Australia- Chinese expected to invest $60 billion in housing in 6 years

1430992026032ARemember readers, if it’s happening in Australia, its happening here in NZ too. Perhaps even more so given NZ’s comparative lack of regulation on overseas purchases. The Financial review reports-

Credit Suisse produced a landmark analysis last year revealing the scale of Chinese housing investment for the first time. Now they have revised those original forecasts dramatically upwards in the wake of the latest foreign investment figures.

Over the next six years to 2020, Chinese spending on housing will more than double what it has been over the previous six years. China has become Australia’s biggest source of approved foreign investment for the first time after a $12.4 billion splurge on real estate in the last financial year.

Of that total around two-thirds, $8.7 billion, was spent by investors based in China or by new immigrants from China on residential real estate, according to the Credit Suisse analysis. That represents an increase of 60 per cent on Chinese spending in the year. It is also equivalent to 15 per cent of the national housing supply.

Purchases are concentrated in Sydney and Melbourne where Chinese demand is the equivalent of 23 per cent and 20 per cent of new supply, respectively.

The surge of the Chinese money is taking its toll on prices, especially in Sydney, where prices lifted 13 per cent last year, and in Melbourne, where prices were up 5 per cent. “If Chinese buyers are on the verge of snapping-up the equivalent of a quarter of new supply, we can see why house prices in both cities have outpaced income growth,” the lead author of the report Mr Hasan Tevfik said.

Funny ain’t it, that while the effect of Chinese real estate purchases are so clearly defined in Australia, we keep getting told by John Key and Bill English there is no such effect here in NZ.

More deceit and duplicity from the masters.

Financial review- Chinese investors to pump $60 billion into housing



Categories: Australian Politics, NZ Politics

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1 reply

  1. Not apposed to anybody buying in New Zealand as long as I also have the ability to do the same in their Country, should I choose.

    But that is not the case with most Countries. So we should have the same rules for them. Not born here, rent, end of story.

    Having said that prohibition is very hard and usually fails, there will always be loopholes. Designed into it. So as to look like doing something is being done, but not actually doing anything, the devil is in the detail.

    We have many examples here. Electoral law, donations, 3 strike for what it does not count, etc etc etc

    Like

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