MORE ON CHINA

I reproduce in full, an article in my local newspaper, the Gold Coast Bulletin, published on the 17th October 2013 by Tanya Westthorp.  The publisher and writer are acknowledged in full.

Now local agents and the people at the Gold Coast Bulletin may think that Chinese based buyers flooding into the market and paying “over the odds” is a good thing but as I’ve written before, this surge of interest will eventually come at an horrific cost. Read and decide for yourself…

CHINESE buyers are splashing cash on Gold Coast properties, paying well above the asking price and adding pressure to an increasingly heated local market.

Real estate agents report the number of sales has doubled in recent months with properties fetching tens of thousands of dollars more than the expected price.

Asian investors are spearheading the interest with Ray White Broadbeach sales and marketing consultant Tiger Malan saying it has sold 23 properties in the first 16 days of October — six of which have been to Chinese investors, sometimes sight unseen.

Chinese buyers paid more than $20,000 above the expected price to secure a $1.4 million Clear Island Waters home and a $1.27 million Isle of Capri mansion.

A Paradise Waters block also recently netted top price when Chinese investors bought it for $4.2 million and a local Chinese buyer snapped up a Sorrento home for $1.9 million.

“When Chinese buyers see what they want, they are willing to pay a premium,” said Mr Malan.

The comments were echoed by Ray White Surfers Paradise principal Andrew Bell, who said his agency had sold more than $30 million of property this month, including nine homes in just three days.

One $2.15 million Currumbin home sold for 26 per cent above reserve last month while Chinese buyers snapped up 50 properties.

“It’s the strongest month we’ve ever seen on the Gold Coast,” he said. “It is up about 50 per cent on previous months …

“There is a lot of action in the sub-$1 million homes.

“About 15 per cent of buyers at our auctions are now Asian.

“Last year we sold $130 million of property to Chinese and this year it is likely to be more than $200 million. It just keeps gaining momentum.

“The Chinese are no fools — they do their research and don’t buy blindly but when they can see the capital growth, they buy.”

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