Australian real estate: hold on to your friendly Chinese neighbour

Posted: March 21, 2014 in Uncategorized
Tags: , ,

China is having a major problem and already in Hong Kong some of the mansion bought by Chinese millionaires have been sold for 50% less as the rich have to sell fast to avoid bankruptcy (HSBC stress test).

So what?

Well the statistic says clearly that the latest surge in Australian real estate price has been driven by Chinese buyers and speculators (it is very easy to avoid the foreign ownership rules). Credit Suisse estimates that Chinese investor spent USD24 billion in the Australian Real Estate in the last 7 years (mainly Sydney and Melbourne)

So if the turmoil in China continues, the Chinese will start selling guess what…after Hong Kong there is Australia and Canada.

So if you do not want the value of your real estate to keep where it is or growing….don’t let the Chinese neighbour go home.

PS lot of the houses bought had a collateral …commodities…so it would be a vicious circle

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