Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
The China syndrome: At the frontline of Australian property revolution; Chinese demand for Australian property to continue increasing by at least 15 per cent over the next 12 months
Topic Started: 23 Sep 2014, 04:12 AM (1,214 Views)
Black Panther
Default APF Avatar


The China syndrome: At the frontline of Australian property revolution

September 21, 2014

Monika Tu sells houses with price tags in the millions, to wealthy buyers at the top end of the market who share her Chinese heritage. But, she explains, she doesn't think of herself as a real estate agent. "I see myself as a missionary," says Tu. "I come with a mission - to help the Chinese."

Five years ago, the glamourous, effervescent Tu and Lebanese husband Jad started a business tapping into what was already a burgeoning market of cashed-up Chinese looking to buy into the Australian market. With a name like Black Diamondz Property Concierge, it was never going to be just another real estate agency, hence the "concierge". And that's Diamondz with "z".

Tu has straddled two worlds, splitting her life between China and Australia. At 25, she left Shenzhen in southern China, where she'd worked as a German translator. She arrived in Melbourne in 1988 to study international trade, becoming an Australian citizen in 1992, before helping to build a multinational IT company. "I think I know everything about the Australian way of living," says Tu.

And it is here that her business model is found. As Tu explains it, her mission is to help Chinese buyers bridge the differences between the world they know and Australian culture. Based in Sydney, she will take potential clients on cultural tours that will include art galleries, and an explanation of Australian history.
Advertisement

She has been talking to a potential buyer who is in the market for a golf course, to run as a business but also as a place to entertain visiting guests from overseas. "I have something to sell," she told them, "but I really have to know if you are a qualified buyer."

The qualification isn't just about ticking the boxes on foreign investment in real estate. Rather, it is making sure the client is a right fit for what they want to buy. Intriguingly, in a business that talks in multiple millions, of buying a golf course to entertain friends, it's more than just about the money.

Monika Tu is at the frontline of a revolution in the Australian property market, that is both transforming and for many, confronting. The economic rise of China has produced a wealthy middle and upper class that is looking to invest abroad. Australia - safe, stable, good environment, good schools - is increasingly a favoured destination.

John Castran, a veteran of the Melbourne real estate scene, argues the significance to Australia's future is huge. "Originally, Australia was on the sheep's back, then wheat, then iron ore and coal," he says. "I think there's no question that the next 10, 20 or 30 years it is going to be Asian participation within our real estate market."

Castran should know. A week ago, he sold 54 hectares of farmland with potential in Werribee to a Chinese billionaire for a record $4.4 million. The settlement is a snappy 45 days.

The figures are stratospheric, but getting an exact handle on the extent of foreign investment in the Australian market is difficult because of a lack of reliable data.

Foreigners and temporary visa holders need Foreign Investment Review Board approval to buy existing properties. Latest figures show that in the nine months to March, $24.8 billion of proposed foreign investment in residential real estate had been approved, almost 44 per cent higher than during all of 2012-13. The main destinations for this money are Victoria and NSW. And the Chinese are clearly big players.

The sustained property boom has cruelled the prospects of many potential first home buyers. Invariably, attention has turned to what - or in this case, who - is to blame.

In response, the influential economics committee of the House of Representatives is inquirying into foreign investment in residential real estate, and appears likely to call for tougher penalties for foreign buyers who don't comply with the rules.

This is delicate territory where it would be easy to lay the blame on cashed-up foreigners. When she opened the inquiry, committee chairwoman Kelly O'Dwyer stressed that the aim was to distinguish between anecdote and fact. "I must also emphasise that this inquiry is not focused on investors into Australia's housing market from any particular country," she said.

"I think it's wrong to suggest that if you talk about foreign investment you are by virtue of having that discussion somehow xenophobic," O'Dwyer tells me. "But I also think you have to be quite careful in having these conversations that you don't focus on any particular country. I think that's quite counter productive."

Separating anecdote from fact has indeed been a central focus of the hearings. Brian Wilson, chairman of FIRB, went to the heart of the debate when he told the committee the discussion was beset by a lack of knowledge of the facts. First, he sought to bring some perspective. In Australia, residential real estate as an asset class was $5.4 trillion - three times the superannuation system, four times the stock exchange. There were between 500,000 and 600,000 sales and purchases a year - and his board would look at only 20,000 applications a year.

Wilson also told the committee it was fair to say almost all of the public commentary around foreigners buying residential real estate had an Asian component to it. As he pointed out, one in 10 Australians have Asian ethnicity, probably two in 10 in the central areas of cities. "... very often, we might get a call that says, 'A Chinese has bought this house and my daughter was not able to do so,' and it is investigated," he said. "Yes, they are of Chinese background, but they are a citizen. They live here."

The view, he says, was not necessarily malevolent but it was popular. "We don't often have concerns about people of Greek extraction buying properties or people of Italian extraction buying properties, because they are not so easily identifiable, I suppose, at auctions."

Certainly, much of the reporting around the issue has a race component, and it seems that xenophobia is never far from the surface. "I certainly would not like to think that way," says Melbourne entrepreneur Jieh-Yung Lo, an Australian-born Chinese, or ABC, as he calls himself, "but sometimes when you're on the ground, you can't help but notice it.

"A lot of people buying homes in Sydney and Melbourne are not Chinese nationals, they are local Chinese people living in Australia, families like my own," says Lo, whose parents migrated from Vietnam in the 1970s.

The lower Sydney Town Hall is humming on this Sunday lunchtime. Arrivals at the Sydney Property Expo are presented with a big canary yellow carry bag. When they leave, the bags will be bulging with brochures that will lead them to potential purchases.

Read more: http://www.smh.com.au/national/the-china-syndrome-at-the-frontline-of-australian-property-revolution-20140918-10ijmv.html#ixzz3E47PNoum
Profile "REPLY WITH QUOTE" Go to top
 
goldbug
Default APF Avatar


Yawn bp, Double Yawn

You're really flooding the board with crap these days bp. You must have lost you job, did you?
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
Profile "REPLY WITH QUOTE" Go to top
 
bundy
Member Avatar


I agree goldbug.

I've just added another user to my ignore list.
Edited by bundy, 23 Sep 2014, 05:29 AM.
Profile "REPLY WITH QUOTE" Go to top
 
Black Panther
Default APF Avatar


goldbug
23 Sep 2014, 05:24 AM
Yawn bp, Double Yawn

You're really flooding the board with crap these days bp. You must have lost you job, did you?
Increasing Chinese demand for RE will help the up cycle and transmutation.

This is not good news for bears at all.

BTW, why is gold still falling ? Does that mean your an eejit.


bundy
23 Sep 2014, 05:29 AM
I agree goldbug.

I've just added another user to my ignore list.
Bundy Who ?
To emphasize ...

"Demand for Australian property to continue increasing by at least 15 per cent over the next 12 months. And increasing demand, it believes, will remain a long-term trend."
Edited by Black Panther, 23 Sep 2014, 05:40 AM.
Profile "REPLY WITH QUOTE" Go to top
 
bundy
Member Avatar


Black Panther, your ramblings are becoming more and more nonsensical by the day.

Call me when the transmutation is complete.
Profile "REPLY WITH QUOTE" Go to top
 
Black Panther
Default APF Avatar


bundy
23 Sep 2014, 05:44 AM
Black Panther, your ramblings are becoming more and more nonsensical by the day.

Call me when the transmutation is complete.
:lol Ignore list my arse.

Its fascinating isnt it. You have this fixed view that you cant afford to change.

Its too late, you rolled the dice, bought gold or some other crap in line with that view.

The cognitive dissonance is starting to wear you down as RE prices keep rising, rents keep rising, and the Gov and banks arent helping you.

You can abuse other forum members who warned you of your mistake, but that isnt going to help you now.

All you can do is

Posted Image

:lol
Posted Image

Goldbug sitting tight, waiting for the right moment to trade his gold for a cheap house.

:lol
Edited by Black Panther, 23 Sep 2014, 06:07 AM.
Profile "REPLY WITH QUOTE" Go to top
 
bundy
Member Avatar


Abuse other forum members? What on earth are you talking about?

You know nothing of me and my situation, so don't speculate.
This goes for any other member who you know nothing about.
Profile "REPLY WITH QUOTE" Go to top
 
Black Panther
Default APF Avatar


bundy
23 Sep 2014, 06:08 AM
Abuse other forum members? What on earth are you talking about?

You know nothing of me and my situation, so don't speculate.
This goes for any other member who you know nothing about.
No Escape, the Transmutation is here !!!

Posted Image
Profile "REPLY WITH QUOTE" Go to top
 
bundy
Member Avatar


I have to admit, that's pretty funny.

Unfortunately, none of this has anything to do with REALITY.
Profile "REPLY WITH QUOTE" Go to top
 
Black Panther
Default APF Avatar


bundy
23 Sep 2014, 06:18 AM
I have to admit, that's pretty funny.

Unfortunately, none of this has anything to do with REALITY.
It has everything to do with the Bears REALITY on RE prices crashing.

They got it wrong and have nowhere to run to now.

Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy