Fairfax: The Yellow Peril is upon us

[Dose 11]

Two front page SMH (online) this morning:

 

http://www.smh.com.au/comment/investors-become-like-bulls-in-a-china-shop-20131027-2w9ki.html

 

http://smh.domain.com.au/real-estate-news/market-heads-up-as-chosen-areas-blast-off-20131027-2w9s2.html

 

I wish Sheehan would take a position.  Lots of "may, could, might" in his language.   I think his point is that Australian policy has now priced Australians out of Australia, but get used to it...whatever that means.  Or his perhaps point is more subtle...that prices will drop 25% when the rules are reset.   Or he's writing a subtle homage to Walter Sobchak's famous exclamation "This is what happens when you f*** a stranger in the a**!".   I'm not sure.  But...blame China.  Or blame your MP?  Confusing.   

 

Today's second article is more direct:

 

 

On the upper north shore, Pymble Richardson & Wrench agent Don MacLennan said the lower end of his market had gone ''ballistic''.

Advertisement

Mr MacLennan sold a three-bedroom house on 843 square metres at 3 Yarrara Road, Pymble for $1,285,000 by private treaty last week.

''Three years ago, it sold for $905,000; it had a lick of paint and was immediately let,'' he said.

''Most people said the house was too small but the buyer is living in a 100-square-metre flat in Hong Kong.''

 

From my POV the market does appear to be more dysfunctional than ever.   That three bedder sold for $1.2 would struggle to get more that $900 pw rent.

[tor 90]

1.3 million is now the lower end of the market?

 

Part of my plan for wandering the world has included renting my house to some friends in a break even fashion just so I have a place to stay that I want to stay in whenever I have to come back to Australia. They have asked if after 6 years (when the rules change regarding place of residence for cap gains rules changes) they can buy it off me.

 

I said it wasn't out of the question because I figure the crash must occur by then and so they would be able to afford it but if the crash doesn't occur I am not selling it to them because it would ruin their lives. 1.3 million would buy me a few similar type of places around the world though...

[cobran20 96]

Perhaps the FIRB should provide detail data on the matter...

 

SQM: Chinese Property Investors taking over the Australian Market - Fact, Fiction or Fear Mongering?

 

 

 

The Chinese community has been part of our culture and society since the early 1800's. It is a community that has worked hard and contributed extensively in building this country. It is a cohesive community that has helped shape the Australian way of life. 
 
Of course, it means many Chinese living in this country are actually 3^rd, 4th and 5^th generation Australians. Sadly however, throughout this time, many within the Chinese community have been subjected to prejudice and fear, in particular when it comes to the real estate market.
 
This notion that the Chinese may buy everything up and leave the rest of us with nothing is a false prejudice that has been in existence for quite a long period of time now. Indeed, the White Australia Policy was established in 1901, with a view to minimise the number of Chinese immigrants that were coming here due to the Gold Rush.
 
We can look back over 100 years ago and gasp at this concept, however to some extent, many of these beliefs have continued to trickle down through the decades and are still rife within Australian society now. 
 
This current fear that the Chinese might buy all our property once again is nothing but xenophobia.
 
So far, the reports have mainly come from columnists, some real estate agents and property buyers who have missed out on the purchase. I would very much like to know how these participants have managed to work out that the Chinese looking buyers they have been referring to (who were successful bidders) were not Australian citizens.
 
And this is the problem with this current fear - there is no hard data at all to back up the severity of the concern. 
 
To this end, the Foreign Investment Review Board has been rather secretive in not providing actual data to the public on direct purchases of local real estate by foreign investors. They would certainly have the data to publish. But they refuse to do so. Perhaps if the department was a little more transparent, these fears, such as the ones expressed in the article below by Paul Sheehan, may subside.
 
http://www.smh.com.au/comment/investors-become-like-bulls-in-a-china-shop-20131027-2w9ki.html
 
As you will read, all Paul Sheehan could provide in this article is hearsay. That’s literally all the evidence he had to rely on - A friend who had to compete with Chinese looking persons at a number of auctions. Plus a number quoted of $16 billion dollars in “fund flow” which no doubt covers all assets - not just real estate.
 
I don’t want to pick on Paul, as this is one of the many pieces we have seen from agents, property investors and columnists alike.
 
And I do agree, having a situation where real estate prices are pumped up by foreign investment is not good for local residents. Obviously, we need to watch for this.
 
However, the rules regarding foreign investment into existing property is very clear, that being - one can’t do it.
 
If you are a temporary resident, you need to apply to the Foreign Investment Review Board and, assuming you are given permission, you can only buy one property and you must sell that property once you leave the country (as seen by clicking on the link below) -
 
http://www.firb.gov.au/content/_downloads/AFIP_2013.pdf
 
Foreign investors are able to buy into property developments, which I think is perfectly acceptable as that demand gives the developer the pre sales required to construct the property and therefore add to the supply of real estate in this country.
 
In summing it up, no one has given me hard evidence that foreigners, whether they are Chinese or not are flouting our rules.  And until we do get hard evidence, I think those who are fear mongering should be seen as purely that – fear mongers

 

[staringclown 53]

 

Perhaps the FIRB should provide detail data on the matter...

 

SQM: Chinese Property Investors taking over the Australian Market - Fact, Fiction or Fear Mongering?

 

 

 

 

A fair assessment of the level of Chinese foreign investment I'd say. I suspect most of the hype is "buy now or miss out forever" rubbish.

[Maria Santa B.A. 1]

A fair assessment of the level of Chinese foreign investment I'd say. I suspect most of the hype is "buy now or miss out forever" rubbish.

Pure chow-mein ...

[Dose 11]

As I've said before...you'd be hearing about this in the USA and Canada is this were the case.   -If you are looking to blame anyone go to one of your parent's dinner parties.

 

But...the FIRB will not disclose available information and NSW just announced an unexpected Surplus due to property transactions.  Odd.  

 

-----

 

...I would really like to hear Claudia's views on this matter.

[staringclown 53]

As I've said before...you'd be hearing about this in the USA and Canada is this were the case.   -If you are looking to blame anyone go to one of your parent's dinner parties.

 

But...the FIRB will not disclose available information and NSW just announced an unexpected Surplus due to property transactions.  Odd.  

 

-----

 

...I would really like to hear Claudia's views on this matter.

 

The NSW government have stopped Eddie Obeid's rorts and that's added more than a few million to the bottom line...

[Mr Medved 36]

http://www.macrobusiness.com.au/2013/11/chinas-historic-property-overhang/

 

I found the comments amusing.

[cobran20 96]

Attached is the front page of a reasonably size publication at the front of one of my local RE agents. It is distributed in both China and Australia. It has the following two URLs that point to the same organisation:

 

http://worldbridge.com.au/

http://propertychina.com.au/

 

It contains all types of information about the local suburbs, including info about 'Top Schools'. So is it surprising to see these articles?

 

SMH: Access all areas, bought via Beauty Point

SMH: Home truths

china.pdf

[cobran20 96]

I went to the large fruit & vegetable markets in Sydney at Flemington this morning, which have a large asian presence. I could not believe my eyes when I saw a female RE agent, dressed in black, holding RE leaflets written in (presumably) chinese.

 

Looks like they're out to get that last $ from wherever they can!

[sydney3000 17]

I was offended when I ad hoc tried to buy a 1/2 charcoal chicken for $4.50 and once ordered I was forced to look at the menu board again to realise it was a 1/4 charcoal chicken. How soon will we see a 1/8 charcoal chicken?

[Mr Medved 36]

I was offended when I ad hoc tried to buy a 1/2 charcoal chicken for $4.50 and once ordered I was forced to look at the menu board again to realise it was a 1/4 charcoal chicken. How soon will we see a 1/8 charcoal chicken?

 

Was it cooked with gutter oil?

 

http://www.businessinsider.com.au/chinese-street-vendors-use-gutter-oil-2013-10

[cobran20 96]

Was it cooked with gutter oil?

 

http://www.businessinsider.com.au/chinese-street-vendors-use-gutter-oil-2013-10

 

Hence the expression 'chew & spew'.

[sydney3000 17]

Was it cooked with gutter oil?

 

http://www.businessinsider.com.au/chinese-street-vendors-use-gutter-oil-2013-10

 

Thank you. Now I have something I can use as definite proof when arguing that the Chinese will never surpass other cultures economically.

[tom 20]

. 1.3 million would buy me a few similar type of places around the world though...

I'd start with one of these.

http://www.altamirasantander.com/paginas/fichasegundamano.action?cInmueble=11135&idMiga=0&ran=02112013122633789

You get residency thrown in too.

I've got a job again but I'm still a few years off buying one of these.

[sydney3000 17]

I'd start with one of these.

http://www.altamirasantander.com/paginas/fichasegundamano.action?cInmueble=11135&idMiga=0&ran=02112013122633789

You get residency thrown in too.

 

Looking at this empty abode I just realised what would make me buy property. If they throw in a housewife it might coerce me to commit.

[tom 20]

Looking at this empty abode I just realised what would make me buy property. If they throw in a housewife it might coerce me to commit.

Yes that part of Spain certainly throws up the pick of them too.

[tor 90]

Looking at this empty abode I just realised what would make me buy property. If they throw in a housewife it might coerce me to commit.

Hell even in Sydney a decent maid only costs 180 a week. I am quite a tidy person so I only have her in 4 hrs a week to do laundry and such; works well.

[Dose 11]

But no Museum of Ham in SYD...

 

I digress...

 

No articles blaming foreigners for another weekend of record-breaking results.  So it's just our parents.  All's good, again.

[sydney3000 17]

Hell even in Sydney a decent maid only costs 180 a week. I am quite a tidy person so I only have her in 4 hrs a week to do laundry and such; works well.

 

With a house that size and my big persona I was thinking about full service assistance.

[cobran20 96]

It's the Honkers followed by Indonesians!

 

link

 

[cobran20 96]

Are we having fun?!

 

Chinese buyers to have access to Australian property listings through new website

 

 

ustralian property owners will soon be able to have their listings viewed by Chinese consumers, with REA Group revealing plans for a Chinese language property site myfun.com. 

The term “my fun” translates to “buy property” in mandarin and will feature realestate.com.au’s property listings in Mandarin, from new apartments to house and land packages.

REA Group managing director and chief executive officer Greg Ellis says Australia is experiencing unprecedented levels of demand from Chinese consumers in the residential, commercial and new development property markets.

“We wanted to create a customised user experience for Chinese consumers to ensure they could access relevant information in a format that would suit their property search requirements,” says Ellis.

“All property listings are provided in Mandarin and property enquiries will be directed to a Chinese-based myfun.com representative who will connect potential buyers to the property’s real estate agent.

“Myfun.com will provide agents the opportunity to reach a new and engaged segment of prospective buyers,” says Ellis.

Ellis says the new property site is likely to reduce the number of days on the market and will generate higher sale prices due to competition.

Myfun.com will launch in 2014.

[cobran20 96]

Fed’s Fisher: Chinese driving Australian house prices

[Dose 11]

Fed’s Fisher: Chinese driving Australian house prices

...a Fed President quotes The Institoots's auction clearance rates as hard-data fact.   Enzo has truly arrived!

 

Not finished with his overseas studies he then gleans Australian demographic data from the trading floor of Packer's Palace...we are through the looking glass.

 

Is his next stop Vegas to identify a US Housing recovery driven by horny, gin-fuelled 21-year olds?

[steveno 1]

...we are through the looking glass.

Is there any source of reliable or verifiable information/data about any housing or property transactions in Australia?  Could this have been the best the Fed President could find?