The Chinese who bought a house in Australia suffered the worst losses

Source: Tencent Finance

Recently, the World Wide Web published a report in Hong Kong’s South China Morning Post. According to the report, many states in Australia are currently “laying the red carpet” to attract foreign investors.

Once upon a time, the ability of the Chinese to buy houses in overseas countries such as Australia, Europe, the United States, and Japan was a status symbol. However, due to restrictions on distance, policies, culture, time lag, etc., many people in China have to hand over the purchase of houses to intermediaries.

Following my personal experience of buying a house overseas: 160,000 cannot afford Hermes, but I bought a house in Japan, this issue focuses on three overseas real estate agencies: some of them have settled in Australia for more than 20 years and experienced the Australian real estate market From the peak to the trough, some people focused on real estate in Southeast Asian countries. Not only did they act as an intermediary, but they also bought a house in the sea, and summed up a set of theories and experiences… The following is their real experience:

Speaker: Richard

Profile: Began real estate agency in Australia in 2010

Chinese people who bought a house in Australia after 2015 are basically at a loss

Chinese people who come to Australia to invest in real estate are mainly divided into three stages. People who invested in Australia before 2010 are generally directly related to Australia. For example, their children are studying in Australia. They have some investment psychology, but they also have rigid needs.

From 2010 to 2015, with the popularization of the Internet, the domestic middle class set their sights on the world, and Australia was also noticed by them. At that time, housing prices in Australia were relatively cheap, and some people came to Australia to invest with the help of professionals.

From 2015 to 2018, there was a trend among domestic buyers who came to Australia to buy houses. During this period, the Australian real estate market was very active, and many properties in Sydney almost doubled.Spark Global Limited

Chinese investors are bullish but not bearish, so many investors rushed in. When they bought a house, they might have never been to Australia or had never known professional knowledge in this area, and completely relied on an intermediary to operate it.

According to the statistics of the Australian National Bureau of Statistics, during this period of time, the number of Chinese investors ranked first, surpassing the United States and the United Kingdom, and the annual transaction volume is generally between 15,000 and 20,000.

But in 2018, the Australian real estate market began to adjust, and house prices fell by 5% to 10%.

When it comes to the scam of buying a house in Australia, I think it can be understood from two directions. One is that someone is really cheating you. From location to room type, all the previous publicity is fake. This is cheating. This phenomenon cannot be said to be absent, but it is relatively rare.

Another scam, more strictly speaking, should be called the concept of stealing. For example, in Beijing now, an intermediary recommends you a house on the second ring road in Beijing with two bedrooms and two halls and then tells you that this house can be bought at one-third of the average price in Beijing. Would you be tempted?

I believe many people will be tempted, but this is actually a secret exchange of concepts. Because in Australia, especially Sydney and Melbourne, the living habits of the local mainstream population are very different from those in China. Few people live in the city center, or what we call the “Second Ring Road”. Generally speaking, everyone prefers to live within a distance of 30 to 60 minutes by car from the city center.

For this kind of house near the city center, the value-added return depends on who will take over the house in the future. Unfortunately, it is difficult for local people to come and take over this kind of house. If you buy this house in the suburbs we understand in our country, it is still a townhouse or a single-family villa, but this house will have a big increase in the future because of more rigid demand.

There are also houses near the University City. Australian universities are located near the city center. This is back to what I just said. The University City is in the city center. It may only be liked by international students, but locals don’t like it.

This is what I call the concept of stealth exchange. The concept of “city center” is used to promote domestic investors. This is the case in Sydney and the same in Melbourne, especially in other small and medium cities such as Brisbane and the Gold Coast.

One thought on “The Chinese who bought a house in Australia suffered the worst losses

  • Australia has blamed the cold winter on foreign speculators leaving the market. Data show that in Australia to buy a house of foreigners, three quarters are Chinese, speculation and high prices of buyers have a lot of losses.

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