Chinese Buy 1 of 8 New Homes in Australia

Chinese bought 1 of 8 new homes in Australia in the past year, causing prices to soar.

Australia Finance Minister Joe Hockey says he is not worried about rising prices. He does not think the Sydney property market bubble, "This (housing prices) mainly because of lack of supply."

Australia needs to supply 100 million homes for the 300 million Chinese who would like to emigrate. Or the Australian government should take steps to stop Chinese inflation from pouring into the housing market, but then that would be Mr. Hockey's problem.

From ifeng: 中国人一年购澳洲1/8新房 致使当地房价飙涨

"Australia's real estate and mortgage market has been in the 'unbalanced' situation." Reserve Bank of Australia (RBA) on the 24th issued a warning.

Australia's major cities over the past year prices rose. Australia's central bank said, to consider measures to prevent skyrocketing real estate investments.

Some agencies have expressed to Chinese people on behalf of the Asian buyers are the main cause of one of Australia's housing prices rose.

A report released by Credit Suisse estimates that Chinese people spend about 50 billion Australian dollars a year (about 4.5 billion U.S. dollars) to buy property in Australia, which is equivalent to the country's eighth new office houses have been bought by the Chinese people.

Currently, a committee of the Australian Senate has begun to investigate whether foreign buyers exacerbated the difficulties of their first-time home buyers.

Prices rose

Australian consulting firm RP Data released data show that in the past 12 months, Sydney house prices rose 16%, Melbourne rose 11 percent. IMF report said, according to prices, income ratio to measure the extent of Australian house prices are overvalued ranked third in the world, second only to Belgium and Canada.

Australia is currently the lowest in the history of its benchmark interest rate to 2.5%, coupled with the Australian government to invest in large residential-type housing tax incentives, and inadequate housing supply, are boosting the prices rise.

Australia's central bank said the fierce competition among lenders led to low interest rates and real estate investors received loans increase. Real estate investors are now taking up about 40 percent of the Australian home loan, while the share of a single month of July is to reach 49% record.

Australia's central bank warned that loose lending trend, if sustained, would threaten the stability of financial institutions in the country, so the measures being considered to strengthen the supervision of lending, especially for loans to investors.

According to Bloomberg, Jones Lang LaSalle Australian head of research David Rees on the 15th at a meeting organized by the agency, said: "It is reasonable to worry about whether people can buy a house, and now you want to buy a house in Sydney too difficult, Especially for first time home buyers. "

Until now, Australia's central bank also reluctant to take special measures to limit macro-prudential management of real estate investment, nor to raise interest rates - because the Australian mining industry recession, the overall economy is still sluggish.

Australia Finance Minister Joe Hockey says he is not worried about rising prices. He does not think the Sydney property market bubble, "This (housing prices) mainly because of lack of supply."

Chinese tycoons fought in Australia

There agency said Chinese investors in Australia is one of the main buyers of the country prices rose.

According to Australia, "Sydney Morning Herald" reported that in the past 12 months, Chinese investors have become Australian citizens over the U.S. real estate market, the largest investor. Australia's Foreign Investment Review Board data show that in 2013 Chinese buyers have invested 5.9 billion Australian dollars in the Australian real estate market, an increase of 42%.

Jones Lang LaSalle Australia and China Real Estate Sales Manager PaulZhang "First Financial Daily" reporters, said the Chinese people to buy a house in Australia in recent years, growth momentum is obvious. This is so keen to buy a house in Australia, mainly lies very attractive local interest on the loan and the loan into a number. In addition to low mortgage interest rates, foreign investors in Australian banks receive up to 80% of real estate loans. Coupled with the depreciation of the Australian dollar, the Chinese people feel to buy a house in Australia is a "good deal" thing.

In addition to immigration and to consider providing international education for their children, fight against real estate speculation in China also forced Chinese tycoons turning to Australia and other overseas markets.

PaulZhang told this reporter that the Australian government does have plans to increase the stamp duty on property transactions to curb rising property prices, but in the face of loan interest and attraction to the number, he does not believe that this tax adjustment will the Chinese people in Australia Buy enthusiasm had a significant effect.

Australia "Brisbane Times" said that as the United States assigned to the Chinese people's EB-5 immigrant investor visa is limited each year (in August this year because 2014 fiscal year suspended issuing quota runs out), the Chinese demand for Australian housing will rise.

China Overseas Property Search Network "outside the home network" data show that the Chinese people in overseas property searches, the United States, Australia, Canada, respectively, ranking popularity (search volume) three.

Living outside the network co-CEO Andrew Taylor said there will be more Chinese people to apply for Australia's major investment visa (SIV), therefore, the Chinese demand for Australian real estate will be more exuberant.

Australia in November 2012 began issuing SIV been 343 such visas issued has issued 87.4 percent of the Chinese people. SIV programs require applicants to invest at least $ 5 million in Australia, the project includes government bonds, by the Australian Securities and Investment Authority regulated funds. If SIV investments held for 4 years, the visa will be converted into permanent residence.

SIV is not listed real estate investment project requirements, but these get such a visa for foreigners tend to buy their own houses in Australia.

In February, Canada across the board to stop the federal Immigrant Investor Program, one of the people complaining about the foreign rich background is pushing up prices in Canada.

Housing prices should be attributed to Chinese people?

Australia's central bank deputy governor Christopher Kent said, "We have been warning people: When you decide to invest in real estate must be careful, do not think prices will keep rising, do not think interest rates will remain low during your loan has been" She also called for the introduction of more stringent measures to limit foreigners to buy a house in Australia. Kent accused the Australian Foreign Investment Review Board "sheer ineptitude."

The Australian branch of ANZ CEO Philip Crowe Nikken (PhilipChronican) and Finance Minister Hodge view is the same. He said that housing prices should not be attributed to investors in Asia and Australia, there is a problem is the supply side rather than the demand side.

Crow Nikken earlier this month at a business lunch, said: "In fact, aside regardless of individual small place, no one can force large enough to dominate the entire real estate market alone."

Crowe Nikken said part of the Chinese people in Australia buyers because their children studying in Australia. He added that such an open market in Australia can not pick and choose to select their desired investment. Moreover, with the Asian financial systems tend to open, Australian companies will benefit from foreign direct investment (FDI) from Asia's growing.

ANZ Bank estimates that FDI to China to Australia in 2030 will reach $ 200 billion. Australia is currently focused on investing in Chinese real estate and mining, but gradually spread to manufacturing, banking and service sectors.

Jones Lang LaSalle International Residential real estate person in charge of overseas Zhang on the "First Financial Daily" reporters, said the behavior of Chinese investors to buy a house in Australia is not necessarily the decisive factor in housing prices, but it will purchase the mentality of the locals impact. Local groups might just need this stimulus and have entered the real estate market. This is due to the recent influence by Chinese buyers, more people began to buy similar 多伦敦 advance. As one of China's favorite nation of immigrants, particularly evident in Australia.

The mention of the risk of overseas buyers, Zhang believes that the biggest risk is that as the number of loans and interest rate changes. On the property transaction process, but also because of improved safety laws than domestic, do not worry.

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