Chinese losses on Australian property mount

Tuesday, 11 November 2014

Given the official pressures coming to bear on the safe haven Chinese trade in Australian property, I thought I’d take a look at the market dimensions of the trade.

If a Chinese investor is buying Australian real estate but remains in China then the critical calculation is the value of the property in Chinese yuan. Here is the chart comparing the AUD/CNY and house prices over the past two decades:

And the money chart, the growth of Australian property values in Chinese yuan:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.