I’ve been banging on for nearly a year about the high level of Chinese buying in the market, especially in Sydney and Melbourne. I’ve also said that their buying sprees are based on “get anything desirable at any price – just beat everyone to the property”.
I’ve been criticised for over stating the facts. Thanks to all you who’ve “had a crack”. Well now you are going to look rather foolish, and those of you who emailed me can now say “Sorry GW, you were right after all”.
Below, from the Sydney Morning Herald of 06 March 2014 by Reporter Max Mason….thanks Max!
Close to one-fifth of new properties in Sydney are being bought by wealthy Chinese investors and the flood of money is set to continue.
Using data from the Australian Bureau of Statistics and the Foreign Investment Review Board, Credit Suisse estimates that Chinese buyers account for 18 per cent of new property purchases in Sydney, and 14 per cent of the supply in Melbourne. This does not include second-hand homes.
”A generation of Australians are being priced out of the property market. Many face a lifetime of renting,” analysts Hasan Tevfik and Damien Boey said.
There are currently 1.1 million millionaires in China who could easily afford properties in Australia’s two most expensive markets, Credit Suisse said.
Wealthy Chinese buyers have purchased $24 billion of Australian housing in the past seven years, and over the next seven years an additional $44 billion will be spent on residential property, Credit Suisse estimates.
There was $17.2 billion worth of approved residential property investment coming in from overseas in the year June 30 2013, down from $19.7 billion in the previous period, according to the FIRB. Foreigners must seek approval to buy established real estate and rural land, but can buy up to 50 per cent of a new building ”off the plan”.
Of the 2013 total, $5.6 billion was approved for residential properties in New South Wales.
Read the rest of the article here – http://www.smh.com.au/national/locals-priced-out-by-24-billion-chinese-property-splurge-20140305-347oq.html
What this DOES NOT tell you, because its all Foreign Investment Review Board figures, is the number of properties being bought by Chinese Australian citizens and permanent residents, with money (not theirs by the way!) repatriated from China via Hong Kong. Now that is a whole other story!
More as it comes to hand.