Australian Real Estate 2016

Posted: January 4, 2016 in Uncategorized

I am not a specialist on real estate…but I cannot ignore it.

The real estate market will continue to slow down.

There will be no crash because the media will say there is no crash (too many interests), but really not the year where you want to try and sell.

Why?

China is starting to crack down in the capital exit.

I already warned in April and September 2015 on this blog that a Chinese capital exit crackdown will have full on implication for Australian real estate. And at that time everyone else was bullish.

In August China had a soft brake in capital exit and, to the surprise of most commentators, Australia real estate had the first real contractions in years.

In my blog I wrote that it will show for real how many Chinese buyers there are (a lot). There are many ways to circumvent the foreign ownership rule.

Now, in 2016, the Chinese government is starting to seriously worry about the capital exit suspending at least 3 foreign banks as the Yuan has a strong depreciating bias.

So, the Australian economy is slowing down and the Chinese investors are disappearing….make your sums.

By the way, the media will always tell you that is just a mild slowdown…as you do not have a day to day stock market they will be careful not to induce a panic event. Unless you will try to sell for real.

But do not panic. If you do not need to sell – no worries (a bit like the share market…)

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