Is the chinese drama and ARPA's crackdown stopping the boom in QLD, NSW?

I was wondering... I was looking at places in Parkwood, Southport and also in parts of Brisbane... seem especially in Parkwood/Southport that the market picked up and houses were snapped a few months ago... even with asking prices 10-20% more than say 2-3 years ago.. but now they just stay in the market... and no one is willing to buy at the 'new prices'.
Given that a lot of the crazy bidders in Sydney are chinese who came with lots of money and no need for mortgage, and the bank's making it super hard to get an investment loan right now for mum and dad's investors (I know first hand..)... do you think the market is going to relax or even go backwards?

 

seriously? You believe everything those tabloid newspapers write?
OMG the guy bidding has black hair, he must be an overseas chinese investor.... But why let facts get in the way of a good story.

 

Chinese nationals can only buy brand new - and most of them overpay for OTP. These properties are not auctioned generally, so "crazy bidders" on existing property can only be Australians or permanent residents.

Really? I'm sure most use a mortgage and those that have "lots of money" are good savers.

Really? All you need is a 20% deposit and if you can't service a loan at 5% or lower interest rates, then how will "mum & dad" investors afford the repayments when IRs are at 7%?

 

NSW is already booming there are several suburbs that have gone up 30% in the past year. As for Brisbane I’d hazard to say it's got more to do with local economic conditions than foreign investors. Focussing specifically on foreign investors it’s understandable why the smart ones wouldn’t be going for Australia at this particular point in time- Australia’s currency is set to keep falling relative to the USD and America is recovering again. I haven’t investigated this but apparently the Chinese are also buying up large parts of Tokyo so maybe they have decided to redirect their money.

On a side note my brother works for a Chinese businessman who is a very wealthy multi-millionaire. He doesn’t waste his time buying Australian residential properties. He invests his money predominantly on international shares and also purchases Australian farms with export potential.

 

I'm not seeing any evidence of slowing of the markets I'm watching closely , which is UNS in Sydney and a cheapie area in Brisbane . Quite the opposite .

Auction down the road from us was expected to go around 2.7 . 9 bidders and went for 3.3 . Didn't go so I don't know how many " crazy Chinese " where there .

In Brisbane two months ago we had time to look and take our time . Now anything decent is selling fairly quickly , but no obvious price rises so far .

Must admit I haven't seen to many crazy Chinese anywhere . The ones I've seen , look quite normal . The only crazies I've seen today have been " Aussies " ...

Cliff

 

the fundamental problems with the housing market in Aus were already in existence long before the media started this "chinese buying frenzy" hype, its just another absolute classic way for tabloids to distract the masses and shift the blame to a certain racial group to draw attention away from any discussion on real underlying economic problems affecting housing

 

I think Brisbane will heat up but maybe not the Gold Coast. Lots of tall apartments and where are the jobs?

 

No I think GC will have a lot of growth due to the low AUD. Tourism is going to go crazy here.

But on the flip side I don't like investing where it's so tourism dependent. Too volatile for my liking.

 

Don't agree..the GC is competing with others for tourism dollars - cairns, bris, Sydney even Townsville. It'll see groeth, but not as much as Brisbane. The jobs usually win at the end of the day.

 

We'll see. Tourists generally flock to Sydney, Gold Coast, Cairns. Brisbane, Melbourne etc generally aren't at the top of the list. I think it'll benefit a lot from the falling AUD but as you said how much remains to be seen.

 

This is the missing ingredient for a Brisbane boom - where's the employment?

 

take your racist hat off, you might have a better understanding of what is really going on, not all mum and dad investors are like what you have described.

 

Its not just property these chinese people are buying, its milk powder as well!

Had to drive to 5 different places just to find Aptamil 3 for my daughter.

Then again, my sister was guilty of it too, she just flew back to Singapore with 10 cans of milk formula because its half the price here.

 

The jobs market in brisbane is picking up. Have seen slow and gradual optimism for non mining jobs. More of the high value higher paid jobs, which is a good sign.

 

I believe qld as a whole is quite self sustained from an economic point of view! The foreigners are an extra kick to the economy but shouldn't be the main driver.

 

Definitely, way i see it, less money from overseas investors into Sydney/Melb markets means less capital gains or equity to pull out for local investors when price growth stalls, who are the ones flocking from those two booming markets to Brisbane at the moment thinking things are cheap here.

with commodities, oil and gas tanking more this month as well as the China stock markets, its only a matter of time. remember the short period late 2011 when property had a slight slump?

 

The Gold Coast and Cairns go pretty crazy when the visitor numbers are high and the tourist industry is going well. Not a place I'd like to visit when in full swing though.

 

I think pockets of GC offer great prospects, especially around/near to the hospital. Whilst it is heavily tourism-dependent, the hospital and university help diversify the area somewhat.

 

Wheres the employment for the mini newcastle boom?? I dont see it

 

I had an interesting chat to a colleague today.

His father in China is currently looking to buy in Sydney. Apparently has funds available in USD, so the big fall in the AUD against the USD makes property purchases attractive - even though Sydney has seen significant growth.

The son is searching for land but is having trouble finding and securing a block with the lack of land supply.

Also an interesting anecdote is that some land estate developers are selling land without having the DA approval for the estate. Sounds pretty risky for anyone that buys like this. He had that opinion too.