Warning: Chinese property buyers will default on losses
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Via the AFR:
It should not be surprising then that, when media started reporting Melbourne apartments being resold at substantial losses in early 2016, this was a cause for alarm among offshore buyers of “off the plan” Melbourne apartments.
What developers may not have appreciated when signing “off the plan” contracts with offshore buyers from jurisdictions where foreign contracts are difficult to enforce was that these buyers were potentially purchasing a de facto option on the property with their deposit.
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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.
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