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Sydney's house price will double in 5 years
Topic Started: 10 Aug 2014, 02:55 PM (2,706 Views)
mayw
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I invested multiple properties in China before I immigrated to Australia two years ago. It's stunning that the government is encouraging property speculation in such a astonishing level. 20% deposit, refinance, negative gears, SMSF, FHBG, even non-resident buyers can get some allowance from the government.

Currently apartments/units price in Sydney are almost the same as they are in Shanghai, China.But the house price here is much lower than they are in Shanghai. In Shanghai you have to shell out $7Million for a detached house(750sqm land size) 10km away from CBD, but in Sydney you only need to pay $2M.

Currently in Shanghai every household can only buy 2 properties at most by law. Many people are seeking to buy investment properties overseas. Sydney is a hot destination for them.

Shanghai is among many cities in China with such curbs on local property investment.

Considering the huge demands from China, the price of properties in Sydney will double in 5 years.
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peter fraser
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mayw
10 Aug 2014, 02:55 PM
I invested multiple properties in China before I immigrated to Australia two years ago. It's stunning that the government is encouraging property speculation in such a astonishing level. 20% deposit, refinance, negative gears, SMSF, FHBG, even non-resident buyers can get some allowance from the government.

Currently apartments/units price in Sydney are almost the same as they are in Shanghai, China.But the house price here is much lower than they are in Shanghai. In Shanghai you have to shell out $7Million for a detached house(750sqm land size) 10km away from CBD, but in Sydney you only need to pay $2M.

Currently in Shanghai every household can only buy 2 properties at most by law. Many people are seeking to buy investment properties overseas. Sydney is a hot destination for them.

Shanghai is among many cities in China with such curbs on local property investment.

Considering the huge demands from China, the price of properties in Sydney will double in 5 years.
Do you have a link to any charts confirming detached homes in Shanghai have a median price of $7M USD?
Any expressed market opinion is my own and is not to be taken as financial advice
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Sydneyite
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If this did occur, and it was driven by wealthy offshore Chinese buyers, then I don't think prices at that level would be sustainable - it would be too much too fast, and would have to subsequently correct fairly savagely I would think.

Having said that, as a Sydney property owner with a house on about 700m2 of land within 10km's of the CBD (and north side at that), if prices doubled, I would probably sell and move elsewhere (maybe north coast somewhere, or Brisbane/SEQ somewhere), as with that big a wind-fall gain I could bring my retirement plans forward by doing this. Only issue with this would be a bit of disruption for my kids (ie having to move to a new area, schools etc), which my current long term plans try to avoid.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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miw
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peter fraser
10 Aug 2014, 07:25 PM
Do you have a link to any charts confirming detached homes in Shanghai have a median price of $7M USD?
I'd say detached homes within 10km of the CBD in Shanghai would be like hen's teeth, except perhaps for old courtyard houses?
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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busted
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So why didn't all Chinese investors come over buying into Sydney? Hongkong has a higher property price to income ratio since 90s, did they come over to buy Sydney property and made its price doubled?

The Chinese/Shanghainese fairy tale doesn't work. Chinese property investor would buy into western part of China to boost local real estate market, easier than going down under, at least they speak the same language.
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Sydneyite
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busted
10 Aug 2014, 07:58 PM
Hongkong has a higher property price to income ratio since 90s, did they come over to buy Sydney property and made its price doubled?
They did - HK buyers were one of the main drivers of the more than doubling of Sydney property in the late 80s.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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van
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Quote:
 
Chinese property investor would buy into western part of China to boost local real estate market, easier than going down under, at least they speak the same language.


Obviously you have not been to Sydney, they would speak the same language. Wherever the Chinese are, more will come there and drive the house prices up. If you look at the top performing Sydney suburbs, they are majority Chinese.......Eastwood, Epping, Hurstville all up over 30% YoY.

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Catweasel
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Catweasel say wow.

Much the excitement of a riches coming from a China,

to buy its white picket golden eggs.

And it the understandable,

of a wide eyes and a dreams,

and who would the think,

in its the wildest dreams,

it live in a most valuable,

on a planet.

It like a Hanoi in the Vietnam,

where a land the prices a challenge those of a Tokyo.

It enough to make it want to try on pair of white shoes.

http://english.thesaigontimes.vn/Home/business/property/33893/Ministry-seeks-to-suspend-licensing-new-commercial-housing-projects.html
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Guest
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Spoke to a Gen Y friend this weekend and in the two weeks since last speaking to her, she bought an investment property.

I asked why the rush. She said there was no rush, but there was no point waiting for the market to drop – and even if it did it “would only be like 5%. Property never goes down”.

So I joked and asked when the party at her new house would be. She laughed and said “No way. When I get the keys I’m renting it out the next day.”

Apparently she’d kept an eye on the area and noticed the council rezoning for high density.

Her ambition is for the place to be rezoned so she can “make $200,000 overnight.”

And you know what? She’ll probably be right.

Guys and girls, this is Australia. We do not produce. We do not innovate. We buy and sell houses. We are impulses that seek economic rent.

I used to believe Gen Y had woken up. No longer will I be so naive.
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Admin
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Quote:
 
Paying 18% over auction estimates: Sydney's pre-spring price spurt

Jonathan Chancellor | 5 August 2014

The intensity of the Sydney auction property market appears to be strong in early August auctions.

Last week Property Observer published a survey of 30 recent auctions suggesting there was a 12% gap between price estimate and knock down sale price.

We'll be checking the auction temperature on a weekly basis as we head into spring.

The randomly selected 10 results showed a range in above estimate sale prices of between 5% and 37%.

There was an 18% above estimate sale price.

The highest result was actually not disclosed, but we can advise it was $1.1 million, some $300,000 above the $800,000 pre-auction price estimate.

Read more: http://www.propertyobserver.com.au/finding/residential-investment/sales-and-auctions/34155-paying-18-over-auction-estimates-sydney-s-pre-spring-price-spurt.html
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