VIC China slowdown and Aussie Property price

Discussion in 'Property Analysis' started by Riddle, 24th Oct, 2019.

Join Australia's most dynamic and respected property investment community
  1. Riddle

    Riddle Member

    Joined:
    21st Jul, 2018
    Posts:
    6
    Location:
    Melbourne
    This might not be a right forum but I do not have the permission to post in Property Market Economics yet.

    What do you think about China economy slowdown? Will more Chinese come and invest in Aussie properties?
     
  2. Francesco

    Francesco Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    517
    Location:
    Canberra, Brisbane
    There will always be a flow of financially independent migrants from unstable economies to Australia (if Australia maintains its global stability). China figures because the pool of humanity there is immense and economic dynamism is undeniable. More or less flow depends on political stability and right now, it is coming from Hong Kong. For example:

    More young people in HK looking at emigration
     
  3. marmot

    marmot Well-Known Member

    Joined:
    23rd Jan, 2018
    Posts:
    957
    Location:
    N.S.W , W.A
    One of the things that the freedom activists/troublemakers are fighting against is the very high cost of housing caused by the flood of chinese millionaires pushing up prices.
    If you cant beat em , you might as well join them .
     
    Francesco likes this.
  4. Francesco

    Francesco Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    517
    Location:
    Canberra, Brisbane
    Do not blame high cost of housing on immigration as it is a part of a complex interplay of macro economics.

    We know our social provision of welfare for the aged requires tax revenues.
    Tax revenues are paid over many years by young, healthy and productive adults.
    Mere dependence on natural birth is insufficient, so immigration is a must.
    Not just any migrant will do as welfare is provided from birth, through working life to retirement. About 41% of households receive more benefits than the taxes they paid.
    Immigration of unskilled, low paid will not do so the wealthy, healthy, young and educated should be welcomed.
    Asset prices like houses going up is a collateral consequence.
    Asset prices increasing accompany more consumption, employment, tax revenues and support the overall social fabric of society.

    My two bits on the macro economics of the Lucky Country.
     
  5. Riddle

    Riddle Member

    Joined:
    21st Jul, 2018
    Posts:
    6
    Location:
    Melbourne
    Thanks for the response everyone. The point that I really want to discuss is what happening with the current bounce back of property market. Is that going to be mini boom or it gonna shoot up as a result of more Chinese migration.