A large influx of Chinese capital into rising housing prices, the Australian Federal Parliament initiates an investigation
New houses are bought by foreigners in the first quarter, the Australian property market continues to rise
The enthusiasm of Chinese developers to buy land has increased by 24%.
Our reporter Yu Meng reports from Beijing and Sydney
The Chinese property market is overcast, but Australia is in the ascendant.
The National Australia Bank (NAB) real estate prosperity index quarterly report shows that in the first quarter of 2014, the housing market in each state in Australia continued to be prosperous. Except for Victoria, housing prices in other states are expected to continue to rise. New South Wales, with Sydney as the capital, is expected to grow house prices by 3.3%, ranking alongside Queensland as the region with the fastest house price growth in each state. In terms of return on capital, Queensland leads with 4.4%.
According to the NAB report, the purchase of foreigners has brought a lot of demand to the Australian new housing market. Currently, one out of every seven newly built properties is sold to foreigners. According to Australian law, non-Australian residents can only buy new houses, not second-hand houses. In Queensland, the demand of foreign buyers accounted for 7% of total demand. A report by the real estate professional services and investment management company Jones Lang LaSalle shows that foreign buyers tend to prefer the eastern coastal states. Jones Lang LaSalle believes that from the perspective of returns, the Australian real estate market is still on the rise.
The influx of foreign capital and the housing price bubble
The influx of foreign capital to buy houses has aroused the vigilance of local Australian media. Many public opinions in Australia believe that the influx of foreign capital into the Australian property market has caused property prices to rise.
In March 2014, the Australian Federal Parliament launched the Housing Price Survey Committee to investigate the status of foreign investment in the Australian real estate sector to understand the impact of the influx of foreign capital. The member in charge is Kelly O'Dwyer, a member of the Liberal Party of Congress.
Xia Shaisi, director of the China region of Jones Lang LaSalle International Capital Group, said that whether the influx of foreign capital into the Australian property market pushes up housing prices should be rationalized. "First, foreigners in Australia can only buy new houses, not second-hand houses, so the two markets are still independent of each other; second, the average price of foreigners buying a house is more than A$150 million, which belongs to the high-end residential market. Are competing."
The Australian Federal Government implements an incentive policy for first home buyers, but only if the price of the first home is below A$65 can the government receive a subsidy of 1.5 yuan. In other words, the housing that meets the rigid demand should be less than A$65.
"Statistical results show that'just need' accounts for 20% of the total number of mortgage applications for house purchases, and the rest are loans for purchases of non-first homes. That is to say, investment demand and the demand for improving housing are the factors that contribute to the increase in housing prices." Xia Shailai said.
On the other hand, Australian public opinion has also been arguing whether or not Australian house prices have formed a bubble and whether house prices will fall.
The analysis believes that the continued rise in housing prices in Australia is related to the demand brought about by population growth on the one hand, but the Reserve Bank of Australia (RBA) has successively cut interest rates to form the lowest interest rate in the past 30 years and is also an important incentive for the booming Australian property market. At present, the loan interest rate of many non-bank institutions can achieve an annual interest rate of less than 5%, and can provide 90% home purchase loans. As the real estate market most sensitive to interest rates, the rise in house prices is reasonable.
But interest rate hike expectations are getting stronger. The Governor of the Reserve Bank of Australia (Glenn Stevens) publicly stated at a business luncheon hosted by the American Chamber of Commerce on April 4 that he was worried about the current rapidly soaring house prices, and warned investors: if house prices rise, so too. drop.
Xia Sisi pointed out that although Australian house prices have risen rapidly in the past two years, from mid-2012 to January 2014, the increase reached 1%, but if compared with the last high point at the end of 16, house prices have only increased by 2010%. Looking at the level of the past five years, housing prices have been rising steadily, not sharply.
"If the bank raises the loan interest rate, it may also relax the loan requirements at the same time." Xia Shailai added that the price expectations of buyers in Australia have risen, and the confidence index of the housing market is still optimistic.
China's real estate investment surged by 42%
澳大利亚外国投资委员会(FIRB)今年2月公布的数据显示， 2012年7月1日至2013年6月30日，FIRB批准的外国房地产投资为519亿美元。来自中国的房地产投资为59.32亿澳元，比上一财年增加 42%。来自中国的总投资为158亿澳元。也就是说，中国对澳房地产投资占中国总投资的37.5%，中国向澳房地产投资占外资对澳房地产投资的 11.4%。
Many Chinese companies have stated that they will continue to invest in the Australian real estate market.
In March 2013, Greenland Group announced that it would invest in the construction of Sydney’s tallest apartment building in the future—the "Sydney Greenland Center" over 3 meters and supporting commercial and high-star hotels in the center of Sydney. The total investment of the project is about 240 million Australian dollars. This is the first time that the "Greenland Center" brand series has been overseas.
In addition to the "Greenland Center" in Sydney's CBD, Greenland Group also invested in plots near the Melbourne Racecourse and plans to build 1000-1200 houses. In 2013, Greenland Group invested A$10 billion in Australia. In early 2014, according to Australian Chinese media reports, Greenland acquired two more plots in Sydney.
Green land is not the case. In February 2014, Country Garden Australia Co., Ltd. spent A$2 million to purchase a development site in northwestern Sydney. This is Country Garden's first foray into the Australian market.
In the hotel real estate sector, at the beginning of 2014, China Fuhua International Group bought Melbourne's landmark Park Hyatt for 1.3 million Australian dollars and is considering continuing to expand into other properties.
In addition to Sydney, Chinese companies are also very active in investing in Melbourne, the capital of Victoria. In the second half of 2013, Hubei Fuxing Technology Company issued an announcement stating that its subsidiary Financial Fook (Sydney) Company (Financial Fook) entered the Melbourne market and bought a development site in South Bank for A$1800 million.
According to the statistics of Jones Lang LaSalle, 65% of foreign real estate investment is concentrated in New South Wales and Victoria. The most popular cities for foreign real estate investment are Sydney and Melbourne. The reason is that the urban development is better and there are more job opportunities nearby. There are schools and universities, and Asia has a large population and will continue to increase.