A Chinese buyer who only saw a Kirribilli harbourfront apartment block on Saturday morning said he got a "fair" deal, the property selling for $300,000 under reserve.
The Chatswood student bought the two apartments at 2 Waruda Street for $4.3 million on behalf of his parents, who divide their time between Australia and China. During the auction, the student tried to knock out all competition with a $500,000 bid.
"I loved the feel of it," the 22-year-old said. "I thought the price was fair, we have other properties we have bought in Sydney.
"The best part of this one is we can see the new year's fireworks from both balconies."
The 283-square-metre property – with each apartment having two double bedrooms, two car spaces and direct views of the Harbour Bridge – with waterfront parklands was one of 408 Sydney auctions listed to go under the hammer on Saturday.
With 310 of the results in by Saturday evening, the Domain Group put the clearance rate at 79.1 per cent.
The new owners were one of five registered parties in the crowd of 45. They were up against two other Chinese buyers and two locals.
Mr Zhu said that, out of the six potential buyers from China, two flew into Sydney to inspect, while the others had local family or real estate representatives inspect on their behalf.
"Some Chinese buyers who flew to Sydney to have a look were disappointed because you can't see the Opera House, only see the Harbour Bridge," he said. "If you saw both Sydney icons, they said they would be prepared to pay between $8 million to $10 million easy.
"Most Chinese buyers don't know what to do with it, they prefer something to move in straight away.
"They like the location but don't know how to rebuild, negotiate with council and how to sort out everything. It has great redevelopment potential, with some wanting to build a stunning architectural home on the site while others are keen on the rental income stream."
He said the vendors ended up paying $30,000 for the local advertising during the five-week campaign and an extra $10,000 worth of advertising in Chinese circles.
The rental return for both apartments is $2100 a week. Mr Zhu said it last traded in 2011 for $3.15 million.
This is the future: those who have PR can buy on behalf of others (who may or may not have PR). It doesn't really matter, then, what comes out of KOD's inquiry ... the foreign buying is likely to continue, unabated.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
Inflation in the Chinese domestic market is quite high, so ordinary run of the mill investments can lose value badly. It doesn't look like the Chinese central bank is going to shift to a Basel floating policy than would reduce domestic inflation. They haven't even reported their monetary statistics properly since 2010.
This is the future: those who have PR can buy on behalf of others (who may or may not have PR). It doesn't really matter, then, what comes out of KOD's inquiry ... the foreign buying is likely to continue, unabated.
Inflation in the Chinese domestic market is quite high, so ordinary run of the mill investments can lose value badly. It doesn't look like the Chinese central bank is going to shift to a Basel floating policy than would reduce domestic inflation. They haven't even reported their monetary statistics properly since 2010.
This. At every single auction I have been to this year exempt for one.
Shameless effort even for the SMH. The story of a ‘student’ opening boasting of having bought multiple existing properties on ‘behalf’ of his family was a glittering example of how the so called temporary resident exemption to the bar on foreigners buying existing properties is a complete farce.
No doubt that student’s definition of family extends to aunties, uncles and any other foreign acquaintance happy to have property in the student’s name.
Just as well the crack squads at the #FIRB will now be watching this property portfolio closely to ensure its disposal 3 months after the ‘student’ completes his PHd in medieval hairdressing.
If foreign buyers want to invest in new property – fine – wind up the supply channels and let them knock themselves out.
But they will not buy in those circumstances because they are betting on incompetence continuing. Probably a good bet judging from the performance of the ALP and LNP in recent years.
Views of Sydeys icons a must, otherwise it's a lemon.
Personally, I snub apartment living, all that living in such close proximity..I don't welcome potentials of shonky building history, noise, lack off space, even privacy. Went to a do in a South Perth apartment that had lovely views of the city foreshore on Saturday, you know I could see into people's living areas with their tvs flashing in the distance. I was glad to have my space/privacy in my home.
But some ones gotta like it, not everyone can have freestanding homes..
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
that is why you can't compete when bidding for a property. An employee worker who makes money from his work just cannot compete with the play money imported from china. it's like if you were playing monopoly against another guy who is both a player and the banker at the same time.
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