Boom fires up again?

[multi]

http://www.finance.news.com.au/common/story_page/0,4057,6462572%255E462,00.html

[Lotana]

Wouldn't high AUD put some pressure on overseas/expat buyers who are one of the big driving forces (alone with first home buyers and local investors) of Australian property market? I was about to buy an IP in Sydney a few years ago at the advertised price when the HK owner withdrew from the market claiming low AUD as the reason. With high AUD overseas people will start selling and stop buying which shall have a downwards effect on property prices (in particular on properties approved by FICB).

Cheers,
Lotana

[Aceyducey]

I've never heard that o/s buyers were the driving force in the property market - what are the stats on this?

Not that I mind downward pressure on property prices in the short term ;)

Cheers,

Aceyducey

[Lotana]

Aceyducey,

Sorry, no stats, just observations. Japanese buying in Gold Coast in the 80s. Russians and Japanese buying there again in 2000s. HK nationals buying units in UNI suburbs (I am more familiar with UNSW area in Sydney covering Randwick and Kensington. Kensington has a very large estate with units and townhouses where prices are 15-20% higher than in the rest of the suburb because it was designed with HK owners in mind. Floor plans, even street names are with Asian flavour: i.e. "Black Lion Place".) This group of people definitely affects prices in these suburbs.

I would also like to see the stats to confirm my observations. And wouldn't mind the prices to soften a bit to make my next buy more affordable.

Regards,
Lotana

[Les]

Good points, people,

And re Acey's comment aboutI've never heard that o/s buyers were the driving force in the property market - have a think about this:-

I have heard (haven't checked, but you can) that o'seas buyers make up nearly 50% of sales of units in Aust capital cities. Fair enough - I haven't checked, simply because I don't buy "units in Aust capital cities".

OK, now, IF those same o'seas buyers had reason to sell off some of these, what happens - well, first off, these are now "second hand units" - and, as such, are NOT eligible purchases for other overseas buyers !!!!!!!!!!!!!! (Check the firb website).

So, the numbers of buyers has just reduced by half !!! Supply and demand curve? Which way is it now headed?


In effect, then, Acey, I think o'seas buyers can have a marked effect on the property market (at least in units in capital cities...)

Camments?

Regards,

[Aceyducey]

But who in their right mind buys units in capital cities :)

Low land content, overbuilt & hard to value-add....

'O give me a home where the buffalos roam
And the land content is high'

Cheers,

Aceyducey

[Les]

G'day Acey,

Should I change it to o/s buyers were the driving force in some sections of the property market

:D

[Glenn]

mmmm....higher dollar may = cheaper imports!!!

Lets all buy shares in Australia's best finance company...Harvey Norman!!

Glenn

ps...please disregard this as financial advice...I am the world's worst sharemarket investor :D

[XBenX]

That damn Gerry Harvey - you know he is soley responsible for the Aust tourism downturn..... :P