Crackdowns force Chinese buyers to sell properties

Above is an interesting report aired on 9News Sydney on Saturday night explaining how many Chinese buyers of off-the-plan homes are being forced to sell or forgo their deposits following successful crackdowns by the banks and the Chinese Government.

Below are the key quotes from the video.

Reporter: “Chinese investors have been hit by a double whammy. Local banks will no longer lend to investors using a foreign income. And the Chinese Government has clamped down on money leaving the country. The losses for these investors could be significant… many [investors] are now saying they are willing to lose the 10% they put down”….

“Michael Ju is trying to now sell apartments for those that didn’t think their loans would fall through on settlement”.

Michael Ju [real estate agent]: “They are really upset because they bought it 2 years, 3 years, off plan. That time, they do the variation. They do the loan pre-approved”…

Peter Kelaher [PK Property]: “I think some of the banks will actually start foreclosing on the developers. The good news? Well, there are going to be some fire sales and I think that that will help first home buyers”.