From the high priest of Triguboffinomics, Gotti, at Dad’s Army:
For the first time in many years leading apartment developers have become very nervous about a pending fall in the values of Sydney and Melbourne apartments plus parts of the suburban residential housing market in both cities.
Already, prices of inner city Sydney apartments have started to fall — something we have not seen for many years.
…The current danger has been triggered by inexperienced politicians in both Canberra and Victoria simultaneously deciding that there is community support for attacking Chinese and Asian buyers even though they are the dominant buyers of major parts of the residential markets in Sydney and Melbourne.
So, in chasing votes, Tony Abbott & Co have blundered into very dangerous waters by imposing new penalties. But there is a period of grace and so we are likely to see a number of Chinese families sell out rather than risk penalties should their ‘front’ activities be revealed.
Good. This will loosen the market, suppress prices and bring macroprudential pressure to bear helping lower the dollar so we can compete in stuff other than selling out our children.
