China problem for property market?

Discussion in 'Property Market Economics' started by einentiva, 29th Apr, 2020.

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  1. einentiva

    einentiva Well-Known Member

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    In the news a lot lately. I am concerned about the worsening relationship between Australia and China on the Australian property market

    Please discuss
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Residential wise it will only affect the OTP and brand new markets - so no major issue. Can't see it really making an impact on the "second hand" resi market....

    Commercials - now there's a whole new different story. I'll look forward to @Scott No Mates @Beano and @Omnidragon to comment :)

    The Y-man
     
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  3. Waterboy

    Waterboy Well-Known Member

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    Time to diversify the Australian economy. We're too reliant on one country. It's just common sense - it's very risky to keep your eggs in one basket.
     
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  4. Morgs

    Morgs Well-Known Member Business Member

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    Regardless of political rhertoic Australia is and will remain a great place to live.
     
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  5. Illusivedreams

    Illusivedreams Well-Known Member

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    Even best friends have feuds at times. It’s healthy to push back at times.
     
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  6. Speede

    Speede Well-Known Member

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    What we are seeing is .... tensions between US and China......since Morrison is a puppet.....he is having a go at China..... apparently Chinese leadership don't really care about Morrison that is why Andrew Forrest is getting involved....and getting some peace in between them....
     
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  7. gman65

    gman65 Well-Known Member

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    If you are worried about the affect of Chinese not buying in the market you are in the wrong market. Relying on just one factor for property growth is a recipe for disaster.
     
  8. Jezzah

    Jezzah Well-Known Member

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    Clearly this isn't what the OP and thread is aiming for but talking to a local agent in the past week they mentioned they had a client that was putting a house up for sale to get out of Australia and take the funds back to China.
     
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  9. Scott No Mates

    Scott No Mates Well-Known Member

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    They'll need to park it elsewhere otherwise they'll never get it back out.
     
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  10. Tattler

    Tattler Well-Known Member

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    If it means no more huge apartment builds then I am OK with it.
     
  11. spoon

    spoon Well-Known Member

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    There are broadly two types of Chinese, those who believe in the Government and those who don’t. That is the same for Australians . For those who do, obviously they will be patriotic. For those who don’t and know the Government well, they will plan accordingly. I don’t think the Chinese are as herd-minded as we were led to believe. But of course if we lock them out, then it’s our own making.

    Lets get real, among the English speaking world, Australia is the more Chinese friendly. And they know.
     
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  12. Beano

    Beano Well-Known Member

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    Too early to see the sales trend but agents are telling me about "deals" falling over and I have been asked if I would be interested in putting in a offer.
    Suggestion from agent ...offer something between book value and failed offer price. (Listed property company)
    Again too early to see rental trends but I would say retail $m2 would fall.
     
  13. MTR

    MTR Material Girl Premium Member

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  14. Toon

    Toon Well-Known Member

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    On a more positive note:

    Apartment sales: The chinese are back

    "As the ambassador threatens that China might stop buying Australian meat and wine and sending students to Australia, in the property market the reverse is happening — the Chinese are back buying Australian apartments.

    It’s a dramatic and surprising turnaround. While the buying is being executed by locals, they have close links to those on the Chinese mainland.

    Early in the year, when the coronavirus was ravaging China, there was a sharp reduction in the Chinese buying of apartments in Melbourne, Sydney and Brisbane.

    Around six weeks ago, as the crisis eased in China, Australia emerged as one of the world’s best performing COVID-19 nations, increasing our attraction to Chinese property buyers."
     
  15. MTR

    MTR Material Girl Premium Member

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    Cant open link?
     
  16. Toon

    Toon Well-Known Member

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    Sorry, it's behind a paywall - but I tried to quote the most important part.
     
  17. MTR

    MTR Material Girl Premium Member

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    Thanks

    Still need to soak up the oversupply. China wont save us, I cant see this happening

    This is a link based on research, but this is prior to coronavirus ***** hitting the fan
    Top 10 Danger Zones for 2020
     
  18. Toon

    Toon Well-Known Member

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    I didn't say China would save us, but just trying to show that not all is doom and gloom.
     
  19. MTR

    MTR Material Girl Premium Member

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    Sure I get what you mean:)

    my concern is that I believe something like 35% of sales contracts are falling over at the moment, its just a sign of the times.

    the topic is in relation to China and impact on property, but how our property market goes is dependent on our economy. If we end up with 10-15% unemployment, it will all head south regardless
     
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  20. Trainee

    Trainee Well-Known Member

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    Mtr do you see any possibility that we might get 10+% unemployment, but only for a few months, then it comes back to say around the 8-10 level as we have a recession?