foreign investment for Mel/Syd property down

this was reported on kohlers finance report today:
http://www.abc.net.au/news/business/kohler-report/

interesting in one of his graphs, foreign investment as a proportion of total demand has tanked in Sydney and Melbourne- quite substantially. This means they are getting out at a faster rate than non-foreigners at a rapid clip.

Im a bit surprised at the significant falls. I would have thought the low dollar and instability in foreign equity markets would keep these numbers high...maybe they are going elsewhere other than Sydney and Melbourne, or maybe some other asset classes altogether.

 

The source for this data is the NAB Quarterly Australian Residential Property Survey Q2 2015. There is a lot of very good info there.

 

@JDP1

Seems like Tokyo and US back on radar for mainland Chinese investors!

 

Thanks @keithj, so where and how did you get that report from ?

 

Tokyo is going gangbusters - also NYCity and a lot of Boston.

 

Hhmmm perhaps the USA loopholes have been identified and expanded upon to get swathes of foreign investment through. As any of the many Aussies who bought up Florida, Georgia, Texas, Arizona, etc. Knows; buying in the US is pretty easy. Well, buying some states, anyway, is.

NY state, Oregon, Washington state, and Hawaii can be a bit harder, however. Still, a lot of foreign capital is moving in there.

As for Japan, no idea; not a market I keep tabs on.

 

Japan is slowly turning into another "Hong Kong" like where wealthy Chinese are snapping up units like no tomorrow and a lot of shops are opening just to target Chinese tourist.....

Not too sure if anyone here been to Hong Kong recently, but because of this "China Gold Rush", Hong Kong has basically lost it's unique charter and all you see on the street are jewellery shops after jewellery shops and pharmacy shops and pharmacy shops it's literally every 5 seconds you will spot one.......it's actually pretty sad....

 

@sumterrence so the extremely high property price in Hong Kong is mainly due to the wealthy Chinese investors buying up the stocks not because if he land scarcity ?

 

IMO, Hong Kong is a place for those main-landers to get asset transfer/relocation (by setting up nominal companies etc.).
Tokyo/Japan is a risky place due to potential earthquakes, as well as declined population. Most investments are for short-term profit.

 

Home ownership has always been a dream in a lot of countries, Hong Kong's high property price are mainly due to high land demand that is no doubt about it, however, it could have been rising in a much slower and healthy pace if it were driven by gradual scarcity rather than the wealthies trying to gamble on the property market.

When developers see these gambling behaviours becoming main stream they will start to target these wealthy people to make more money out of them. And the average employees in Hong Kong will become harder and harder to get into the market without substantial support from their family because the price just gone too ridiculously high.

Having said that during late 90s Hong Kong experienced a serious property crash and it didn't fully recover after SARAS (during SARAS there was another property bust which after a few years made a number of novice investors rich where they bought it during that period).