of Statistics; House of Representatives Standing Committee for Long-Term Strategies, December 1994

‘Those people look to, say, sacrifice the Hills Hoist in their backyard and live close to the city where they can perhaps live in medium to high-density but also be much closer to where they work, closer maybe to transport connections, social opportunities, perhaps where their parents live.’

*At the Committee for Economic Development of Australia luncheon, in Sydney’s  Shangri-La Hotel overlooking The Rocks, the Property Council of Australia’s group executive of policy and advocacy Mike Zorbas slammed Mr Carr’s suggestion as premier that Sydney was full. 

CAAN: Heaven forbid a look at the reality that the Property Sector ‘Nirvana’ might be coming to an end!!  Heaven forbid a reality check!

Mr Carr said big business and federal Treasury economists were wedded to ‘remorseless population growth as the underpinning of our economy’.

‘It is the orthodoxy that links business and the Canberra bureaucrats,‘ he said.

He said Mr Steinert’s prediction of land running out in Sydney ‘confirms the warnings I’ve been making for over 20 years about the “more the merrier” ideology’. 

‘The inevitable depletion of the land supply mandates a basin filling with towers.’ 

CAAN:  Does it?  It would appear we need a government that intervenes to stop the sell-off overseas of Australian housing – which can be quickly remedied by enforcing the Anti-Money Laundering Legislation for the Real Estate Gatekeepers known as the Second Tranche!  That will fix the problem overnight!  

If this was not so … Why do you suppose the Scomo Government exempted the Real Estate Sector in October 2018?

 

WHEN VOTING ON OR BEFORE 18 MAY 2019 IT IS OBVIOUS … PUT THE LNP COALITION AND THOSE THAT PREFERENCE THEM LAST … I.E. UAP AND PHON!

 

SOURCE:  https://www.dailymail.co.uk/news/article-6983693/How-Sydney-run-land-new-housing-10-15-years-population-booms.html

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CHINESE AREAS GROUND ZERO IN PROPERTY CRASH: RYDE IN SYDNEY … hullo Harry!

THE worst impacted areas of the bust in Sydney and Melbourne are those with high concentrations of illegal Chinese buyers due to China’s capital controls.

In Sydney that is Ryde!

As China slows, its capital account will close ever more to prevent a yuan collapse and the money will simply be stuck in China. 

TO save where we live from the Chinese and local developer Awfulizers, and restore housing affordability for First Home Buyers put the LNP last … check party preferences too! 

And number all the boxes! 

THE LNP exempted the Real Estate Gatekeepers from Anti-Money Laundering Legislation as recently as October 2018!!!  That is how much they care for Millennials …

 

House prices in Ryde, Sydney are expected to be savaged. Picture: Google

 

 

Chinese areas ground zero in property crash

 

Via News:

House prices in Australian capital cities are set to fall sharply over the course of the year — and one ritzy suburb will be savaged.

…The biggest fall in house prices are expected to remain in the Ryde area, in the city’s northwest, with a 15.8 per cent fall tipped for this year.

Apartment buyers in Ryde are already paying the sames prices they were five years ago as sellers continue to slash their asking prices to counter the current market slump.

The median unit prices have fallen from over $720,000 two years ago to about the $650,000-$670,000 mark in North Ryde and nearby Meadowbank.

As already noted, this report is garbage.

But one thing it does illustrate to the knowing is that the worst impacted areas of the bust in Sydney and Melbourne are those with high concentrations of illegal Chinese buyers.

 

Image may contain: sky, tree, skyscraper, cloud, plant and outdoor

CAAN PHOTO:  Waterloo Road Macquarie Park, Ryde

 

In Sydney that is Ryde:

In Melbourne it is the inner-east:

 

No matter what happens in the broader market, these areas are likely to keep deflating as Chinese capital flight is a structural not cyclical shift:

As China slows, its capital account will close ever more to prevent a yuan collapse and the money will simply be stuck in China.

 

 

SOURCE:  https://www.macrobusiness.com.au/2019/04/chinese-areas-ground-zero-property-crash/

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CHINESE BUYER INFLUX HIKED AUSTRALIAN DOMESTIC HOME PRICES: NOW THEY’RE LEAVING …

Image may contain: one or more people, skyscraper, sky, tree and outdoor

OBVIOUSLY if there is to be a restoration of the domestic Housing Market for Australian First Home Buyers … Australia needs a government that will address:

-a pay rise for Australian Workers

-implementation and enforcement of the second tranche of the Anti-Money Laundering Legislation for the Real Estate Gatekeepers

-a stop to Visa Manipulation … in granting a “Permanent Residency” Visa following real estate purchase

In all likelihood the Chinese and ‘MILLIONS’ across Asia will look to migrate here once the price of property begins to rise again!

 

No photo description available.

 

THE best solution would be the AML Legislation … it would likely fix the problem overnight … with the Proxy also disappearing … the ALP will act if elected:

View: Real estate agents, lawyers and accountants will be forced to report dirty money that is used to buy property if Labor wins the upcoming federal election.

https://caanhousinginequalitywithaussieslockedout.wordpress.com/2019/02/26/labor-proposes-crackdown-on-dirty-money-laundered-through-australian-real-estate/?fbclid=IwAR0e3Ucf1Kacj9ibmxVeJZfhX228d7S8b4L5_GuoQJShS6ci-OpdWxhEUAo

CAAN Photo 1:  Chatswood Mall

 

Image may contain: 5 people, people smiling, people standing and outdoor

Photo 2:  Chinese buyers success at auction sale

 

Business

Chinese Buyers Helped Boost Australian Home Prices. Now They’re Leaving

  • Foreign investment in real estate takes a dive Down Under
  • Reserve Bank cites China pullback as a driver of downturn
Doom and Gloom for Australia’s Housing Market

 

As real-estate agent Adam Wong works through Australia’s worst property downturn in decades, he’s also found himself at the mercy of China’s slowing economy.

 

In Wong’s core market of Chatswood, a suburb north of Sydney’s harbor bridge where a third of residents claim Chinese ancestry, his sales have slumped by as much as half from their peak. That’s reflected in recent government data showing China is no longer Australia’s biggest foreign investor amid a plunge in property purchases.

“There are two main factors behind the drop,” said Wong, who estimates 90 percent of his sales in Chatswood are to Chinese buyers. “The first is people not being able to get the money out of China, and from mid-2017 China’s economy started to slow and that also had an effect.”

Chinese appetite for apartments and harbor-side mansions helped drive an east-coast property boom that saw Sydney house prices soar 75 percent in the five years through mid-2017. The rally was also fueled by limited supply, rapid population growth and low interest rates. But since then, prices in Australia’s biggest city have dropped 13 percent.

Aussie housing boom driven by investment inflows

 

Reserve Bank Governor Philip Lowe noted the withdrawal of foreign buyers in a speech Wednesday as he sought to explain the drivers of Australia’s property slump. The central bank is closely watching the decline, especially as it’s starting to impact household spending and slow the economy.

(CAAN:  More on this can be found in:  “Vital signs:  Australia’s Sudden Ultra-low economic growth … )

“Another demand-side factor that has influenced prices is the rise and then decline in demand by non-residents,” said Lowe. “The timing of these shifts in foreign demand has broadly coincided with –- and reinforced –- the shifts in domestic demand.”

While Chinese buyers helped inflate the property bubble, they’re unlikely to return in sufficient numbers to stabilize the market. For one thing, shifting money abroad from China is tougher these days as authorities there are strictly enforcing rules aimed at curbing capital outflows.

There are other domestic factors suggesting prices could keep declining too. Australian banks have turned gun-shy on lending following an inquiry that exposed widespread misconduct in the industry and more homes are coming to the market.

Chinese investment key for driving peak property inflows

 

Chinese investment in Australia has surged since the turn of the century as buyers snapped up assets from mines to farms.

(CAAN:  The Howard Govt in the late 1990s enticed the Chinese Middle Class to invest in our Real Estate and education with the lure of “flexible citizenship”)

In recent years, attention increasingly turned to real estate, driven by the appeal of Australia’s clean environment and a surge in Chinese students attending university there, encouraging parents to buy homes for their children.

The Chinese didn’t just favor Australia. Investors embarked on a shopping spree that helped inflate asset prices around the world, snapping up everything from luxury condominiums in Canada to resorts in Hawaii and skyscrapers in London.

Things got tougher for Chinese buyers when Beijing imposed capital controls to help stabilize its currency, limiting the amount companies and individuals could move abroad. Adding to this, Chinese authorities have been reining in a borrowing spree at home, allowing the economy to cool from the breakneck pace of the past in order to maintain financial stability.

At the same time, Australian authorities — facing a political backlash over soaring house prices in Sydney and Melbourne — started tightening rules for foreign investors.

Residential investment led as inflows surged to a record

Wong estimates the withdrawal of the Chinese probably accounts for about a quarter of the drop in Chatswood house prices. As to whether Australia still appeals to Chinese buyers, he reckons there’s nothing to fear there.

“Australia is still in the top two or three that Chinese are looking to migrate to overseas,” he said. “It’s just really a matter of whether they have the money, and if they do, whether they can get it out.”

— With assistance by Garfield Clinton Reynolds, and Kevin Zhang

 

SOURCE:  https://www.bloomberg.com/news/articles/2019-03-07/how-a-chinese-exodus-is-exacerbating-australia-s-property-slump

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PROPERTY OBSERVER ALLEGES … Australians are too suspicious of the nationality of our new neighbours  … 

ON what basis is it valid for foreign entities, foreign companies, foreigners  to own Australian domestic housing?

HOW can this be justified?  HOW valid would it be for Australians to own a slice of their domestic real estate?

WHAT is the agenda of the RE Sector?  Is it that they are ignorant of PROXY Buying?  Is it something they don’t know anything about?

THIS is what the issue is about … the total number of Australian dwellings that are being bought by Foreigners …  we are talking about the numbers!

 

 

4 MARCH 2019

Australians are too suspicious of the nationality of our new neighbours  …

 

Jonathan Chancellor, editor-at-large of Property Observer

 

Australians are too suspicious of the nationality of our new neighbours

 

 

 

PROPERTY OBSERVER:

Foreign investor interest in Australia remains strong, the Foreign Investment Review Board (FIRB) chair David Irvine suggests.

But the latest FIRB report revealed a strong shift with the United States stepping up its investment in the 2017-18 period accompanied by declining Chinese investment easing into second place.

 

*CAAN:  What has brought about the fall in Chinese interest in our Real Estate are the Chinese Government capital controls and as recently as early February 2019 gaol terms to deter the money coming out of China … and the mission China has taken on to covertly recover its Billions by employing former law enforcement officials as seen in the Four Corners Project Dragon!

From the key points of Lucy Macken “China Continues to Dominate Australian Real Estate but the USA now main source Australia’s foreign investment” 

U.S. investment up to $36.5B 2018 financial year; increases in real estate, manufacturing, electricity and gas; US main source of foreign investment

https://caanhousinginequalitywithaussieslockedout.wordpress.com/2019/02/19/8514/

PROPERTY OBSERVER:  The United Kingdom, Singapore, Canada, the Netherlands and France make up the top seven.

The latest report on foreign investment showed the US recorded a $10 billion increase in approved investment to $36 billion in 2017-18, with significant increases in real estate and the*manufacturing, electricity and gas sectors.

CAAN:  As Lucy Macken reveals:  “Chinese real estate investment with $12.6B from mainland; $7.8B from Singapore; and $5.8B from the U.S.” 

U.S. real estate investment is but a quarter of that of the Chinese!

 

PROPERTY OBSERVER:  China was the second largest source country with a $15 billion decrease in approved proposed investment to $23 billion.

The reduction in approved Chinese investment was due to falls across all investment sectors but especially property.

Chinese proposed investment peaked at $47.3 billion in 2015–16.

Chinese investment in real estate dropped to $12.7 billion in 2017-18 from $15.3 billion the year before, though still accounted for a quarter of foreign real estate investment.

Victoria gets the greatest share of Chinese residential investment with 46% of all approvals, with NSW in a distant second with 23% followed by Queensland’s 17%.

*The data doesn’t track people who don’t need to request approval, which means NSW might be actually getting more investment.

 

CAAN:  Obviously the “people who don’t need to request approval” are the onshore Proxy agents, Property Alliances, and Syndicates laundering the black money from China on behalf of their foreign clients in our real estate.

International Organisations including Transparency International, Financial Action Task Force (FATF), the OECD have reported that Australia is awash with money laundering in its Real Estate!

YET, as recently as October 2018 the Real Estate Sector was made EXEMPT from the Second Tranche of the Anti-Money Laundering Legislation by the Morrison Government!

VIEW:  Real Estate Agents, Lawyers & Accountants Avoid Money Laundering Laws = Keeping Australian FHBs locked out …

https://caanhousinginequalitywithaussieslockedout.wordpress.com/2018/10/09/2665/

 

PROPERTY OBSERVER: But it seems Melbourne retains advantages over Sydney in terms of prices and taxes.

Chinese buying is being impacted by several factors, local and international.

There’s been the unexpected cancelling of promised mortgage loans by Australian banks, plus the higher foreign stamp duty taxes, along with Chinese government capital controls making it more difficult to move money from China, suggests Carrie Law, the boss of the Chinese property portal Juwai.

“We expect Chinese buying to be flat in 2019,” Law thinks.

*I don’t think we ought regard the recent trend as permanent given tailwinds that will support Chinese buying including the still-strong Chinese wealth growth.

*There is the desire to get a bargain while the market is soft. Plus, Law suggest there is a lack of investment opportunities in China, along with a possible shift in investment from the U.S. to Australia due to any emerging trade war.

*Additionally the yuan’s weakness is not holding back investment in property as there is an advantage in currency rates in favour of Australia compared to other major countries.

The Chinese also lack appealing alternative investments at home.

 

CAAN:  Would not these factors indicate an IMPERATIVE NEED for the FIRB to stop the sell off of Australian domestic housing?  Due to these factors a Whole Cohort of Australians remain locked out of the Housing Market!

 

PROPERTY OBSERVER: *Interestingly, the Federal Government’s crackdown on residential properties held by foreigners in breach of the foreign investment rules uncovered just 131 now-sold illegally held properties in 2017-2018.

 

CAAN:  It would appear the pathetic total of 131 properties found to be illegally held by foreigners is due to almost 5,000 ATO Officers having been made redundant. Therefore how effective can a Federal Government/ATO “crackdown” be?

The real numbers of foreign-owned dwellings particularly from China are concealed by the onshore PROXY buying.

 

PROPERTY OBSERVER:  *No nationalities were advised in the figure which was up slightly from the 96 ordered forced sales in 2016-17.

There were other breaches that did not see any forced divestment.

More than half the breaches identified were residential property in Victoria, while 20% related to property in New South Wales after the Australian Taxation Office (ATO) completed around 1,400 residential real estate investigations during the year.

ATO data matching analysis is increasingly important in compliance investigations.

Data matching made up 63% of the 1,700 cases investigated in 2017–18.

Although information received from the community is a source of intelligence, only a small proportion actually involved a breach of the Act.

**The report noted that in most cases the owners of the properties reported by community members were found to be Australian citizens or permanent residents.

That suggests we might a little too quick to judge our new neighbours.

 

CAAN:  Question why were the Nationalities concealed? Obviously “in most cases the owners of the properties … were found to be Australian citizens or permanent residents” because the onshore Proxy, family, friends, Syndicates, and Property Alliances have been set up to launder money in our Real Estate. And through various Visas following buying property tourists, students, investors, family, etc can gain a “Permanent Resident” Visa.

It would appear it has all been set up!

This has evolved over decades … dating back to the late 1990s of the Howard Government … to entice the Chinese Middle Class to invest in our Real Estate to gain “Flexible Citizenship” ..

The Chinese Communist Party (CCP), is the founding and ruling political party of the People’s Republic of China. The Communist Party is the sole governing party with 8 other subordinated parties co-existing making up the United Front!

VIEW CAAN Website to find out more in the categories of:

-Visa Manipulation

-Anti-Money Laundering Legislation Shelved

-Black Money …

-Proxy …

 

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TUESDAY FINANCE WITH ALAN KOHLER: FIRB APPROVALS FELL 58 PER CENT …

 

Image may contain: 1 person, suit and closeup

 

TUESDAY FINANCE WITH ALAN KOHLER

NEW DATA SHOWS APPROVALS FOR FOREIGNERS TO BUY AUSTRALIAN HOUSING HAVE COLLAPSED

ALAN KOHLER: FIRB approvals for foreigners to buy Australian housing fell 58% in the 2018 Financial Year to $13 Billion.

Less than 20% of the total approvals, and the lowest levels since 2010.

Now it’s happening because of higher government taxes on foreigners plus greater scrutiny of them, and local banks are not very interested in lending to foreigners any more.

CAAN: What is MISSING from the Kohler Report: Not that the Australian Banks have had much to do with foreign buyers because there is no Anti-Money Laundering Legislation for the Real Estate Sector (the second tranche shelved for some 12 years)

This has continued despite FATF, Transparency International, OECD and others have warned that Australian Real Estate has been awash with Black Money!

ALAN KOHLER: And as we saw on Four Corners last night in Project Dragon, they are having more trouble getting their own money out – especially from China.

Now foreign buyers were a big part of the reason house prices went up so much. So their departure helps explain the falls, of course, also there are more than 200,000 apartments currently being built; many of them sold off the plan to the vanishing foreign buyers … so developers would be now getting very nervous!

CAAN: If you are brave enough to risk buying an apartment (with 85% defective on completion: Engineers Aust Reports and others) recommend you bargain hard for a further price drop to allow for removal and replacement of combustible cladding; rectification of water leaks etc

VIEW VIDEO: 19 FEBRUARY 2019

https://www.abc.net.au/news/business/kohler-report/

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DOMAIN TAKES A $178M HIT ON TUMBLING PROPERTY MARKET AS NEW LISTINGS DRY UP

 

WELL, WHAT DO YOU KNOW!

IS this a case of ‘suck it up‘?  … For you have been talking up the market for years and enjoying the benefits
IS this a case of greed has got the better of you?  That the business model based on ever increasing house prices might actually be akin to a ponzie scheme?

IS it the case that advertising gurus and marketers got into bed with the media players and developers all singing from the same song sheet?  Only now all of a sudden reality has come home to roost, ‘what goes up’ doesn’t always stay there, and indeed may just as easily come down …

IS it the case they don’t want to talk the truth, they want the gravy train to continue so the incessant chatter about adjusting to new market conditions, casting our marketing further afield, offer more to foreign buyers’ are signs things are not so good out there in home land?

IS it this lot who are hell-bent on ensuring high-rise developments happen; reshaping our urban environment because simply put there’s money to be made for all these hangers-on?

AFTERALL if ordinary people are given less opportunities to live in detached housing (owing to rezoning and land-banking) they will eventually have little alternative but to reluctantly accept it …

IS it this lot of slippery promoters who are “constantly in the ears of legislators” trying their best to:
.have a minimal regulatory environment especially for the Building Industry in standards, compliance and certification?
.rezoning available beyond the reach of local councils and communities?
.always keen to make conditions difficult as possible for existing residents to retain the amenity they have enjoyed – be it through over-development through to various forms of disincentives (like compulsory acquisition, levies on older residents in detached housing) that breakdown opposition to this reshaping of our urban landscapes

FINALLY, is it this lot along with their mates that turned shelter into a commodity, that housing is no longer about people or communities?

IS it about wellbeing, and families, or as they see it only about returns for investors?

 

 

Domain takes a $178m hit on tumbling property market as new listings dry up

BY BUSINESS REPORTER STEPHEN LETTS

Sold
PHOTO

Falling house prices and fewer listings has taken its toll on Domain’s bottom line

REUTERS: DAVID GRAY

Real estate advertising portal Domain has taken a savage $178 million haircut to its value thanks to a crumbling housing market and the evaporation of properties listed for sale.

 

In its first-half results announcement, Domain said lower-than-expected listings in the Sydney and Melbourne markets required a re-assessment of carrying value in company.

The write-down comes a little over a year since Domain’s ASX listing in the wake of its separation from the old Fairfax media group, which is still its majority shareholder in its new form as a merged company with Nine Entertainment.

The big hit to goodwill saw Domain’s first-half result tumble to a $156.4 million loss, down from a $3.3 million loss in the previous corresponding period.

It is the second significant write-down the company has been forced to take in its short life, following a $30 million blow in August last year on costs associated with rebranding.

The underlying first-half result — stripping out one-off items, such as the goodwill write-down — was a $21.1 million profit, down 14 per cent on last year.

Sales revenues were effectively flat — up just 0.3 per cent — to $184 million for the half.

Shares bounce on guidance

The loss of goodwill is treated as a non-cash item and does not affect banking covenants, the company said.

Domain has endured a rough start to life on its own, putting up its shingle on the ASX in the midst of the most savage decline in the Australian property market in at least a decade.

It also lost its initial chief executive, the high-profile former Fairfax journalist Anthony Catalano, in contentious circumstances just two months after listing.

Tanking house prices and thin new listings have seen its share price tumble 30 per cent from its opening day close of $3.69 a share.

Current Domain chief executive Jason Pellegrino said it was a “solid performance” in the context of the current property market.

“We are confident in Domain’s long-term growth prospects and have a strategy in place place to build on our solid foundation, scale and capability as we enter our next growth phase,” Mr Pellegrino said in a statement to the ASX.

The company slashed its interim dividend from 4 cents a share last year to 2 cents.

However, the market was expecting worse and bid Domain’s share price up 22 per cent to $2.56 in early afternoon trade (at 2:00pm AEDT).

 

 

SOURCE:  https://mobile.abc.net.au/news/2019-02-15/domain-takes-a-big-hit-on-profit-due-to-weak-property-market/10814706

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MELBOURNE DEVELOPER OFFERS TOWNHOUSE BUYERS TO ‘PAY IN RENMINBI IN CHINA’

It appears this article is full of contradictions!

One minute Mr Ng says there is no-one bailing out, and at the end he is saying there is no interest … ???

Probably because they are set up to pay another way?

Surely there is more than one way that these purchases are taking place????  … cough … cough …

 

Melbourne developer offers townhouse buyers to ‘pay in renminbi in China’

Feb 5, 2019

 

A Melbourne-based developer has offered its Chinese buyers an option to pay for the purchase of townhouses in China, as developers get more creative in their sales tactics amid a slow market.

Faced with slow sales after the launch of the small three-townhouse project at Glengarry Avenue in Burwood, the private developer tapped its lead agent Kollins Property Investment to send the private offer to clients listed on their database.

“Client can pay in renminbi in China,” the email said.

Developers get creative with rebates at Glengarry Residence in Burwood, Melbourne. Supplied

 

Buyers would pay the developer, which has an office and account in China, without having to transfer money to Australia.

Developers have started to think outside the square on how to market their products as the market continues its downturn, Kollins’ Kelvin Ng said.

 

Tactics include rebates, utility packages, and car or furniture giveaways which entice buyers without an effective “price reduction”.

“I don’t think they are desperate. They are just being more creative in trying to move their stock,” Mr Ng said.

“While the method of payment is not common practice, the developer is trying to draw in more clients. Generally, while developers aren’t happy with the market, we are not seeing anyone bailing out in a hurry and are still optimistic about future sales.

Mr Ng said since sending the email in late January there had been no interest from buyers.

The interior of Glengarry Residence in Burwood, Melbourne. Supplied

 

As Kollins was only facilitating the sale, it couldn’t elaborate on how the transaction would be carried out, but it is likely that a contract would be drawn up by local lawyers.

The developer also offered a generous commission of 6 per cent to agents who sell the three and four-bedroom townhouses set on lots of 150 to 300 square metres. Prices for the homes start at $1.2 million.

Mr Ng said that, aside from new gimmicks, many developers were also looking to put up their unsold units as short term or “Airbnb” rentals to staunch a temporary cashflow bleed, and selling them later when the market picks up.

 

SOURCE:  https://www.afr.com/real-estate/melbourne-developer-offers-townhouse-buyers-to-pay-in-renminbi-in-china-20190205-h1avuk?fbclid=IwAR2oA4oIQYrkeAuF3hPMqnxi26DvIzJ1HyfA-ZKDGlK9Is79cshUhljeqKI

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MACQUARIE CENTRE TO KEEP OLYMPIC -SIZED RINK AS DEVELOPER CAVES IN

 

GREAT NEWS!

AMP Capital has announced that a planned redevelopment of the Macquarie Centre will continue to have an Olympic-sized rink.

City of Ryde mayor Jerome Laxale called the decision “a great development” and thanked the tens of thousands of people who joined the campaign.

“Our job now is to ensure that the Olympic-sized rink is retained in stage one of the redevelopment,” he said.

“It shows how much our community values open space,” he said. “Although it’s an ice rink, people use this site as they would usually use a park.

HOWEVER, many are still concerned the site has a 37-storey zoning!

WHAT will happen to the ice-rink, the business, the jobs, and this very important community asset over a lengthy period if a 37-storey development were to go ahead?

Macquarie Centre to keep Olympic-sized rink as developer caves in

 

The people have won the battle for the Macquarie Ice Rink in Sydney’s north-western suburbs.

After a community outcry that included petitions signed by more than 60,000 protesters, AMP Capital has announced that a planned redevelopment of the Macquarie Centre will continue to have an Olympic-sized rink.

An artist's impression of the proposed redevelopment of the Macquarie Centre that would have forced the closure of the iconic ice rink.
An artist’s impression of the proposed redevelopment of the Macquarie Centre that would have forced the closure of the iconic ice rink.

 

The managing director of AMP Capital Shopping Centres, Mark Kirkland, said the company had listened to the community’s feedback.

“Their outpouring of support shows us they are passionate about retaining an Olympic-sized facility,” he said.

 

Ahead of a planned major upgrade to the shopping centre, AMP Capital had told owner Frank Gregg that the ice rink’s lease would finish on January 31 next year.

The protests included a Change.org petition and dismay from Olympic gold medallist Steven Bradbury, who said it was “sad to see how many sports spaces have been gobbled up due to the ridiculous demand for real estate across Australia”.

Other elite skaters described the planned closure as “devastating” and an “absolute disaster”.

AMP Capital asked the City of Ryde council last month to put its development application on hold for further consultation over the ice rink’s future.

Dr Gregg was delighted by AMP’s decision.

“I’ve been waiting on some good news regarding the future of the place and so many thousands of the very keen skaters in the area have been waiting as well,” he said. “So it’s a good story all round.”

While having a recreational rink in the redevelopment was a possibility, Dr Gregg said an Olympic-sized facility was essential for the skaters and ice hockey teams who use the rink.

“A lot of skaters have grown up with the rink and they compete here so it’s very much a valued complex,” he said. “That’s why there was so much disappointment when they thought the rink might disappear.”

Future Olympic gold medallist Steven Bradbury won the 1991 Relaying World Championships at Macquarie Ice Rink when he was just 17.
Future Olympic gold medallist Steven Bradbury won the 1991 Relaying World Championships at Macquarie Ice Rink when he was just 17.

 

 

City of Ryde mayor Jerome Laxale called the decision “a great development” and thanked the tens of thousands of people who joined the campaign.

“Our job now is to ensure that the Olympic-sized rink is retained in stage one of the redevelopment,” he said.

Cr Laxale described the community response as extraordinary.

“It shows how much our community values open space,” he said. “Although it’s an ice rink, people use this site as they would usually use a park.

“It was a place where people met, it was a place where people trained, it was place where people had memories and keeping a community a facility like this … was why so many people were willing to be part of the campaign.”

But Cr Laxale said many people were still concerned the site had a 37-storey zoning.

“That’s still an issue,” he said.

The member for Ryde and NSW Finance Minister Victor Dominello called the decision “great news for the community and a victory for people power” after robust discussions with AMP Capital.

“The ice rink is a vital community asset and today’s decision will ensure it is protected and preserved for current and future generations,” he said.

 

Garry Maddox is a Senior Writer for The Sydney Morning Herald.

 

 

SOURCE:  https://www.smh.com.au/national/nsw/champagne-on-ice-macquarie-centre-to-keep-olympic-sized-rink-20190201-p50v2m.html

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CHINESE BUYERS LOOKING TO ‘GRAB A BARGAIN’ IN 2019 … AND WHY THE LNP MUST GO!

A MUST READ!  Absorb and share this important information with Everyone!

JUWAI.com has revealed that the outlook for Chinese residential real estate buying in 2019 will continue to be strong with Chinese buyers attracted by prices falling in Australia …

WHAT if the LNP were to change the policies that allegedly block foreign investment and break the dam wall? 

-ask the ALP what they will do about this!

-Chinese capital controls reduced investment in 2017 and 2018
-Australian fees and charges are nothing to the High Wealth Chinese
HOW likely is it that the Chinese use the Australian Banking & Finance Sector?
Chinese can freely launder their black money through an onshore Proxy in our Real Estate
-the Real Estate Sector was exempted from Anti-Money Laundering Legislation in October 2018
-coinciding with October 2018 the peak for Chinese residential buying inquiries on Australian property

 

Chinese buyers continue to focus their demand on new apartments and house and land packages in outer suburbs

-the yuan currently sits six per cent higher against the Australian dollar than it did at the same time last year.

it sits low against the US dollar; combined with the budding trade war in the US, makes Australia an easy choice for investment.

 

 

Chinese investment in Australian property to stay strong in 2019 as buyers look to ‘grab a bargain’

According to the report, Chinese buyers will be bolstered by strong Chinese wealth growth and the desire to get a bargain while the market is soft.

A lack of investment opportunities both in China and in other regions such as the US due to the trade war are also motives behind further activity in Australia.

“Unlike Australians, Chinese lack appealing alternative investments at home.

Bank deposits earn unnaturally low rates of return, Chinese stock exchanges are still immature and were the world’s worst performing in 2018, Chinese real estate is tightly regulated to make investing difficult, and peer-to-peer lending and private equity funds have collapsed due to fraud, poor management and government crackdowns,” said Juwai.com CEO and Director Carrie Law.

“Because few other appealing investment opportunities exist, Chinese have put 53 per cent of their wealth into real estate. In a 2018 survey, Chinese overseas investors named residential property their favourite asset class.

Barriers to investment

There are, however, a few barriers in the way of Chinese acquisition of Australian property. These barriers mean the rates are far lower than the current demand, according to the report.

*2015 and 2016 were boom years for investment, but that dwindled across 2017 and 2018. The numbers in 2019 are expected to stay the same unless Australia sees change in any of the policies which block foreign investment.

 

“Our metaphor is aquatic. The huge reservoir of Chinese demand is like water held back by a dam.

That dam consists of capital controls, onerous Australian foreign buyer taxes and the difficulties obtaining financing in Australia,” said Ms Law.

2018 activity

“In 2018, Chinese residential buying inquiries were down 20 per cent compared to 2017. But the news wasn’t all bad. In the fourth quarter, Chinese buyers made 58.1 per cent more enquiries on Australian property than in the same period in 2017,” according to Ms Law.

May was the lowest month for enquiries, with October seeing the peak.

These levels are expected to continue in 2019 due to the restrictions mentioned before, but we’ll still see Chinese buyers representing the highest percentage of foreign investment at 22 per cent.

The report shows that Chinese buyers spent approximately three to eight per cent more on foreign property in 2018 compared to 2017 levels, which sat at US$129.3 billion.

Top locations

The most popular Australian cities for Chinese investment in 2018 were Melbourne, Sydney, Brisbane, Adelaide and Canberra. Regionally, the most popular locations were the Gold Coast, Newcastle, the Sunshine Coast, Cairns, Wollongong and Geelong.

“Victoria will continue to receive the greatest share of Chinese residential investment — both by offshore and local Chinese buyers.

The state, according to Foreign Investment Review Board data, receives about $4 of foreign real estate investment for every $3 that go to New South Wales and for every $2 that go to Queensland,” said Ms Law.

“Melbourne retains clear advantages over Sydney in terms of lifestyle, prices and also a foreign buyer stamp duty that at 7 per cent is one point lower than the New South Wales equivalent.”

There is no chance Sydney will be knocked off the second place position in 2019, says Ms Law. With its iconic landmarks and popularity as an ‘iconic city’, Chinese buyers will still want a piece of the action.

“Very few attractions in Melbourne have earned the same level of awareness among Chinese consumers as have the Sydney stand-outs. While official statistics show that 62 per cent of Chinese tourists visit Sydney, only 50 per cent go to Melbourne. One-quarter visit the Gold Coast.”

The interest in Brisbane is driven by families with children who are studying in the city. More than 33,000 mainland and Hong Kong students were studying in Queensland in 2018, a significant increase from 21,000 in 2015. Chinese buyers interested in this area are hoping to make a profit on student accommodation and purchase property which can then be rented out.

“This year, in all four cities, we expect Chinese buyers to continue to focus their demand on new apartments and house and land packages.

 

FILE PHOTO: A house under construction can be seen behind an advertising banner at a housing development located in the western Sydney suburb of Oran Park in Australia, October 21, 2017.   REUTERS/David Gray/File Photo

A house under construction in the western Sydney suburb of Oran Park  Photo: Reuters/David Gray

Outer suburbs where new estates are going up are stealing buyers away from more traditional inner-city locations. Where developers or third parties can provide financing, demand is likely to follow,” said Ms Law.

Why Chinese buyers are keen on Australia

Chinese buyers are getting richer, and the yuan is currently sitting very favourably against the Australian dollar, which makes Australian property a tempting investment opportunity.

China will probably pass the USA in GDP size this decade to become the world’s largest economy. It is already the world’s largest manufacturer and biggest exporter.

There are now 3.5 million US dollar millionaires in mainland China, and wealth per adult has more than quadrupled over the past six years,” said Ms Law.

Much has been made of the weakness in the Chinese yuan and how it may restrain overseas investment. In the case of Australia, we disagree. The yuan’s weakness is not holding back investment in Australian property.”

The yuan currently sits six per cent higher against the Australian dollar than it did at the same time last year. Despite this, it sits low against the US dollar and other major currencies. This, combined with the budding trade war in the US, makes Australia an easy choice for investment.

“Australia has always competed to some degree with the US for Chinese students, tourists and property investment,” said Ms Law.

“With the trade war making some Chinese investors increasingly nervous about making new acquisitions of US real estate, some of those investors may turn to Australia as a natural alternative. Chinese students who turn away from US schools and universities may also choose Australia instead, which would also have spill-over effects on local real estate investment.

“The trade war could mean more Chinese investment for Australia.”

 

The total investment from Chinese homebuyers in Australia amounted to $87.6 billion in 2016.

Photo:  SBS

 

SOURCE:  https://eliteagent.com/chinese-investment-in-australian-property-to-stay-strong-in-2019-as-buyers-look-to-grab-a-bargain/

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