China’s little emperors prop-up Aussie housing

By Leith van Onselen

Bloomberg’s Narayanan Somasundaram has penned an article examining Chinese-Australians’ widespread use of foreign money to purchase Australian homes, which is supporting house values, particularly in Sydney and Melbourne:

Han is among scores of buyers who with the backing of relatives in China are underpinning a housing market in Australia that’s coming off the boil. More than half the buyers of Chinese origin are supported financially by relatives residing in the world’s second-largest economy, according to McGrath Ltd., Australia’s only listed real estate agency. The firm’s China desk has assisted in sales worth A$140 million since it was established in September 2013…

Five out of the seven properties sold earlier this year by First National Real Estate in Lindfield — a suburb about 13 kilometers north of Sydney’s business district — were to buyers of Chinese origin, according to Lan Zhang, a director at the firm.

“Chinese origin buyers who are either permanent residents or citizens are among the biggest group of people who visit our open homes,” she said. The buyers were able to exchange contracts within a few days of agreeing on a deal, suggesting financing was not an issue, she said…

Demand in Australia is so strong that online real estate listing firm Domain Group has since late 2013 published a glossy weekly in Chinese, which it distributes at 400 points across Sydney and Melbourne. The site is looking at more ways to connect with Chinese Australians as it expects demand from the community to only increase…

My “off-the-record” discussions with real estate agents suggests that Chinese demand is still running strong, particularly in Melbourne’s east (where I live). However, whether these are mostly legal sales to Chinese residents using foreign money, or illegal sales to non-residents, is unknown.

Anecdotally at least, there have been multiple auction sales (often via translator) to Chinese buyers over the past year in my suburb, with some of those homes now left empty and becoming derelict.

Moreover, a reader of MB with whom I have had discussions with has attempted on several occasions (via FOI) to chase-up results of investigations pertaining to illegal sales lodged with FIRB/ATO, only to be denied access on confidentiality grounds.

So basically we have no way of knowing whether the ATO’s enforcement activities pertaining to illegal property sales to foreigners are working.

It’s time for a detailed update, Scott Morrison.

[email protected]

Unconventional Economist


      • Yes, I’ve heard the ATO is contacting people of Chinese origin who DON’T own property and have warned them they’ll face legal action if they don’t do something about their propertyless state.

      • Chinese who don’t own property? That’s like Strayan’s who don’t drink VB. Can’t have that!

    • “So basically we have no way of knowing whether the ATO’s enforcement activities pertaining to illegal property sales to foreigners are working.”

      The appalling lack of data continues

      The sham continues

      The Qld govt is looking for ideas to increase the housing supply and reduce the cost of housing. Please feel free to contribute
      Here is a brief submission I prepared earlier
      ” According to Assistant Federal Treasurer Kelly O’Dwyer in her inquiry into housing we should be encouraging foreign investment in new dwellings to increase housing supply.
      Purchases by of existing Qld dwellings by foreign nationals are illegal without prior FIRB approval
      The NAB residential property survey indicates about 8,000 existing Qld dwellings were purchased by foreign nationals in the last year.
      According to the FIRB annual report the FIRB approved the sale of 921 existing Qld dwellings to foreign nationals.
      Proposed Qld Govt Strategies
      1. Require proof of purchaser’s FIRB compliant residency status/approval to register the transfer of title
      2. Audit existing Qld residential title records for FIRB compliance asap
      3. Resume any non-compliant properties. Either use the dwellings for public housing or resell to fund enforcement strategies”

      Feel free to cut and paste and submit

      • Thanks Patrician, I’ve just done so. Not that I’m expecting anything good to come out of it but it’s worth a try.

    • Malcom Turnbull has been called a great policy maker by some writers in these pages. The reality is that Malcom Turnbull is not a great policy maker as the restrictions of access to ATO/FIRB information about what, if anything, they are doing about illegal property purchases is not publicly available.

      It is fraudulent to call Malcom Turnbull a great policy maker.

      • I haven’t seen Turnbull called a great policy maker on these pages. I have seen constant reference to his lack of policies, his lies and his scare campaign on neg gearing. I don’t think many here are in support of Turnbull at all, but I can’t talk for the rest of the population.

  1. Han, 32, an Australian permanent resident, bought the house on 688 square metres of land in Ringwood East, about 30 kilometres east of the CBD, after a five-month search. His parents sold a 23-year-old two-bedroom apartment in Beijing for 8.1 million yuan ($1.6 million) to help pay for the property, he said by phone.
    Fair play if they are permanent residents, which the article in full says they are.

    But what about the supposed capital controls out of China?

  2. Its okay because these sales will continue forever they will never stop until every house in Australia is Chinese owned. Its just the market working as it should, ask Reusa.!

  3. TailorTrashMEMBER

    “It’s time for a detailed update, Scott Morrison”……………we don’t comment about on money issues ………

    • sydboy007MEMBER

      These issues could easily be resolved via a contribution to the free enterprise foundation…oops i meant the free home ownership foundation.

  4. Enforcement theatre just like the security theatre at our airports.

    I travel regularly to the PRC on work but living in north west Sydney makes me feel like I’m always there!
    Except anecdotally most of the Zhounguo Ren that I see here are ready to add pressure to our hospitals & pension systems and not form part of the workforce or Gen Y&X voting demographic for those hoping that we will eventually out vote our aging parents.

    Anyone aware of the demographics of Sino immigration?

    • TailorTrashMEMBER

      I am amazed at the number of Chinese grandparents?? appearing in Hornsby …….this seems to be exploding in numbers …..and the chemist shops seem to be doing a brisk trade in handing out bagfuls of prescriptions ………… there some new rort that has not been reported yet ? ………..

      • Glad I’m not the only one to notice.
        So are we (reuniting ) importing the Middle kingdoms 1 child 4 grandparent policy?
        Seems that way to me.

      • Inner West Sydney, I see a lot of older Chinese parents walking along the bay area where i live now. And it has been something that has increased in the last 2-3 years.

      • In Beijing I’ve had a lot of people say the only reason for migrating to Australia is the social security. They do not expect to work here. They will retire in Australia and bring their parents. Australians need to wake up to the fact the migration paradigm has changed.

        As far as I can tell, there are a few different groups of Chinese migrants, one you would classify under the old paradigm as productive, good for oz migrants. The others (don’t work, have the wechat business or are landlords, don’t pay taxes), not really good for Australia in the traditional sense, especially considering the family reunion implications, the term I’ve reluctantly come to using for that is parasite migration, good for them, not so good for the host except for the initial sugar hit of their money coming into the country. This is not based on what I see in Australia, this is based on what my students tell me their friends and family are doing in Australia. Interestingly my students agree my definitions. They think Australia is crazy rich to accept people like this.

      • In the long run, its not good for them too.. because surely, the host (i.e. Australian civil society with social safety net) will die.

      • A year or two ago on MB I started pointing out that the Chinese buying had little to do with making money and more to do with exporting loads of ill-gotten gains and securing PR for family members in a non-extradition country.

        Naturally some of the commentariat couldn’t believe that people might, you know, actually emigrate from a smog-infested, overpopulated hell-hole with no social security. That I must be some kind of rashist ranting about a fifth-column when the truth was that they were simply smart investors taking advantage.

        Well the chickens are coming home to roost. The population ponzi is real and our public infrastructure will not be able to cope with all these unproductive new residents. But hey at least they stopped the boats, right?

      • Medicare should be a photo ID because these people are passing around using others medicare cards to get free health care, medicines, hospital access. Everything they touch becomes a rort which the rest of us pay for. What other reason for health funding blow outs?

      • @fezy

        May be hard to put photos on medicare card with 5 names on the same card. Also we’ll need penalty for doctors who fail to positively verify identity of patients.

    • The ones I know of aren’t on the pbulic system. They pay in full for medical (which I suspect is why the Aus government loves their fresh money). Most of them are here on babysitter arrangements – both aprents go out to work and the grandparents look after the kid. Cheaper than childcare I guess. Contrary to beliefs, it is very very hard to get elderly parents supported by Australian purse strings nowadays. In the past it was really easy.

      • That depends on whether they paid ~$50k per person queue jumping visa or not. If they did, they would be settled in about a year from application and get access to medicare straight away, but not centerlink. Alternatively they could just join the queue for 10 years and just use visitor’s visa in the mean time. In those situations, they would need private health insurance which costs $300/month per person.

    • Deutschland fur Deutschlander auslander raus !

      No seriously, Aussie born get pensions and other stuff.

  5. I thought the Chinese factor had declined? Geez, lucky I don’t believe everything I read.

    Have a Chinese-Aussie friend at work who is looking to buy in affluent Melbourne suburb. His salary is around 70k I would guess, but his budget is around a mill. Fair to assume he’s getting some help from his parents back home. It’s all legal though, he’s got PR.

    • Tis the Asian way – not just for emperors – and not just for Chinese – yet for well off Asians who follow a filial deity type honor code.

      Well off Koreans have a deal where the groom’s parents buy the house, and the brides parents the furniture. In China the groom’s parents can be up for more than simply a house and furniture as there are less eligible women.

      In return the parents can expect to be looked after to some degree in old age by their parents – it doesn’t always happen, so you just create laws for that.

    • Decline is all relative – we no longer have 1.3 billion trying to get in, only 900 million. 30% reduction on a big number still leaves a big number 🙂

  6. LOL. Straya, bow down before your little Chinese emperors.

    How did it come to this? who the f knows, and who the f cares. Its over.



    • Same thing happening in London, Vancouver and a variety of other cities, as the privileged and wealthy Chinese hide their money outside the mainland, anticipating the inevitable revolution

  7. How are they earning so much money back home to make these purchases? Not the local residents, but the foreign investors………… perhaps its time to move to China to earn enough to live in Australia…….

    • Option 6. Borrow in Mainland China against export production and export stuff to Australia. Sell the stuff in Aussie and keep the proceeds in offshore bank account, or – buy a house – swapping the collateral of the Mainland borrowing. Roll over the Mainland debt; add to it with some more invoicing and……

    • The money they “earned” isn’t real – when you have a massive property (and stock market) bubble as what has happened in China fuelled by debt, you can then transfer that money created through debt out and buy “assets” in other countries. Take this for an example, a modest family might have bought a place in Mt Druitt for $100k ages ago, then due to Sydney’s property bubble and madness, someone then buys that place for $1 million. They didn’t “earn” that 900k through working. Replace Mt Druitt for a suburb of Beijing and you get the same thing. The difference is that in China, there’s a crapload more people (and “houses”) to create the debt fuelled “wealth”.

      • Real estate is the way they made money. Most patents would have properties they picked up while cheap… A few 100k yuan. These days they would sell for maybe just under 10mil yuan. The corruption is with the buyers who could afford 10mil through dodgy *cough* company *cough* loans.

      • Legitimately? During the revolution a lot of wealth was transferred. A lot of productive capacity was suppressed (through mismanagement or xenophobia). When China started opening up, money flooded in. Why not? You had a well educated society with a strong bureaucratic history which would work for peanuts. For decades now the west has been getting China to do everything productive. This is a business transaction. Did anyone not think that 1 party in the transaction might gain something from it? For them its all grow grow grow.

        You don’t have to be dirty to make money in China. But timing is important. Thing is, there are still a lot of Chinese alive today whose parents or grandparents had wealth before the CCP took it all away. They get to sit in their tiny little apartments and look out at the descendants of the takers flaunting their capitalism (those who had things taken, were most likely blacklisted and therefore would have difficulty rising up again).

        You’d have to be an idiot to be Chinese and leave all your assets within the CCP’s reach.

  8. They should just change the names of Sydney and Melbourne to New Vancouver and Even Newer Vancouver.

  9. Go the Chinese.
    We should all be thankful that Australians truly advocate for their children and let the Chinese take over our country from under our feet.
    Thank you Australian government for thinking so little of our kids.
    Thank you boomers for enslaving our kids to high rents.
    Thank you so much Australia for allowing Chinese to borrow at 0% deposit loans to buy our properties that our kids have to slave away for decades to scrape together a deposit.
    We are backward and cruel.
    While the construction industry seems to have no shortness of work propping up ugly apartments in the city, we have a housing commission disaster and waiting list that is inexcusable.
    And those real estate maggots – bring back hanging.
    Thank you boomers for the fantastic legacy you leave our children….greed, self-centredness, hypocrisy and ignorance.
    You boomer generation will go down in history as the most selfish, most hated generation in history, and for good reason.
    You have done everything to fuel this crisis for our kids.
    You have done absolutely nothing, collectively, to stave off the impoverishment that our children will face.
    The sooner you all pass, the better off our children will be.

    • Unfortunately you are wrong there on the last point.

      When the boomers pass it is likely that they could be replaced by something worse.

    • Except the buyers are aussie citizens… It just the parents are bankrolling the purchase… The same thing happens with anglo aussie citizens too.

  10. No prosecution in the last 8 years means the government is putting he interests of the banks and their shareholders (foreign and local) over the interest of its human constituents.

  11. The tone here is quite defeatist if I can be so honest. Regrettable as the fight can be won.
    I urge you all to keep up the good fight and contact your local member, the ATO compliance hotline if you suspect a breach ( and spread the word with anyone who will listen (want a BBQ stopper…@[email protected]$$) that this activity is pricing out local tax paying citizens and their families from buying a home in the suburb they grew up in. It is distorting the market and above all else, much of this activity is illegal.

    • A question upon notice about the number of prosecutions (not disposal orders) is a good idea.

  12. Your view (the article) is very narrow. You need to understand the values and history of the Asian region including India. Until recently (last 10-15 years), credit was not widely available so families would save for generations and live together well into marriage and having their own children and co owning property. Security was quite literally land, house and gold. They know no different for generations. Their priorities and values are not beech/travel/experiences so their incomes go largely into property. This now includes all the Asian immigrants (residents and citizens) coming to Australia. Now compound this by two factors. The Chinese are also big gamblers. Again its cultural. With housing and property markets exploding and their historic predisposition to property for security the locals are buying primary residences and many investment properties purely from the belief that all of India and China want to settle in Australia (also NZ) and so you simply can’t go wrong buying property here. Now funding is two fold. Our banks are throwing money (may be changing now but very marginally – they need to continue loan book expansion) at investors with any sort of a cash flow and then yes they also get funding from China extending co ownership into Australia and NZ. Will this continue perpetually. No. In the past, properties were bought with cash. Today it’s debt (including the source coming from China – I can’t verify this) locally or internationally funded. All those that bought houses and apartments last year are now under water with the sinking Aussie dollar and falling house prices which is underway even in ssydney even detached housing. But they don’t believe (this I know cause I know mulitiple Chinese origin investors) the housing market will crash even if there is a marginal correction now so will continue to buy. They also mostly are naive to the macrofactors and debt dynamics present in China so believe expansion in China will continue unabated, that social and environmental changes won’t come into affect and don’t understand that when our unemployment goes up, immigration will be closed to those who believe they will eventually migrate here. If the two coincide. A medium well done landing in China and Australia goes into recession. All Chinese buyers will vanish over night. The truely mega rich in China will not be affected by this but they buy globally and on the fringes and this has been true for decades of all foreign nationals. My view. Watch the Aussie housing market crumble if our macrofactors keep deteriorating. We’re headed that way as I type. Happy days.

    • Nice analysis!
      Also most of the young buyers loaded up huge debt to buy properties in China too. Many are borrowing deposit with higher interests via illegal channels and borrow the rest from banks.

    • The CCP created 20trillion or whatever of wealth out of nothing by allowing the populace to own what was previously all govt property. A portion of this is now being ploughed into Aus. These people have never experienced a housing downturn either here or there. It looks like a one way bet. If and when this ceases to be the case, the outcome will surely be seismic.

    • Good points and I will add a few.

      Local Australian banks are cracking down hard on foreign income sources used to qualify for loans for domestic property. I know first hand of one prominent mortgage broker to the Asian community who was audited and quite a few existing clients had their loans called as a result of dodgy foreign income claims.

      It is true that a property in China can be used as collateral for a loan that will fund the purchase of a property internationally. It is a scam and it has seen some crack downs on it (from a judge I know) but it is so rampant and the Aussie banks are accepting it. This is a huge risk for the Australian banks as the borrower really has no intention of paying off the loan. In fact, there is a belief I have heard that the bank only has the right to claim the Chinese property in a default and the Australian property is safe. Most haven’t heard of Operation Fox Hunt 🙂

      Chinese buy in growing markets. The current slow down in property price growth here and rockets in China are having an effect with the higher end buyers (very different group to the people Popcd talks about). We have a partner over at present for 6 months who was dragged into a property tour on the Gold Coast. Normally with 40 Chinese on a bus, you would expect 20+ sales – none were closed on the trip and only 1 afterwards (required an 8 year guarantee on rental yields for a serviced 1 bedroom apartment).

      I would be careful reading anything into the Bloomberg article – it smells of desperation to keep the dream alive. There will always be demand in China for off-the-plan, same from India, Malaysia etc etc. They will not be the reason for a market correction, but they may make it worse if the worm turns – Aussie property drops means an opportunity cost if the Chinese market continues to surge.

      • Good to see the banks do something about that. I’ve heard of that trick for too long. Though the news haven’t filtered down to real estate agents yet. They are still saying “don’t worry about loans, our broker will get any required amount through overseas income”.

      • I’d just like to confirm what OJ said, we deal with different Chinese. I deal with the honest middle class Chinese professionals. They work for foreign companies as engineers, sales, hr etc. They’re the equivalent of the Aussie middle class. They don’t have their businesses, they’re basically not corrupt (no one counts the payment to get your kid into a decent kindergarten as corruption because EVERYONE has to do that). Not all Chinese are corrupt. The ones I talk to would need to work in Australia and would make excellent non rent seeking aussies under the old migration system. When I inform them of the reality of Australia these days their eyes fill with horror and they start to rethink their migration dreams to Australia.

    • Spot on. The bubble here will burst and the all Chinese buying will not be able to prevent it. Its going to be horrific for Australia, but a lot of Chinese are going to lose big too as they do not understand the dynamics of Australia. I have no concern for the rich Chinese, but I do feel for the average Chinese, esp if they have migrated here searching for a better life. They didn’t do their research and they’ve been deceived by the con that Australia has become just as much as the locals have.

  13. Nah. ATO’s too busy going after some tradie who made a $50 error in his tax return. Big picture guys.

  14. Only a week ago a property was sold on sydneys north shore in Killara. It was the biggest sale ever for a reported $12 million to a buyer from china. Blatantly reported in the media and sweet fuck all said or done in regards to it being completely illegal. I dumbly believed the new fines launched in November would halt this but honestly its all allowed and the rest of us here can go to hell. This in part is what is proping up the market in sydney. I really am starting to hate this country with a passion.

    • BoomToBustMEMBER

      My opinion is you need to wait for the bubble to burst on its own, then you will see the gov rush into action. No-one wants to be accused of popping the bubble, especially a politician. Meanwhile the gov just gathers information and waits patiently.

      I would be 100:1 odds that once the bust hits they will change to a land tax (state gov) to attempt to make up the shortfall in revenue.

      FedGov will crack down on the illegals and force sales to prop up coffers.

      • On the other hand, if the bubble bursts, then all the more reason to encourage illegals to prop it back up again.

      • BoomToBustMEMBER

        once the bubble bursts there will be very little they can do about it, and they know it. They are already exhausting most the ammunition. GFC2 is on the way, the money will flee Australia. This time it certainly is going to be different, but different in a bad way and its going to be big and long.

      • Look at the high level chess being played.

        The banksters know ususry may be up, so now just trading in for all of the real assets.

        Pump, dump, come and buy and game over.

  15. The other factor to consider is that Chinese money can help prop up housing prices, but they can’t and won’t pay off the ridiculous mortgages currently held by Australian residents (unless all Australians decide to cash out at the same time which would probably create an unstoppable housing price crash). And if they’re bringing in money from China, then they aren’t doing the local banks any favors either. So if the domestic economy tanks taking the AUD, domestic income, and therefore rental yields with it; will the Chinese continue to invest here? If the answer is ‘yes’, then it may be best to leave this country to its ultimate fate as a renter of Chinese capital and find better fortunes elsewhere (i.e., go full Lord Dudley). If the answer is ‘no’, then patience may be the only reasonable course of action. The government has proven time and again that it refuses do anything productive; not even a measly 0.25% rate deduction to help the non-resource export sectors of the economy.

    Unfortunately, the problem will have to fix itself. It’s like waiting for your friend who is a raging alcoholic to wrap his car around a tree before he finally finds God and gives up the drink.

  16. I was working out in the Bentleigh and Brighton area of Melbourne yesterday and noticed a few people of Asian descent.
    But not so many as the Caucasian and Mediterranean that were driving by.
    A real question we have to ask is are we annoyed because of the locking out of Australians by the Chinese,
    or because this hot money is preventing we Europeans from becoming the Reusa that is inside us all.
    For a lot of people I’d imagine it is the second, they only care because it is affecting them.
    If they were able to get in, and those worse off couldn’t, well, that person could always go and get a better job.

    • This is not a local problem. People who work get taxed outrageously, and people who own assets have seen the value of those assets skyrocket. Those who work look to the government to enforce some kind of equity. There isn’t any. Large multinationals pay no tax, the FIRE industry spivs and those who they sponsor make a fortune, those who deal in trade able goods and take commercial risks and employ people go broke. This has been happening around the world as a result of QE and interest rate suppression.

  17. Well ive mentioned this before.
    Two desks from where i sit. Junior employee 1 year out of uni, Chinese parents own multiple businesses in indonesia. He owns 4 properties. 1 is a 2 story 4×2 with a pool in Applecross area (thats an expensive area) that he constantly complains isnt large enough, he is the sole occupant in that one, his GF lives in a 3×2 flat in south Perth and the other two last i asked about it where sitting empty and have been for quite some time. Interestingly he is again on holidays for 2 weeks and mentioned he was flying to Syd and Melb with his GF. Now im wondering if he has gone on property buying trip.

    • Richard, switch off the lights.. oops.. our Chinese overlords still there grab that last jar of Vegemite when you leave.

      hahahahah.. there will be poetic justice when scum like you will be the only ones left in AU.

      • Rich, Bit slow on the uptake, aren’t you? It is not “going”… Its all gone.. FYI, Vegemite isn’t even Aussie anymore.. the boomers sold it off like the rest of it.

        Despite being a newly minted Aussie, I still get a jar over here to the US whenever someone comes over.

      • @md

        We do have a choice. There’s more than enough people that don’t want this to vote against it. We’ve just got to be coordinated.

    • richard, I”m not sure if you’re one of the many of trolls that have inundated this site, or not, however, if you are not, than you will benefit from understanding the base psychology and historical nature of humans. The paradigm shift will not take place at a gen us v gen them level. The next phase it moves into grand nepotism shoot off – ie where the pie has reached max point and is now being divied up.

      A good place to start

      • Definitely not a troll. I don’t want Australia to be inundated with rich foreigners. I fucking hate what’s happened to the opportunity, the future, the everything. My kids have watched as their world has been fucked over. They find it hard to do everything we cruised through.

        I don’t know what @Mav meant by me being scum. Am I scum because I want opportunity for my own kids? Isn’t that what we do?

    • Richard, you are basically asking why North Korean children have not risen up and installed democracy. They’re born of the system.

      • Thanks. Yeah okay. Maybe there’s some truth in that.

        This site is so fucking toxic. I get called scum by Mav because I’m looking out for my kids.

        I was banned from this site a year ago while people call me scum. It’s BS.

        How about it moderators. Where’s the line and why is it different depending on whether your views fit or not?

    The extent of the challenge faced by post-boom WA is beginning to emerge in the Pilbara, with empty homes, big debts and taxpayer-funded white elephants.

    More than 140 Housing Authority homes are vacant in Karratha — 114 of which are set aside for State Government employees but no longer required.

    maybe someone can let them know there are plenty of bargins to be had here.


    Interesting development – “A unit of Guosen Securities, China’s eighth-largest investment bank, has defaulted on a Kong Kong-traded renminbi bond, according to a document seen by the Financial Times, marking the first debt breach by a state-owned enterprise in China’s offshore bond market in nearly two decades.”

    Just be careful reading too much into the Chinese buying spree of international assets. There is a big difference between what is agreed and getting paid. “I should’ve taken the money” – don’t lend, in this case it is better to receive than to give 🙂

  20. Ever since my own parents sold their house “off market to the chinese”, i am determined to make use of these empty homes. So instead of complaining post the addresses of these empty derelict houses. They will make a lovely little home for an Australian citizen squatter

  21. TailorTrashMEMBER

    I know that the posters on MB are a very skewed sample (some might say screwed sample ) ……but if the level of angst over housing expressed here is anyway representative of the population at large it’s amazing that our political leaders are so silent on the issue ……….I had this silly old fashioned notion that national leaders were supposed to lead on issues of national importance ………….I guess the provision and protection of Australians homes is not such an issue ……..

    • “… but if the level of angst over housing expressed here is anyway representative of the population at large…”

      I don’t think it is. Whenever I talk to friends/family I feel that I have to educate them first on what is happening, and why housing is so expensive. It’s only then that they realise how unfair the system is, but really, they’re not thinking about it all the time the way we are. The level of angst about housing seems to be quite low as this housing bubble has been going on for so long, and defied all odds that there really doesn’t seem to be much chance of it ever popping (or allowed to).

  22. Just don’t try and buy over in China. It’s banned for foreigners and their gov will either take your home or hang you. Free trade agreements? Then why is this only one way traffic? It’s not free at all. I’d just like to see Clive Palmer going and buying up every apartment in Guangdong and see how they feel about. Bugger off to the Chinese is all I can say.

  23. Hmmm I cant make up my mind, are these people pissed because the Chinese are buying something irreplaceable like Iron Ore or because they are bettering Aussies in the greatest Aussie scam of all time namely residential Real Estate.
    If you care to have lower prices than create the necessary supply. Do this and you can laugh so hard at the stupid Chinese that you might split a gut. Dont address the supply restrictions and you can cry me a river, because you’re really only crying about the loss of your scam.
    Bottom line: there’s absolutely no shortage of Land suitable for housing in Australia, the only shortage is wrt land that’s zoned for Housing, so while the former is a real problem the later is merely a politically convenient means to an end, namely perpetrating / extending the great Aussie RE scam. If Politicians created this problem than Politicians can also fix this problem.

    • People are angry because the laws are not enforced. What is happening is illegal but the Tories do not care.

      • Yea that makes perfect sense…in some unique Aussie universe where the laws of supply and demand dont apply.
        I’ll repeat myself. There absolutely no shortage of land in Australia that’s suitable for residential housing, there is however a politically supported shortage of housing and an even more acute shortage of land zoned for residential development.
        The problem is not that some rich Chinese want to buy RE in Australia rather it’s that you dont have the product (houses) available to satisfy their external demand without impacting your own need for shelter. The only law you need to understand here is the law of Supply and Demand.

      • If you want to understand my point than replace the word “Houses” with “Holdens”
        Wouldn’t we all be cheering if every person of Chinese ethnicity was desperate to own a Holden, finally a globally successful Aussie product! Would anyone care if they were recently arrived Aussies or Chinese Mainland residents.
        I can only imagine the vigor with which we’d all be extolling the virtues of the humble Holden, however in a heartbeat we’d all gladly give up our birth right to a Holden and swap it for something German.
        I know Holdens ain’t Houses but they are in a sense both products that were able to construct locally, the biggest difference being when Mainland Chinese buy Holdens they probably ship them back to China but when they buy Houses they either leave them vacant or rent them to Aussie residents. I’d politely suggest that this small difference is behind the pages of vitriol spewing from the mouths of the disaffected. Since the housing product always remains in Australia we’re inevitably going to exceed our local demand if newly constructed product is not exported.
        It’s the outcome of excess houses that really scares the pants of Aussies, logically our Ponzi RE game is up once demand is satisfied and we’re desperate as a nation to keep the Ponzi game alive. To do this we need to find new entrants and to avoid at all costs any move that would actually increase supply sufficiently to satisfy demand.

  24. If government wanted housing to be affordable, they would deregulate height limits in current industrial suburbs.

    Dubai built an artificial island, built a monorail on it and sold houses along the monorail to non-resident foreigners like David Beckham.