What will stop the BOOM in Sydney and Melbourne

That really is a worry. At credit card interest rates no wonder the banks are so profitable.

 

Front page of the Australian today.
Concerns. Slowdown accepted.
Let's see if the other states (qld, SA) pick up the slack...

 

@melbournian @Kangabanga Where theres a will, theres a way

China's Investors Get Creative About Capital Controls

 

Never doubt the extent to which a determined state player can go if it sees outflow as a threat.

 

Yuan is not a freely convertible currency.
There is a serious doubt about health of chinese economy amongst western investors, this is precisely the time when china NOT want domestic outflow draining its forex reserve.

 

Just wondering what did we earn from the decade long mining boom? Our 1.5 trillion dollar debt?

 

That article is outdated, note the november 2016 date. Back then they just started the clampdown.

Yes they still have ways, but its getting very difficult now, even big chinese companies face difficulty now and many big deals have been withdrawn/cancelled.

This is a january 2017 article which shows outflows from payments slow sharply from Dec 2016.
China’s Yuan Outflows Plummet, Showing Capital Controls Pay Off
[An equivalent of a net $900 million worth of yuan left China via payments in December, State Administration of Foreign Exchange data showed Thursday. That’s less than 2 percent of the record amount in September, and compares with an average of $25.8 billion a month last year.]
I'd say that is a drastic drop. and a successful clampdown.

China Finally Halts Outflows. Now What?

China has since eased those controls again for companies, april article.
China eases yuan outflow control in sign of boosted confidence

 

just for the records minus $2B from the Sydney property market.

"In measures to be outlined later today, the Foreign Investor Surcharge Duty will be doubled from 4 per cent to 8 per cent, while the annual land tax surcharge on foreign buyers will rise from 0.75 to 2 per cent a year, The Daily Telegraph reports.

Premier Gladys Berejiklian and Treasurer Dominic Perrottet are due to make an announcement about the changes, which will come into effect from July 1.

The measures are expected to raise almost $2 billion over the next four years to help struggling first-home buyers, thenewspaperreports.
...
The latest property investment data shows that one in every 10 buyers in NSW is a foreigner."

 

News says that house prices have gone down for the first time in 18 months. How much has it gone up in the last 18 months, since the last time it went down? My head hurts.

 

I assume you're being rhetorical, but just to put this out there, +11% year on year (so not exactly 18 months). However in the last quarter Sydney has grown 0%. with the last two months recording declines, I think it looks like a downward trend is here.

 

http://www.theaustralian.com.au/bus...n/news-story/79d5dcc0600130cfdf998e42ddc76263
[Because we are a little behind in timing to understand what is happening in Australia, it is best to start with Vancouver. The western Canadian city, like Melbourne and Sydney, has seen enormous Chinese buying of real estate. Vancouver prices are higher than Sydney or Melbourne. And, again like Melbourne and Sydney, a series of clamps and higher taxes have been imposed on overseas investors in Vancouver.

Accordingly, Vancouver has seen an easing of prices but, more importantly, volumes have been slashed because sellers can’t move their stock. In April the volume of detached Vancouver houses sold fell a staggering 50 per cent. Apartments fared much better but were also sluggish.]

As I said before, its them commies partly responsible for the boom

 

So if you'd sold when the downtrend was 'here' 18 months ago when we had the last 'fall'.....

 

Who said anything about selling? Just observing trends.

 

Well in the last 18 months rates did fall to all time lows, Chinese were running money out of China like crazy and APRA had not gotten started on the banks yet.

We'll see if the tide really goes out this time.

 

There u go with ur commie comments - stop blaming the Chinese for everything. If u want to say they bought over the power companies then yes valid comments coz they did. Vancouver is diff from Melb and Sydney. Back in late 90s it was popularly known as hongcouver. U previously said majority of Mainland chinese were the ones buying up in the units apartments yes but in Melbourne units apartments are known to go backwards OTP and have minimal to no growth very different to Sydney in areas like chatwoods and Eastwood where some are sold in millions. Millions are more reserved for penthouses in Melbourne. some otp units even sold for the same price they bought 4-5 years ago so how is that a boom?

The mainland Chinese and non commie Asians were responsible the boom of suburbs like glen waverley, Balwyn, Doncaster to heights unseen in other suburbs but not the whole of Melbourne. Auctions are one way to boost prices and not every 2nd auction is a commie mainland Chinese bidding across every suburb in Melbourne

As mention western suburbs are not mainland commie money. And northern as well. In btw Taiwanese and hongkies and singaporean Chinese ain't commies. They do speak mandarin in Singapore in btw

 

Ah yes, I am one of them. Restrictive policies would be an understatement.

Certain races get 5 - 10% discount on anything they buy in life including houses, tax cash handouts, multibillion dollar contracts, and federal law / state law doesn't apply to them. For the other races, too bad. Happy to be investing here. Doesn't matter if it's booming or busting, as long as my money and my family's money is here and not there!

 

That is what a lot of ppl dun realise in Melbourne there are far more se Asians than commie mainlanders. And all the se Asian developers know this buying up big we talking billion dollar devs in central Melbourne cbd from spring st to Melbourne central station down to tallest building in Melbourne 108 in sthbank. Many families basically move their whole finances literally emptying their bank accounts property to move here like urself.

 

Are u referring to Malaysia?

 

China is hooting for free trade and the US is talking about protectionism... go figure who is commies these days

 

Was only taking the lead from the attractive poster who blamed communist mainland for the boom