Green Square, NSW - all 174 apts OTP sold this weekend

D_One said:
A 25 and 27 year old couple paying over $1.15mil for a property. Impressive!!
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I think its impressively stupid. Unless they are financially independent already then its a different story. Unlikely though.

I find it very interesting she said this " I like the fact that they are going to develop the whole area and not just a single building,? Ms Chang said.":eek::eek: and she thinks that's a GOOD thing....?


oh well.
 
Looking at their surnames, I would not be surprised if they have assistance from their family members in buying the unit. Given they bought 3+Study I guess it should be $1.3M+.

Well their mentalities are different. If the area is well developed with lots of units, then there should be lots of shops and amenities. This means more convenience to live there compare to what is there now. It actually stimulates demand to live there once it is all setup.

I was looking at buying it as well but the price was too high for me. It is after all only 1 stop from Central station.
 
tang said:
http://www.afr.com/p/business/property/green_square_first_release_hits_cxKvVoCcH4xzmx1yN5HfMO

wow! who has gotten a piece of this? any thoughts on the area and/or the demand? (i couldn't find a dedicated thread for green square; apologies if there already is). i initially felt like it was to be so congested and just madness but now after reading this article, i regret not registering for this one.........................:eek::(
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I think it's important to remember that developers are now able to sell 100% of OTP and new dwellings to foreign owners (as long as they market locally as well as overseas) which has impacted this sector of the market enormously- there used to be restrictions (lifted in 2009 from memory) that they could only sell up to 50% to foreign buyers.
 
Jacque said:
I think it's important to remember that developers are now able to sell 100% of OTP and new dwellings to foreign owners (as long as they market locally as well as overseas) which has impacted this sector of the market enormously- there used to be restrictions (lifted in 2009 from memory) that they could only sell up to 50% to foreign buyers.
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Given my heritage the same as those example buyer, I know they really like to buy new if possible.

Since when the overseas investors can buy 100% of the OTP development? Even earlier this year I spoke with my REA friends, they said the max is like 50-60%.
 
The only maximum imposed are those by banks when using a large level of leverage.

However, with these large sites if a developer leverages it is relatively low circa 50%.

If you are borrowing 70% for the development the bank may impose that you need x amount of pre-sales and only 50% of those pre-sales can be from foreigners.

Even if there is a law from the government that limits pre-sales its just like the FIRB and never enforced as there is no way to check.
 
IMO this is not a reflection of the Sydney market at all - just a reflection of brand new OTP developments marketed specifically to foreign buyers using foreign money.

I daresay very few "average Australians" have the same appetite for this type of property when they are house hunting
 
Under FIRB rules, non-resident foreign investors can buy OTP or newly built apartments or houses (they can also buy existing house and land but need to knock down the house and rebuild).

Until Dec 2008, the rules limited developers to selling up to a max of 50% of a project to foreign investors. Then Rudd removed that limit among his stimulus measures to address the GFC... Under the newer rules (still in place) a developer can - hypothetically (and yes it will obviously depend on other financing restrictions as per poster above) sell 100% of a resi dvpt to foreign investors. The developer can actually obtain approval from FIRB, in which case foreign buyers need not make their own application- makes it much easier this way and hence the attraction here.
 
Depends on priorities.

Lot of mid 20 couples where both are professionals would be able to afford it.

My mates who were a little more grounded, living at home and not living lavishly are getting married and combined would have close to $400-500k in savings.

Bank would lend the remainder I imagine as combined they would be on over $150k incomes, only needing to borrow another $800k. They wouldn't be looking at starting a family till 30-32.
 
nhg said:
Depends on priorities.

Lot of mid 20 couples where both are professionals would be able to afford it.

My mates who were a little more grounded, living at home and not living lavishly are getting married and combined would have close to $400-500k in savings.

Bank would lend the remainder I imagine as combined they would be on over $150k incomes, only needing to borrow another $800k. They wouldn't be looking at starting a family till 30-32.
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wow your mates must be earning this figure since they finish high school with a strong determination of savings!!!! mid 20s, combine income of $150k savings of $400-$500k:eek:

I can't imagine the feeling of looking at my bank account with $400k cash sitting nicely in my account:rolleyes:
 
but you guys also need to understand that in Asia country specially China and Hong Kong, people buy these property not to invest...........but to gamble.

Usually what they THINK they will achieve is they pay 10% to buy the OTP contract, and sell it to another person which THINK this is a gold mine and happy to pay higher prices to acquire that unit and thought they have bought a bargain. Especially when the media is reporting how quickly these units got sold within a few hours leading these overseas buyers think OTP units are the way to go in Australia.

In this case the first buyer only need to fork out 10% of the property price, and pocket some quick cash within 6-12 months, and the next buyer repeat the same step and so on.............until on settlement date the bank only value the unit with a 30% discount on the price they agreed.:eek:

This is a common practice in China and Hong Long and developers were targeting people with the same mentality to speculate on OTP contracts.

To me this is as dangerous as swimming around sharks while you're nose bleeding.....................

In my previous job I've encountered way too many of these Chinese buying into OTP with the agent threatening them if they don't make a decision within 2 minutes this unit will go into someone else's hand.
 
Another reason not to buy off the plan..

Prices are set for a competitive market where alot of the buyers can ONLY buy OTP..

If long term valuations of our properties do not take into account foreign buyers, then why pay prices that do take into account foreign buyers..

Also it's like buying unconditional with no finance clause, and no finance approval, since no bank will give an approval 2 years in advance that lasts that long.. gambling is correct :)
 
Well shouldn't be a main concern for most people. Stuff that wouldn't have existed otherwise (Chinese developer), buyers that wouldn't have existed otherwise (Chinese investor) and tenants that wouldn't have existed otherwise (Chinese students). Doesn't affect the mainstream market that much.

But when I see stuff like this, I know Shanghai and Guangzhou are very good value right now.
 
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