Are Chinese boom suburbs the mining boom suburbs of tomorrow

There seems to be a lot of focus on suburbs were foreigners, especially Chinese like to buy investment property as these typically experience fantastic capital gain due to the gigantic influx of cashed up investors.

However do these suburbs have the potential to turn into the mining towns of tomorrow that may be severely impacted when the foreign capital dries up.

Thoughts anyone??
 
There seems to be a lot of focus on suburbs were foreigners, especially Chinese like to buy investment property as these typically experience fantastic capital gain due to the gigantic influx of cashed up investors.

However do these suburbs have the potential to turn into the mining towns of tomorrow that may be severely impacted when the foreign capital dries up.

Thoughts anyone??

Depends abit on where you're talking about

Don't think so , if you're talking abut places like Epping

Much of the demand is driven by locals , who are buying in generally good areas that are well located near good schools .

Don't see a large number of the people buying these areas becoming unemployed.

If on the other hand you're talking about somewhere like parramatta where a lot of OTP's are being sold to OS investors , there may be some places selling for well below what some people are paying now or in the next year or so , but even there I don't expect to see the sort of mayhem you see in a typical mining town or somewhere like Gladstone .

Cliff
 
There is a lot of specific targeting of sales of new properties towards the Chinese market ( whether that be foreign or local chinese buyers ). It's probably more the case with OTP apartments than H&L packages. You see it in ads all the time via photos that have chinese characters on them. I've seen a few advertised in my area.

I saw one RE company with the name "8888 Real Estate" or something like that. That's a branding geared towards the chinese market.

If cash is pulled out by the mainland chinese, I think there would be an affect on the market but nowhere near to the extent that mining boom towns have crashed.
 
I go to Eastwood regularly and you can see lots of Asian salesman standing next to groceries shops selling OTPs around Australia (mainly apartments). I don't think that is gonna change as it is a Chinese culture to buy houses for wealth and they are all living here.

Also Chinese only likes buying capital cities with good schools and also train stations, so I don't see it crash like mining towns as those criterias also suits most non-Chinese buyers.
 
Probably

People dont realise this is just like Japanese and Gold Coast. Nothing lasts forever. Even the British and Roman Empires didn't.
 
Hard to say. I keep a close eye on schooling enrollments and waiting lists in a couple of Chinese suburbs in Sydney. The prestigious and high-performing high schools cannot keep up with Chinese demand. Seriously, a friend of mine is a teacher at a school near Epping, NSW. She said that waiting lists for each year (I.e. year 7, year 8 etc.) Are so ludicrously long that they are in the hundreds of applicants, per year. Just because it is a public school and one's child lives in the catchment, this does not mean the school has to accept the child 'just coz'.

If the classrooms are so grossly overcrowded (which they are), the school will place catchment-local wannabe students on to an orderly list. Most people on that list have no chance in hell of getting in.

Where am I going with this? Well, I believe that the Chinese buyers (local) will realise it is impossible to get in, and start looking at 'still great, but Tier #2' high school suburbs and start bidding these up. There is just not enough supply of school classroom seats to keep up with demand.
 
I heard someone say that they have a granny flat in the area of the school catchment and they have a tenant that only uses it for the address just so they could be in the school catchment! That was $300 a week a few years ago. I think the family doesnt live there.
 
Good schools

True about renting or buying a small apartment in the catchment of a good school just to get children in but not a guarantee. Schools like Cheltenham girls is very popular.
 
True about renting or buying a small apartment in the catchment of a good school just to get children in but not a guarantee. Schools like Cheltenham girls is very popular.

Cheltenham GHS has reduced their catchment area and are very meticulous about reviewing the renting history of any new student.

It will be the same with all quality schools but more so public ones as the current NSW Liberal Government are hell bent on significant population increase without additional schools or extensions of existing.
 
Had an interesting chat to a Sunnybank area agent (like the Glen Waverly of QLD) on Friday and I asked if all these APRA changes were affecting demand / behavior. He said it hasn't and was unlikely to since most of the Asian buyers are either using cash or only having to take out very small loans. It's a totally different market and you need to use different strategies to navigate / compete.
 
Had an interesting chat to a Sunnybank area agent (like the Glen Waverly of QLD) on Friday and I asked if all these APRA changes were affecting demand / behavior. He said it hasn't and was unlikely to since most of the Asian buyers are either using cash or only having to take out very small loans. It's a totally different market and you need to use different strategies to navigate / compete.

Just because they are using cash doesn't mean they can buy, they will need to register their details with the REA and gain approvals.
 
there are two types of properties:

Chatswong, Eastwoo and Epping - mostly local Asians - highly desirable places to live, plenty of amenity and transport - no they won't take a big hit...even non-Asians like to live there believe it or not and they are prime areas close to jobs, shopping, restaurants, schools and transport.

The otp properties in gold coast, brisbane cbd, Sydney cbd, where the project marketers specifically target overseas chinese investors, they hold investor concerts overseas to chinese, Singapore markets, these properties have attractive incentives like guaranteeing rent return for 2 years etc - yeah I believe they will take a hit.

it's amazing how every man and his dog has suddenly become "real estate agents" as a side job selling otp brisbane properties, there must be lots of stock to move.
 
there are two types of properties:
it's amazing how every man and his dog has suddenly become "real estate agents" as a side job selling otp brisbane properties, there must be lots of stock to move.

hahaha can't agree more, my fb page always flooded by these people and every now and than some of my friends will approach me and tell me they are selling otp lol
 
I think there is a common misunderstanding that Chinese buyers = foreigners

A lot of these people have permanent residency of some sort. Even if they don't, they would have kids who have graduated from universities here and have their residencies. A lof of these young kids would then buy the properties on the parents behalf. Do you classify them as local or foreigners? They would buy these properties for their own use and as long as they have income to service their debts, then I don't see the prices come crashing down. The properties may even be bought outright without bank's funding
 
there are two types of properties:

Chatswong, Eastwoo and Epping - mostly local Asians - highly desirable places to live, plenty of amenity and transport - no they won't take a big hit...even non-Asians like to live there believe it or not and they are prime areas close to jobs, shopping, restaurants, schools and transport.

The otp properties in gold coast, brisbane cbd, Sydney cbd, where the project marketers specifically target overseas chinese investors, they hold investor concerts overseas to chinese, Singapore markets, these properties have attractive incentives like guaranteeing rent return for 2 years etc - yeah I believe they will take a hit.

it's amazing how every man and his dog has suddenly become "real estate agents" as a side job selling otp brisbane properties, there must be lots of stock to move.

... and don't forget Parramatta too mate :)
it is the suburbs of the future, you can't go wrong investing in Parramatta existing unit or a house.
 
I doubt it, when the mining jobs disappear, demand plumetts

cant see any reason even if asian recession for demand to plummet

also there will be always a demand for good schools, so id say unlikely
 
Top