Sotheby’s Real Estate is opening an Office here on the Gold Coast. Mmmmm. The Chinese are coming here in droves and buying up. It looks like the Japanese rush all over again. Dr Boldy, Sotheby’s main man in our region, is quoted as saying, “Our Sydney Office under Michael Pallier just posted $300 million turnover in its first year and recorded nine sales worth more than $10 million…. half of those sales were to Chinese buyers but others came from all over the globe.”
It’s an interesting but also ambiguous statement. Does he mean 4.5 sales more than $10 million per property went to Chinese buyers or that $150 million of their total sales went to Chinese buyers? In any case it’s a lot of Chinese buyers!
People are emailing and calling freaking out that they should “get in now whilst prices are low and interest rates are low” and that I’m just a scare monger. Well let’s have a look at a statistic that pertains to this RISING CAPITAL CITY MARKET that everyone is quoting to me as a reason to GET IN NOW! Australia’s capital cities’ property values actually FELL 7.4 per cent from October 2010 to May 2012, and ROSE 8.7 per cent from June 2012 to September 2013 . Simple maths – say at October 2010 we give the values a value of 100.00. Take off 7.4% and you’re left with 92.6. Take the new lower value of 92.6 and add 8.7% and you get 100.65.
WOW! Back to SQUARE ONE plus a little for Grandma. No surge, no value increase, no need to panic and as I keep saying….watch for the steep and sudden correction when it comes.
Take out the Chinese action and its all downhill baby!
Our hearts go out to the thousands of Aussies who’ve lost their homes, possessions and in one case so far, their life, around Sydney this past week.