Chinese Buyers Are Snapping Up 1 in 5 New Homes in Sydney and Melbourne

Chris Pash, Business Insider, May 7, 2015

Chinese buyers bought $8.7 billion in Australian residential property in 2013-14, or about 15% of new homes, and the number is growing fast, according to Credit Suisse estimates.

Most of the purchases are concentrated in Sydney, where Chinese buyers are snapping up the equivalent of 23% of new supply, and Melbourne 20%.

Credit Suisse expects $60 billion in purchases by Chinese buyers over the next six years, more than double the $28 billion over the last six.

This surge in housing investment is driving demand higher, in a record low interest rate environment, with prices rising in Sydney by 13.9% over the last 12 months and by 5.6% in Melbourne.

New home sales are at their highest level since early 2010 and the action is in apartments. Multi-unit sales rose 11.3% in March compared to a more modest 2.6% increase in detached houses, according to the Housing Industry Association.

“We think Chinese demand is having an influence on property prices in both cities,” Credit Suisse says in its note to clients. “Even though housing supply has increased over the last year or so, Chinese demand has risen by more.”

The federal government has new fees for foreigners wanting Australian property and has started to crack down on breaches, forcing the sale of a $39 million Sydney house because the Chinese national wasn’t a resident here as required to purchase an established property.

The rules include a basic $5,000 fee for any foreign investors buying a property under $1 million, rising to $10,000 depending on the price.

And the Victorian government is talking about another 3% stamp duty when the buyer is not a resident of Australia.

“While this is less than the charges for Chinese buyers in Hong Kong or Singapore it is considerably higher than other cities where the Chinese like to buy,” Credit Suisee says. “We wouldn’t be surprised if an additional tax in Victoria drives up house prices in Sydney.”

Investors wanting to benefit the Chinese investment trend, should be focus on Australian companies with more exposure to new homes, says Credit Suisse.

Those stocks include Stockland, Mirvac, Lend Lease, Boral, Adelaide Brighton, CSR, Dulux and BlueScope Steel.

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  • james AZ

    Australia will become AUSTRALIA of CHINA huh

    • cherrie greenbaum123

      Glad I went when it was still white. Awesome people, very down-to-earth and honest. More ethnic cleansing.

    • Jason Lewis

      If America goes down I suspect that will occur.

    • IstvanIN

      Sinotralia.

  • D.B. Cooper

    Where will you run to, Aussie? The outback? Then what? Plan to end up like him?

    • George Moriarty

      Hello DB, That the first ever colour picture that I have seen of the now extinct “Tasmanian Tiger” Note to other readers, the last of these marsupials died in captivity c.1936.
      Yes, Run to the outback, you can still buy properties in outback townships for under $100,000. But they are very basic and the townships and communities have very few shops or services, lucky to have a Dr, education is at primary school level only and there are no jobs and not much else, just the dreary outback landscape and awful hot summers.

      • D.B. Cooper

        Nowadays, the Thylacine (Tasmanian Tiger) is a cryptoid like Bigfoot, and the Loch Ness Monster. There are sightings, but nothing confirmed. You would think the Chinese had plenty of room in their own bleak places, like the Himalayas.

        • LexiconD1

          Have you seen the pictures of the toxic waste strewn throughout China? Google them. They are disgusting and disturbing. China is nothing more than a toxic dump. They’ll bring it to Australia, if the Australian government isn’t careful.

          • George Moriarty

            It would not surprise me one bit either about the toxic waste or the birth vacations.
            I know that from time to time there have been cases where processed food imported from China has heavy metal contamination. In one example they showed a picture a cannery adjacent to a toxic waste dump.

  • B.A_2014

    If there was a people I expected to resist, it was the Aussies. I guess I was wrong. They are as spineless as the rest of us.

    • D.B. Cooper

      You should’ve known that from Cronulla.

      • George Moriarty

        But the do-gooders are never going to let us forget Cronulla, they refer to it as Australia’s moment of shame. Note the Muslims have returned and their women still go into the surf wearing those medieval robes.

    • cherrie greenbaum123

      It’s not the Aussies, my friend. It’s those who rule the Aussies. Those shoes you see underneath the curtain have a man attached to them.

  • Bossman

    The Australians fought very hard to resist Japanese invasion during WWII. Now they are letting the Chinese take over their country peacefully. That is the way the Chinese want it to happen.

    • Hilis Hatki

      “We come in peace”
      Oldest military strategy in the book.

      • George Moriarty

        More like “we come with our cheque books wide open.”
        But the result will me much the same as a military takeover and when they own most of Oz we will be regarded as their traditional “Foreign Devils”

    • George Moriarty

      Yes, as recently as 1970 to justify our very unpopular involvement in the Vietnam conflict we were reminded of the dangers of the “Yellow peril” Oh how times have changed, but sadly human and in particular government stupidity never changes.

    • Jason Lewis

      Didnt we do the same with Mexico?

  • George Moriarty

    I can assure readers of Amren that the situation here is very serious. partly as a result of the influx of Chinese buyers property prices have risen to absolutely obscene levels. But note, some people including the NSW state government which collects massive property transfer taxes are doing very well out of this thank you very much. Other long term residents know they are sitting on a pot of gold if they own even a modest property.
    But, we choose to live in Sydney, it is basically a great place to live if you can afford to. Sadly our children can not even think of affording to live here. Rents are in order of 70% or more of the basic wage. A loan, even at say4% to buy a very basic but million dollar plus cottage is just unaffordable.
    AND, I just don’t like seeing the present Chinese and Indian takeover of our city, it is almost obnoxious. (And, sorry Mr Engleman, they are not nice newcomers, anything but)

    • It makes affordable family formation for native born whites impossible.

      • George Moriarty

        You can move to a more affordable but less desirable area, which often involves a daily 2 – 3 hour commute etc., but why should we have to, it’s our country. (It was)

    • cherrie greenbaum123

      I’m very sorry this is happening to you. It’s coming to us all. Nationalism, as many of us know it, is dead in the Western European World, as well as America and Australia. We’ve been sold out. Lock-stock-barrel. Soon you’ll know if you live in a rich neighborhood (Sydney/Melbourne) = Asians/Indians or a poor one (Baltimore/Detroit) Africans.

      • LHathaway

        Cheer up, your charming posts are helping bring Nationalism back.

        *sarcasm*

    • phillyguy

      Your right, they are a way bigger threat to us than the blacks and browns.

    • Light from the East

      Chinese and Indian issues in Western countries are not like other blacks, Muslims, or illegal aliens problems. They are more complex, usually involving educational and economic problems. So in order to prevent this, you need to know the way of their thinking. First, Asians (especially East Asians) love to buy real estate wherever they live. It is even true in their own countries. It is related to a deep-rooted concept from the ancient era – “Along with land comes about wealth.” A normal Chinese will feel “insecure” when they don’t own a real estate.

      By knowing this, some solutions are highly effective.
      First, buying real estates is considered “investment” in the eyes of Asians, thus, all you have to do is to increase the cost of transaction and the cost of holding them. For instance, raise tax for foreign buyers and use these taxes to help improve white people’s birthrate, living condition.
      Second, you can limit foreign investment in your country to the extent you want and you can regulate them. If requirements are not met, you can expel them by regulations and laws, in the name of “business transparency”.
      Third, some transactions are done by illegal brokers run by Asian living in Western countries. So you can make a law that all of the benefits they got must be given back to the public and if they don’t follow them, deport them back to their countries. Giving their benefits to their governments of homelands will surely guarantee the process since Asian nations’ governments are unrelenting and strict about dual citizenship and overseas properties.

      There are just a few ways I came up with to deal with such issues. Too few whites know how to solve them from the root. Whites need a man foreseeing all of these and knowing their mindsets pretty well. If whites don’t know how to deal with them intellectually and complain it all the day, such things will not stop.

      • John Smith

        Many whites’ desire not to discriminate or complain about minority behaviors that hurt them will preclude this until too late.

        • Light from the East

          Discriminate or complain does not matter. What really matters is the motivation to carry out the plan. The solid measures should be done no matter what kinds of desire you have.

      • George Moriarty

        The new government restrictions on Chinese investment here are too little to late and as you say, any smart property broker will be able to bypass the rules.

  • dd121

    And just when I thought they were about to turn it into a white homeland.

  • tickyul

    Home prices in many parts of the USA, and I suspect many parts of the World, are WAY past the peak of the last bubble. HUM, stock market basically going up and up and up for over 5 years, ditto for housing prices in MANY areas, this thing is going to blow-up yet again!

    • listenupbub

      I remember reading that such behavior from Chinese investors had something to do with the crash of 2007.

      • tickyul

        Well, we have the same type of
        bubble-frenzy going on right now. It is a complex variety of factors…….a lot of it is government manipulation of the housing and stock markets via financial policies. The wailing and gnashing of teeth when this thing explodes yet again.

      • John Smith

        There are tons of unoccupied yet purchased apartments in China in their “ghost cities,” bought on credit.

  • phillyguy

    They are doing it in every city and town in this country and turning them into section 8 housing .

  • LeonNJ

    Aren’t the Chinese moving into Russian Far East too? I saw on TV some time ago about the local Russians actually like them because they said they “work very hard, aren’t late, and don’t smoke pot”. I kid you not.

  • George Moriarty

    This afternoon I had to visit one of our more “diverse” (read Asian) suburbs re a medical related matter. While sitting down waiting and observing the passing parade, this elderly woman (80 +) alongside me wanted to make polite conversation. I asked if she lived locally, yes, she had done so for sixty years or so…
    And then she let me have it about the “Asian invasion” of her suburb! Can’t talk to anyone here any longer, they don’t speak English, all Chinese or Vietnamese. I had no intention of getting involved in a conversation about race but I certainly let this elderly woman know I agreed with her.
    Moral of this anecdote; Asian immigration and the shortcomings of multiculturalism and diversity are certainly not going unnoticed.

  • Eagle1212

    Then Australia’s job market will be filled by cheap Chinese labor thus threatening their economy, the same thing is still happening here in the US and unemployment is still at an all time high.