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Anecdotes of Chinese Investors

Discussion in 'General Property Chat' started by wombat777, 7th Oct, 2016.

  1. wombat777

    wombat777 Well-Known Member Premium Member

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    Might be an interesting thread to share anecdotes that relate to the mindset and goals driving overseas Chinese Investment.

    The interesting one today was from a discussion I had with a building designer in Brisbane.

    Quite a bit of the small development activity in Brisbane that they are seeing is driven by the quest to build equity/capital to support visa applications, I guess under the "Business and Innovation" category. Not sure myself of course the intricacies of the process/rules/criteria for this. Also from this anecdote, the story that the interior selections had been done to Chinese taste which apparently won't suit the local Brisbane market. Perhaps not an issue if the developed properties are being sold to other Chinese investors.

    Please share any stories you've heard or things you've witnessed.
     
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  2. TMNT

    TMNT Well-Known Member

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    I thought the motto of chinese investors at auction is
    "if you are competing against someone at bidding, you dont want to lose face, so bid at all costs"

    and yes I have heard of a few people pay $50k on top of the $600k price because they knew the other bidder
     
  3. JDP1

    JDP1 Well-Known Member

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  4. thatbum

    thatbum Well-Known Member

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    I've never heard of this attitude being attributed to the chinese before.
     
  5. TMNT

    TMNT Well-Known Member

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    really? ive heard it a few times over the years...... or ar eyou referring to chinese and not other asians.... I might have done the politically incorrect thing and bunched them together :(
     
  6. thatbum

    thatbum Well-Known Member

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    Well I've never heard it attributed to any asian culture, but I don't have as much depth of knowledge on those that aren't chinese admittedly.

    Honestly though, it doesn't sound accurate because that idea of "at all costs" pretty much goes against the grain of the financial astuteness that I know is part of chinese/asian culture.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    I know some very experienced Chinese investors who set their limits and walk away.They walked at $1.8m on one site 8 years ago and bought something else that same day.

    You only lose face if you have committed to someone else and fail to deliver.
     
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  8. willair

    willair Well-Known Member Premium Member

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    Maybe about a year and half ago we had a letter from a Chinese investor on a property we control.. Everyone in that small street on above 800sqm's would have the same letter..Rang the number,3 people turn up one Lady 2 men and i don't think they come down in the last cyclone..They had a list 7 properties from west end too waterfront 1000sqm's Balmoral for buy now future development 28 day cash settlement wiwo..
    I never sold them anything,but i was with them when they bid on a riverfront 1000sqm's block that was on their list ,that block did sell above 3mill they went too 2.7 mill and just walked away..
     
  9. C-mac

    C-mac Well-Known Member

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    Im surprised to hear no mention yet of evidenced Chinese superstition-based behaviours playing out in our local markets. Some examples to get you thinking...

    • Whole apartment buildings built without a 4th / 14th / 40th etc. Floor numbers
    • A new 6-story building near to me in the Ashfield, Sydney area (Chinese-favoured suburb) that, upon nearing completion, had sales flyers produced for floors #1, #2, #3, #5, #6 (Penthouses) ONLY in Chinese language, and then had a SEPARATE flyer produced ONLY in English for ONLY the 4th floor apartments... basically flog the unlucky apartments to westerner, and all others to Chinese
    • Houses getting reno'd prior to sale that add a wall in an entrance hallway to block the view directly out the end of that same hallway to the backyard (Chinese superstition - or 'stupid'-stition as I believe it to be... believe that if the back door can be seen from the front door then the luck will 'run straight out the house'). I actually observed a couple of listings that had been renovated to fix this feng shui/superstition issue with an internal wall addition! Both listings were for properties in Chinese-favoured areas
    • Marketing of sales prices with many 8-s in them (one memorable listing in Guildford was a house for $688,888)
    • The rise of the Chinese phone-to-Mainland bidder/buyer buying on behalf of a Chinese national at auctions
     
  10. MTR

    MTR Well-Known Member Premium Member

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    Melb, Ringwood, Croydon been a hot spot with Chinese buyers, buying development sites to land Bank this is what re agents have advised.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    That could be considered two-tiered marketing and is an illegal practice (happened alot pre-internet days where locals paid a lower price and holidaymakers or interstate buyers).

    They should be reported to the OFT.
     
  12. Tony3008

    Tony3008 Well-Known Member

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    Bright Victoria Point Pad Near Etihad Stadium! - one bedder in Docklands, asking $358,888