Buyers cause property bubble frenzy in Sydney
![[Deleted User]](https://wf.vanillicon.com/v2/f78c5d87f1e70cd8b35f638b46b1ac50.svg)
[Deleted User]
Posts: 4,845 Forum Member
✭✭✭
Chinese Homebuyers Thronging Sydney Make Mini-Bubble Frenzy
By Nichola Saminather and Iain McDonald Jan 29, 2014 12:22 AM
Tina Ford, an Australian public servant, said she could hardly believe it when her three-bedroom apartment sold this month for A$1 million ($877,000) at an auction in which all 16 registered bidders were ethnic Chinese.
“I’m over the moon, I’m gobsmacked,” said Ford, 53, adding “I suspect that overseas investment, Chinese or otherwise, is certainly pushing prices up, but from a vendor’s perspective, I’m ecstatic.” Such buying by locally resident Chinese and those from mainland China is inflating housing bubbles in and around Sydney, where prices in some suburbs have surged as much as 27 percent in the past year.
Demand from China has also driven prices higher in other parts of the world. In Hong Kong, the most unaffordable housing market among 360 cities in a survey released this month by Belleville, Illinois-based urban development consultancy Demographia, home prices have doubled since 2009, driven in part by an influx of wealthy buyers from the mainland.
In Vancouver, where 15 percent of the population speaks a Chinese dialect as a first language and which is the second-most unaffordable housing market in the survey, ethnic Chinese are the largest group of foreign buyers, according to auction house Sotheby’s. Mainland property hunters were the top overseas buyers of residential property in Singapore as of August, government data showed.
Surging demand and rising prices are frustrating even some Chinese buyers. “I give up,” Yan Liu, who moved to Sydney from China in 2006, shouted to the auctioneer in the middle of hectic bidding for a two-bedroom unit in Eastwood, which sold for A$575,000. “I’m buying for investment. The rent would be too low.”
Read More: http://www.bloomberg.com/news/2014-01-28/chinese-homebuyers-thronging-sydney-create-mini-bubble-frenzy.html
Please come and buy from us.
Personally, I need the money.:D
By Nichola Saminather and Iain McDonald Jan 29, 2014 12:22 AM
Tina Ford, an Australian public servant, said she could hardly believe it when her three-bedroom apartment sold this month for A$1 million ($877,000) at an auction in which all 16 registered bidders were ethnic Chinese.
“I’m over the moon, I’m gobsmacked,” said Ford, 53, adding “I suspect that overseas investment, Chinese or otherwise, is certainly pushing prices up, but from a vendor’s perspective, I’m ecstatic.” Such buying by locally resident Chinese and those from mainland China is inflating housing bubbles in and around Sydney, where prices in some suburbs have surged as much as 27 percent in the past year.
Demand from China has also driven prices higher in other parts of the world. In Hong Kong, the most unaffordable housing market among 360 cities in a survey released this month by Belleville, Illinois-based urban development consultancy Demographia, home prices have doubled since 2009, driven in part by an influx of wealthy buyers from the mainland.
In Vancouver, where 15 percent of the population speaks a Chinese dialect as a first language and which is the second-most unaffordable housing market in the survey, ethnic Chinese are the largest group of foreign buyers, according to auction house Sotheby’s. Mainland property hunters were the top overseas buyers of residential property in Singapore as of August, government data showed.
Surging demand and rising prices are frustrating even some Chinese buyers. “I give up,” Yan Liu, who moved to Sydney from China in 2006, shouted to the auctioneer in the middle of hectic bidding for a two-bedroom unit in Eastwood, which sold for A$575,000. “I’m buying for investment. The rent would be too low.”
Read More: http://www.bloomberg.com/news/2014-01-28/chinese-homebuyers-thronging-sydney-create-mini-bubble-frenzy.html
Please come and buy from us.
Personally, I need the money.:D
0
Comments
Five things to realise about property in Sydney
1. There is nearly always a property boom up and running, or about to start
2. Australia has a much higher % of home ownership than the UK
3. The average Aussie home is double the size of the average UK home.
4. I believe that people start on the property ladder at a much younger age than in the UK
5. Sydney is the most beautiful city in the world.
Thanks for that and having visited Sydney four time quite recently I agree with what you say.
Denmark, Germany and Switzerland.
Who has the highest Bulgaria, Italy, Greece, Ireland and Spain.
Which countries have the most youth unemployment, poverty and alienation and who have to export their young because they have no jobs for them.
Just as observation as to how the obsession with homeownership and rising house prices over everything else isn't necessarily a great thing. No more housing booms and busts.
And of course if you want all your new housing bought up by Chinese millionaires is that really good long term.
Well in my experience property has always been a good long term investment, the problem is not everyone realises that.
Most people just want a secure home for their family. Fewer people can afford that as prices go up.
But for the Im alright Jack middle aged bought my house for £4000 on an average salary and have seen it rise shed loads just by sitting on your settee brigade like you - well you just couldn't give a sows ear.
The advantage about increasing home ownership is that it spreads the wealth so it is not in the hands of the few.
How has that happened with the growth of buy to let and foreign investors buying up the housing stock. Home ownership is declining and transaction volumes are still well below what they were a decade ago.
But you don't want to expand home ownership really because you support rising house prices.
In the end house price rises are just inter generational theft. We are just robbing our kids and grand kids when they have to buy a house.at these higher prices.
Well I must admit I am happy that our government in the UK now has a policy to support first time buyers who are struggling to raise a deposit although a similar policy has been available in Australia for about 10 years.
How can that be when all my children and even one of my grandchildren are also home owners.
Good point. If one understands the nature of money and banking operations, this is certainly the case.
Banks have always preferred lending for mortgages rather than businesses because real estate is seen as the safest collateral. Invest in property and let credit and bank lending do the work for you.
This has always been the case as far as modern banking is concerned, which is also why financial collapses always go hand in hand with housing downturns.
For those who are hoping for a housing collapse, it might happen, but what's the point if you lose your job as well?
There will always be a considerable risk when embarking on home ownership but in the event a downturn it can be more economically viable for a government to provide a safety net for homeowners as opposed to providing housing benefit in the rental sector.