From The Australian:
A string of vendors throughout Sydney and Melbourne are clamping down on settlement terms on multi-million-dollar deals as volatility in China’s financial markets raises doubts about Chinese buyers’ capacity to pay.
Chinese buyers agent Jie Feng likes to start business conversations off with two questions: where is your money, and how long will it take you to get the money out of China?
“I have to ask these two questions right away,” the Sydney-based buyers agent said. “Because if the money is in the sharemarket they might have problems.”
…Locally, some executives have seen some effects of the stockmarket rout filter into Sydney and Melbourne.
In property, agents are reporting spikes in foreign investment while local vendors clamp down on settlement periods in fear of buyers who can’t pay.
I expect that in time this will also filter into the banks, who will tighten lending criteria for banks, just as it did in the GFC when Chinese stocks crashed.
