Chinese money drives up house prices
Apr 5th 2010, 12:18 pm
#61
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Re: Chinese money drives up house prices
I have no idea to what extent Chinese buying is causing the Australian property boom/bubble (you decide), but a growing number of economists are expecting a crash of the Chinese economy.
e.g. http://www.bloomberg.com/apps/news?p...d=aNZe4JWeV1aw
e.g. http://www.bloomberg.com/apps/news?p...d=aNZe4JWeV1aw
Apr 5th 2010, 12:34 pm
#62
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Re: Chinese money drives up house prices
I have no idea to what extent Chinese buying is causing the Australian property boom/bubble (you decide), but a growing number of economists are expecting a crash of the Chinese economy.
e.g. http://www.bloomberg.com/apps/news?p...d=aNZe4JWeV1aw
e.g. http://www.bloomberg.com/apps/news?p...d=aNZe4JWeV1aw
Apr 5th 2010, 2:09 pm
#63
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Re: Chinese money drives up house prices
How the hell , in a population of 22M, which has had on record a horrendous housing shortage for decades suddenly have house price inflation because of a few chinese people with money. What a load of tripe.
The very fact that this country has such a huge rental market, and taxation policies to support that, should be enough for the average dolt to realise there is a shortage of stock. A shortage recognised at government level as such a problem that they put taxation policies in place to alleviate it to encourage private sector wealth to increase the housing stock.
Sounds like more poorly researched tripe, typical aussie media. Here's a tip - read the Guardian, Telegraph and Times websites before flipping over to news.com.au for a bit of light entertainment.
The very fact that this country has such a huge rental market, and taxation policies to support that, should be enough for the average dolt to realise there is a shortage of stock. A shortage recognised at government level as such a problem that they put taxation policies in place to alleviate it to encourage private sector wealth to increase the housing stock.
Sounds like more poorly researched tripe, typical aussie media. Here's a tip - read the Guardian, Telegraph and Times websites before flipping over to news.com.au for a bit of light entertainment.
Also, I thought Australia has roughly the same home ownership rate as the UK....wouldn't that make the percentage who rent the same as in places like the UK...either from private landlords or the govt?
Apr 6th 2010, 12:42 am
#64
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Re: Chinese money drives up house prices
I agree - and what is the definition of a "housing shortage", anyway? And where are we talking about - 1 bed units in Broken Hill, 3 bed houses in Perth, penthouses in Toorak, 2 acre Federation houses in Geelong?
Apr 6th 2010, 2:18 am
#65
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Re: Chinese money drives up house prices
The definition of housing shortage is quite simple - it's when people are paying way over what they would in a rational market, and way over what they can really afford. That's what is happening now.
Apr 6th 2010, 2:22 am
#66
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Re: Chinese money drives up house prices
In aus about 1/3rd of homes are rentals.
Apr 6th 2010, 2:29 am
#67
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Re: Chinese money drives up house prices
RBA governor said in march - there is a housing shortage, the actual figure is put at around 110,000 homes forecast to reach 400,000 by 2020 based on the fact that we have above average population growth and below average new home approvals.
In aus about 1/3rd of homes are rentals.
In aus about 1/3rd of homes are rentals.
Australia is up there with the highest level of home ownership and is similar to the UK for example: http://en.wikipedia.org/wiki/Owner-occupier
Apr 6th 2010, 3:15 am
#68
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Re: Chinese money drives up house prices
Theres a housing shortage in the large cities, not in most regional areas. In the large cities you have limited space where large numbers of people want to live, while in regional areas you have plenty of space but few people want to live there.
Last edited by mohogony; Apr 6th 2010 at 3:22 am.
Apr 6th 2010, 3:16 am
#69
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Re: Chinese money drives up house prices
I could see the argument being made for a housing shortage now, just not for decades.
Australia is up there with the highest level of home ownership and is similar to the UK for example: http://en.wikipedia.org/wiki/Owner-occupier
Australia is up there with the highest level of home ownership and is similar to the UK for example: http://en.wikipedia.org/wiki/Owner-occupier
Take this example, Californian 2006, it could of been straight out of an Aussie newspaper today and we all know what happened to Californian Real Estate, down 60%?
The California Building Industry Association (CBIA) continues to express alarm over what it calls an ongoing housing crisis in Southern California.
Alan Nevin, the association’s chief economist, projected in a 2006 CBIA Housing Forecast that only 185,000 to 205,000 building permits will be granted this year, far short of the 240,000 new homes needed each year.
Southern California has been experiencing a massive population boom in recent years and it’s believed that 6 million new residents will be living in the region by 2020. The population increase, coupled with the housing shortage, has the CBIA worried that it will be increasingly difficult for first-time homebuyers to find a moderately priced unit.
Alan Nevin, the association’s chief economist, projected in a 2006 CBIA Housing Forecast that only 185,000 to 205,000 building permits will be granted this year, far short of the 240,000 new homes needed each year.
Southern California has been experiencing a massive population boom in recent years and it’s believed that 6 million new residents will be living in the region by 2020. The population increase, coupled with the housing shortage, has the CBIA worried that it will be increasingly difficult for first-time homebuyers to find a moderately priced unit.
Similar news items can be found for Ireland, all the same content, not enough supply, foriegn investors bidding up prices, ad nauseum.
Apr 6th 2010, 3:23 am
#71
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Re: Chinese money drives up house prices
So what if there are a lot of rentals?
Apr 6th 2010, 3:34 am
#72
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Re: Chinese money drives up house prices
Apr 6th 2010, 3:51 am
#73
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Re: Chinese money drives up house prices
Apr 6th 2010, 4:08 am
#75
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Re: Chinese money drives up house prices
You need about $400k to get near waterfront property near me.
(2003 FX rate = £142k or 2010 FX rate = £240k)
