There's still confidence in the market

Chinese buyers are still snapping up Australian property despite all the warnings of an oversupply and credit tightening by the banks.

Macquarie Park buying frenzy as Chinese buyers snap up 230 Park One apartments hours | Daily Mail Online

 

Isn't that the one near the Uni?

I wouldn't really use that as an indicator one way or the other. Headline would be better as "Chinese buy small apartments near University that their kids will go to" .

 

I'm not really familiar with the Sydney market but I'm just amazed at that horde of Chinese buyers lining up outside. Interesting that 80% of those buyers were Chinese Australians meaning little to no problem sourcing finance.

 

It's crazy... I walked into one of those display suites a few years ago at Macquarie Park and the scene was exactly the same. Just sh#tloads of Chinese people everywhere. (I blend right in).....

 

The developers laughing all the way to the bank.

 

these prices are pretty shocking as well.

it reminds me what happened and happening in Beijing and Shanghai.

 

There are so many new apartments being build around that area. I came across this as well which is interesting: Department of Planning and Environment - Macquarie University Station (Herring Road)

 

I tend to also think if/when they build really good new apartments in Eastwood that they'll do extremely well too, demand-wise.

 

Did you grab yourself one while there Gockie ?

 

Yep.but mostly limited to Sydney and Melbourne.
Brisbane and gc is increasing but still clearly behind in this regard.

 

The volumes of ABC buyers (Australian-Born-Chinese) appear to be swelling in recent months. My guess is that because China have made it harder to get money out of China, coupled with the rising 'Foreign investor tax'/special stamp duty (aka the Chinese tax) for foreigns buying property in Vic (7% Chinese tax), NSW (4% Chinese tax), and QLD (3% Chinese tax) that Chinese nationals are scraping their pennies together and having a relative/family member who are an ABC to buy the property in their own name. This means they avoid the extra tax and being put under the FIRB microscope. I think they would also benefit from easier access to cheap loans since it is the ABC who will be taking out a loan locally for the property, not them. Just as the foreigner pays more stamp duty; they are also getting hit with higher interest/lending rates from lenders too, so getting an ABC to buy it in their own name skirts these extra costs too.

London and Vancouver have had this going on for several years now as both cities have introduced Chinese/Russian taxes (well, foreigner taxes, but it is clear who they are intended for!). There is nothing that can be done, short of a "source of funds" audit up front for every single buyer of any property. That'll never happen and even if it did it would add thousands to the purchase costs for the buyer :/

I know informally of several ABC's who use the 'grandmother' system (I think thats how the Chinese slang roughly translates?); meaning, one person who buys dozens of properties in their own name (for others, and since there is no 'source of funds' audit, they can get away with it), and collects a cash-fee from the real buyers, for their time/services. I dont know how this is possible though, as any loans would have to be in the ABC's name only so they might hit a servicing wall (unless... they are establishing trusts for each and every purchase?)

Anyway, the real problem with all this is that mini-bubbles keep etting blown up because properties are still being overpaid for.

 

@C-mac great post!

It seems that no matter what kind of roadblock the regulators put up they always manage to find ways around them.

 

Not at that time but it was really a huge frenzy!

 

The site at the corner of Epping road and dehli road also has a project "the Lachlans" happening. One side faces the Macquarie Park cemetery. Wonder what the demand is like.

 

Chinese investors were piling into China's stockmarket right up until it crashed last year so I'm not sure this is a good thing. We should probably be looking at whether there's confidence from domestic buyers.

 

@larrylarry I do wonder what a cemetary does to interest in property (both westerners, and Chinese buyers - amyone know of Chinese superstition against cemetarie? Considering the obsession to avoid the number #4 because it sounds like the word for 'death'; I'd imagine living across the road from 'death' would be unappealing for them too?).

Obviously there are exceptions suvh as elevated Waverley houses that oversee a cemetary first, but then a beautiful sea view beyond that.

 

i feel if you buy in chinese centred areas (given u got the budget) eg. Chatswood, Strathfield, Burwood, the price will just keep going up. In Chatswood 2 bedroom new apartments has gone up from $750k off the plan in 2012 to now $1.8mil+ off the plan and they still get snapped up, even second hand ones

 

I do know someone who bought an apartment facing a cemetary in Parramatta and sold it for a nice profit. They didn't mind living there in the first place. I would think it's likely to be a turn off than a turn on.

 

But people are just dying to get in there, it's the dead center of the suburb

 

I can tell you they are good neighbors.