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China Sharemarket rout - side effects

Discussion in 'Property Market Economics' started by Gibson, 10th Jul, 2015.

  1. Gibson

    Gibson Well-Known Member

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    Wondering what the implications, if any, of this week's major sell down on the Chinese markets will have on global markets. In particular on those real estate investors who have bought here over the last few years.

    Anyone seeing ripple effects on the ground in Sydney, Melb or indeed other parts of Australia yet or is it too early to tell?
     
  2. leon brown

    leon brown Active Member

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    Probably a bit early to tell in my opinion , I don't think its over for china's market slide
    but remember so far this is barely a correction compared to their performance over 12 months and a lot of experienced investors would have been patient enough to hold and see the signs in the making and are most probably looking for a place to invest elsewhere now.

    With lows rates and low aussie for the foreseeable future the property market should perform
    regardless of a china "mini" correction .IMO
     
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  3. radson

    radson Well-Known Member

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    I liked this article:
    http://www.slate.com/articles/busin...why_its_actual_economy_will_be_just_fine.html

    Yale historian Jonathan Spence once famously posited that since the times of Marco Polo, the West has invariably seen China through the same lens that it sees itself. As global equity markets swoon in response to the recent meltdown in Chinese stocks, these deep-rooted biases are in play once again. The Western version of China has darkened out of fear of asset bubbles, excess investment, and debt overhangs—precisely the same imbalances that have afflicted the major economies of the developed world over the past two decades. The truth is far less bleak.
     
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  4. Gibson

    Gibson Well-Known Member

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    How's this for a front page headline of the Weekend AFR today "Shanghai Rout hits property developers"

    A few of the large mainland developers that are building here in Sydney have had a shocking week w their share prices dropping. Some of which have paid overs for large dev sites

    image.jpg
    ows
     
  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Money always finds a safe haven. In 1987 when the Aussie share market crashed it caused a flood of money to enter the real estate market which caused a property boom.

    How much do they want for that Roller in the newspaper advert at the bottom of the newspaper article?
     
  6. Gibson

    Gibson Well-Known Member

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    Ha, you should give Gazza a call (his number is in the attached image) probably going for the price of a one bedded in Marrickville these days
     

    Attached Files:

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  7. jpcashflow

    jpcashflow Well-Known Member Business Member

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    Hello,

    I think this is going to have a major effect in terms of international trade. But for property, I think its going to create a bit of a property boom, more and more people will steer away from shares in CHINA and maybe invest more in Australian property.
     
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  8. Be Developer

    Be Developer Property Developer Business Member

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    Not sure about listed developers!

    But, plenty no name high net worth individuals from asia are looking for some serious $$$$$$ cash Investment in Australian market.
     
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  9. C-mac

    C-mac Well-Known Member

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    Hhmmm more capital pouring to our property markets because AU property is a safe haven. Well, I guess someone needs to buy these mountains of poorly built, endless unit stock in inner Sydney, Melbourne, Brisbane etc.

    Or... will the escaping capital find its way into more establishing freestanding houses?
     
  10. Tekoz

    Tekoz Well-Known Member

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    Yes, some of those people from mainland China are also looking to buy/invest in Campbelltown region too.

    So it is not just Sydney area.
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Curious - How do you know?
     
  12. Tekoz

    Tekoz Well-Known Member

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    I went to Campbelltown inspection in the past two weekends.
    They're going to the exact same spot where I go to inspect :-/

    The asking price was $500k for a house with large land components (> than 550 sqM) and they already make an offer for $650k on the spot !!!!

    [you can notice from the branded apparels and expensive branded hand bags along with their ride Merc, BMW and Audi]
     
  13. WinDyz.

    WinDyz. Well-Known Member

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    get Ready for more Chinese waves coming in the next few months or year ahead....

    Lots of them will be looking to park their money here! Mainly will be Sydney and Melbourne
     
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  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'm curious how you differentiate between foreign investors and Australians of other descents?
     
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  15. Tekoz

    Tekoz Well-Known Member

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    yes, because from their accent and manner.
    [Note: I've seen the agent was quite irritated when one of the man who inspect the bathroom, dediced to use it for himself quickly or sneakily]

    How did you know mate ;-) you've seen that already coming ?
     
  16. WinDyz.

    WinDyz. Well-Known Member

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    Their Sharemarket crash + the value of our dollar....
    They want a safe investment & with the low value of our dollar... more will be looking for save heaven investment in Australia
     
  17. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Not every person of asian appearance and with a non-australian accent are here carrying bags of overseas investor cash. Go to a SS/PC meetup sometime, not everyone there had english as a first language and I would dare say none have overseas moneybags funding their investments. They would have worked hard just like I do, and choose to invest.
     
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  18. Traveller99

    Traveller99 Active Member

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    I lived in China for almost a decade. Xi Jinping's corruption crackdown coupled with Canada's tightening of foreign purchasers is having a huge effect on property in Australia. China is a tale of two countries: the immense poverty and the uber rich with the latter having grown enormously in just the last few years.

    The Chinese are incredibly business savvy and opportunistic, with property seen as an excellent source of parking wealth in stable democratic countries. There was a survey conducted in 2012 that found of the one million millionaires at that time, 40% were planning to migrate or the plans were already in place. We're almost in 2016...

    With reference to the stereotypes above regarding branded goods and the Chinese, one must take a look at the massive profits being generated by luxury brands in China. To a keen and knowledgeable eye, a Mainland Chinese is often easy to spot in crowd of people.
     
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  19. Be Developer

    Be Developer Property Developer Business Member

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  20. Tekoz

    Tekoz Well-Known Member

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    @Be Developer[/USER]: if that's the case I guess yes, the property price will always be high and never crash for a good location.

    This article also affirming what you have said above mate: http://www.propertyobserver.com.au/...on-to-bring-australian-house-prices-down.html

    It's from the expert market analyst Alan Kohler (Eureka Report).

    Therefore investing in Sydney in particular is not a bad idea this year.
     
    Last edited: 21st Jul, 2015