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http://www.smh.com.au/business/chin...as-homes-is-here-to-stay-20140806-100vnc.html

Chinese rush for Australia's homes is here to stay
Date
August 6, 2014
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Chinese investors have overtaken Americans to become the biggest foreign buyers of property, bolstering demand for new projects.
Chinese investors have overtaken Americans to become the biggest foreign buyers of property, bolstering demand for new projects. Photo: Bloomberg
Ausin Group (Finance), a company that offers property and mortgage broking in Australia to Chinese buyers, expects to sell two-thirds more homes and to double the amount of loans it arranges for buyers as demand from mainland China surges.

The company forecasts $1.5 billion in sales of new residential properties in the year ending June 30, compared with $900 million over the previous 12 months, said Ausin's Sydney-based managing director, Joseph Zaja. The value of mortgages the company arranges through Australian banks is expected to climb to $500 million in the 2015 calendar year, he said.

Ausin is benefiting from surging demand from China, where the housing market is faltering. Chinese purchasers overtook Americans to become the biggest buyers of real estate in Australia in the 12 months through June 2013, plowing $5.9 billion into commercial and residential property, a 42 per cent increase from the previous 12 months.

"I don't see the trend slowing down," Zaja said. "It's here to stay."

New Developments

Ausin sources projects from local developers, including Stockland and Mirvac, marketing them through its 11 offices in China, Zaja said. The average price of the properties Chinese buy in Australia is $630,000 according to the company.

When Zaja and a partner based on the mainland, whom he declined to identify, first set up Ausin in 2009, banks would only finance developments where less than 30 per cent was sold to overseas buyers, he said.

"Now, that's up to 100 per cent in some cases," he said. "The larger banks had the view that overseas buyers were a much higher risk than local buyers. But we've been able to provide them with statistics that less than 1.5 per cent of all our purchasers cannot complete" their purchases.

Ausin last year began operating as a mortgage broker, and now arranges home loans through local banks for about 93 per cent of its buyers, Zaja said. The average borrowing is 70 per cent of a property's value, or about $440,000.

The company, which also offers immigration services to Chinese wanting to move to Australia, is setting up a fund targeting those from the mainland applying for a Significant Investor Visa, Zaja said. The visa allows foreigners investing at least $5 million in Australia to qualify for residency. Chinese nationals accounted for 91 per cent of applications and 86 per cent of grantees as of the end of June, according to the office of the assistant minister for immigration and border protection.

Immigration Surge

Ausin has seen a 300 per cent increase in demand for its immigration services over the past six months, the company said in a release last week.

Concerns by locals that overseas investment, particularly from China, is driving up property prices and reducing affordability has prompted a parliamentary inquiry into foreign buying of domestic real estate. The report from the inquiry will be released in October.

Overseas purchasers bought 10.2 per cent of new properties in the quarter ended June 30, falling from a record 13.9 per cent over the first three months of the year, according to surveys of real estate professionals by National Australia Bank. They accounted for 7.2 per cent of purchases of existing properties, compared with 9.5 per cent earlier.

Home prices across Australia's state and territory capitals rose 10.2 pe rcent over the year through July from a year earlier, according to RP Data-Rismark. Sydney and Melbourne led the gains, with values climbing 14.8 per cent and 11 per cent respectively.

In China, real estate is the biggest short-term risk to the economy, said Markus Rodlauer, mission chief for China at the International Monetary Fund. Authorities are trying to avert a collapse of the real-estate market after data showed housing prices fell in 55 of 70 cities in June from May, the most since January 2011 when the government changed the way it compiles the statistics.



Read more: http://www.smh.com.au/business/chin...re-to-stay-20140806-100vnc.html#ixzz39hqCk9Km
 

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Is living in China that bad?


If you have USD 1 million or earned USD 3000 a month.

Which one better, living in China or Australia/Canada?
 

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So Chinese investors have overtaken Americans to become the biggest foreign buyers of Australian property? So the Americans have been the biggest foreign buyers for a long time and now the second biggest buyers. Is it really that bad to live in the US?
 

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^^
It's different between for investment and for stay.

According to some Japanese who live in third world country like mine, assigned by Japanese parent company in Japan. Staying in third world country with Japan salary standard, it actually even better than living in Japan.

Although sometimes I think living in Japan is actually better than in third world country.
 

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^^

In China even tough you are rich you can't escape the pollution and dirty environment.
I'm wondering, do people really care about air pollution?

My country capital is among world biggest city, with massive traffic jam everyday, the air pollution is actually quite worse. The dust in home blow by the wind from outside is black, not brown or white. But people seems don't have any issue with it.


I wonder if the article is wrong by saying rush to stay?

Do Mainland Chinese not happy living in China?
 

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^^
It's different between for investment and for stay.

According to some Japanese who live in third world country like mine, assigned by Japanese parent company in Japan. Staying in third world country with Japan salary standard, it actually even better than living in Japan.

Although sometimes I think living in Japan is actually better than in third world country.
Many Chinese investors are now investing overseas for future profits, with no intention of staying anyway.

You still have not explained why the Americans have been the biggest buyers of Australian properties for so long.
 

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Many Chinese investors are now investing overseas for future profits, with no intention of staying anyway.

You still have not explained why the Americans have been the biggest buyers of Australian properties for so long.
The article said "rush to stay".

The keyword that raised my eyebrow.


It's different question from investment.
 

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^^
Did you enjoy it during your stay in China compare with in Sweden?
Yes, it was really fun living in China. China is a really interesting place and I felt that it's "the place" that's interesting right now. I was very impressed of the great infrastructure and skyscrapers. The level of developing was astounding.

China is a great place visiting and living, but for living standards and quality of life I felt Sweden is much more comfortable than China. China still feels like a developing country, the standards can vary very much. You can walk from a rich area to a poor area within 5 minutes. To achieve a level that resembles a developed country you need a salary at least double the average local salary in China. In China even if you are rich living in your apartment complex you still need to cope with the bad air, chaotic traffic, and crowdedness.

So for living every day life I prefer developed countries but for visiting or living temporarily China is really fun. :)
 

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The article said "rush to stay".

The keyword that raised my eyebrow.


It's different question from investment.
Why China’s rich are leaving

Pollution, tainted food and education are causing many of the country’s wealthy to flee, survey finds.

Earlier this year, the best company at surveying the rich in China announced that more than 60% of the people it surveyed had already immigrated to another country, or were considering doing so.


The question for the Hurun Report, which publishes an annual China rich list, was why? Was pollution driving people abroad, weariness over China’s political crackdowns, or something else entirely?

It turns out the questions also nagged Rupert Hoogewerf, founder of Hurun. At the time, his best guess was that pollution and the desire to park some assets abroad were driving rich Chinese to the United States, Canada, and Australia—the top three destinations for those leaving China.

But to find out for sure, he conducted a follow-up survey that is being released today, and Fortune got exclusive early access. Hurun teamed with Visas Consulting Group to ask 141 wealthy Chinese questions about emigration and where they’re moving their money. The researchers discovered that three factors drove emigration from China, with each factor accounting for 20% of the responses:

People moved because they wanted better options for their children’s education; they were distressed about the growing pollution problems plaguing China’s cities; and they were concerned about food safety in the country, which in the latest scare involved tainted dog treats.

“Again and again, when talking to people on an individual basis, those are the issues they raise,” says Hoogewerf.

Maybe most surprising, two-thirds of those emigrating, or considering doing so, are also considering giving up their Chinese nationality.

As I wrote in March, just as Beijing was coming out of the throes of a smoggy winter, those who can avoid China’s pollution and food scares are doing so. It’s troublesome for the Chinese government because experts conclude that big improvements to the air remain at least a decade away, not to say anything about China’s food safety or its education system.

The Hurun survey produced other interesting results. As a percentage of their total wealth, rich Chinese invest on average 16% abroad. The most popular investment choice is real estate and the U.S. is the overwhelming favorite destination. Los Angeles ranks as the most popular city to buy real estate, followed by San Francisco and New York. Vancouver ranked as the third most popular city. Detached villas were the preferred type of housing, followed by apartments and townhouses.

Those surveyed all had assets worth more than $1 million and on average were worth $7 million.

The top destinations for rich emigrating from China are as follows:



The wealthiest citizens in any country are the most mobile, so the flight of wealthy Chinese isn’t in itself a surprise. But unlike rich Americans fleeing their home country to avoid taxes, the Chinese are leaving because of basic desires—clean air, clean food, good schools. If China’s government doesn’t improve these, the flight of China’s wealthiest residents won’t stop.
http://fortune.com/2014/06/05/china-rich-immigration/

Just check out all these articles.

https://www.google.se/webhp?sourcei...pv=2&es_th=1&ie=UTF-8#q=chinese rich emigrate
 

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China's rich make plans to avoid smog

The country’s wealthiest residents are emigrating to other countries, in large part to avoid awful air pollution.

By the 1970s, Central Park was in a state of decay. Bridges were crumbling. Meadows had dried up. Graffiti and vandalism blighted playgrounds and benches. There was an overwhelming feeling that its best days had passed. “Positive use had increasingly been displaced by illicit and illegal activity,” is how the Central Park Conservancy describes it today.

Then George Soros stepped in. Frustrated by what he and others saw as New York City’s inept management of the 160-year-old institution, Soros and another financier commissioned a study on potential fixes. Its chief recommendation was creating a private citizen-based board to oversee an individual running the park’s operations — in effect, allowing private citizens to control the park. Soon the not-for-profit Central Park Conservancy was created, and the area returned to its former glory. Thirty years later the conservancy provides 75% of a nearly $60 million annual park budget and is a New York institution unto itself. The board of trustees includes former J.P. Morgan Chairman and CEO William Harrison, KKR’s Henry Kravis, and the hedge fund manager John Paulson, who two years ago announced he would give $100 million to the conservancy, the largest park donation ever.

The growing wealth gap around the world is raising concerns about economic fairness and class divisions. But Central Park’s revival illustrates the importance of the very wealthy in civic society. Their private dollars fund projects that governments won’t, and they have an especially key role in urban centers. All this explains why reports of China’s air pollution driving out wealthy residents are so troubling. Is China losing its most important residents to smog?

The air in northern Chinese cities has been poor for a while. But after the past few years of “air apocalypses” and record-high levels of PM 2.5, the dangerously small pollutants under 2.5 micrometers in size (1/30 the width of a human hair) that find their way into the bloodstream and have been linked to cancers and respiratory problems, citizens have increased complaints and growing numbers of rich have started making plans to move away.

A recent survey provides the strongest evidence yet that China’s polluted cities risk driving away the rich. Released in January by the Hurun Research Institute, the survey shows 64% of China’s rich (those with wealth above $1.6 million) were either immigrating to another country or planning to, a rise from 60% in the last poll two years ago. That came as a surprise to Rupert Hoogewerf, founder of the Hurun Report, an annual China rich list. He wasn’t expecting the already high figure to grow. He says pollution and food safety was the second-biggest reason for emigrating, after the general desire for security and financial well-being. Although the numbers of those emigrating haven’t yet reached a critical mass, Hoogewerf says “a lot of families are finding a lot of other rich families are going overseas,” providing examples to follow.

What’s happening is that those who can avoid the smog, especially families with children, are escaping what a recent Chinese study reportedly called “unlivable” cities like Beijing. They’re seeking permanent residency in America and Canada, and European countries Cyprus, Portugal, and the U.K.

Earlier this winter I spoke with half a dozen wealthy mothers in Beijing who explained to me how pollution had some of them considering moving away. It was enlightening to hear because what the survey doesn’t tell you is that the rich don’t take moving to another country lightly. The women explained what a hard decision it was to make. China’s culture and language had them wanting to stay. But many of them were afraid for their children’s health, leading them to plans to go abroad.

I met the mothers at a Starbucks. They swapped stories about smog like others might politics or sports in the café that opened to a luxury mall with Gucci, Prada, and Tom Ford boutiques.

Feng Fairbanks has two daughters, who are 10 years old and 8 years old. The local PTA raised 200,000 RMB ($33,000 USD) to buy air purifiers so that her children can at least enjoy clean air inside the school where recess is often cancelled because of smog. She wanted her daughters to attend school longer in Beijing, but she’s returning to the U.K. with them in July. The air pollution was becoming too serious to plan on staying in Beijing for the long term. Her British husband, who runs a business consultancy in Beijing, is staying in China.

Coco Xiao told me she avoids playing with her two daughters outside. Last summer the family toured the U.S. — visiting Atlanta, Las Vegas, Los Angeles, then San Francisco — and was “amazed by the air.” Her husband is setting up a consulting business in San Francisco in part to give the family an option to escape the pollution. She says the “government cannot afford to wait” to fix the air, but she’s staying in Beijing for now.

The other mothers were more hesitant. As they sipped teas and lattes, they explained how the pollution was devastating but bearable — for the time being. May Guo, dressed fashionably in black leather boots, has a 9-year-old daughter with asthma. She pulled out a 3M mask — “the best,” she tells me — then explained that air pollution is one of many factors to consider before leaving China. There’s family, jobs, culture. She’s waiting to make a decision on leaving.

Of course, many rich will stay in smoggy Beijing and China’s other polluted cities. Opportunities in the world’s fastest-growing major economy are hard to turn down. And surveys show the Chinese remain loyal about investing at home. But the air pollution problem isn’t getting better anytime soon, and neither will the flight of China’s wealthiest residents.
http://fortune.com/2014/03/18/chinas-rich-make-plans-to-avoid-smog/
 

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^^
I kinda disbelieve.

The author of the article must be drunk, or just over hype it purposely.

Before China became as dirty as today and green technology was not as popular and advance as today, most people willingly and happily to move to developed country despite of the smog, water and land pollution there.
 

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Before people emigrated China because of poverty and lack of freedom. Now when many people are rich they demand other things since they already are rich.
 

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Discussion Starter #15
The big dangers of our millionaire visas
PUBLISHED: 16 AUG 2014 02:38:00 | UPDATED: 16 AUG 2014 06:38:13
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The big dangers of our millionaire visas
House prices in Vancouver have become completely disconnected from wages and Conference Board of Canada senior economist Robin Wiebe says there’s a direct link with China. Photo: Bloomberg
ANGUS GRIGG Shanghai
In Vancouver, Canada, they have become known as “zombie *suburbs” – inner city areas dom*inated by new apartment de*velopments, which despite their wealth and population *density have failed to thrive. They are not dead, but like the zombie, only half-living.

Canadian urban planner Andy Yan coined the phrase to try to explain the effect a large inflow of offshore money, mainly from China, was having on parts of Vancouver.

He studied the Coal Harbour area and found that 25 per cent of the apartments were unoccupied for much of the year.

“These places have the density of Manhattan, yet the retail shops and restaurants on the ground floor are struggling,” he told AFR Weekend.

Anecdotes such as this and the accompanying surge in property prices were part of the reason Canada scrapped its so-called “millionaire visa scheme” in February.

Just a few weeks later Canberra took the opposite approach and sought to speed up approvals for a similar scheme in Australia known as the Significant Investor Visa.

Figures released by the federal government on Tuesday showed that 343 visas have now been approved under the program and another 602 people are in the queue. If all these are approved, that will generate $4.7 billion in funds flowing into Australia, as each visa holder is required to invest $5 million into an approved investment scheme for four years, in return for permanent residency.

It’s an impressive number for capital-starved Australia and is likely to grow substantially, yet the Canadian experience should motivate politicians and urban planners to look behind the headline figures.

Canada, which began its experiment with economic migration in 1986, has a mixed story to tell.

From Yan’s point of view, constant evaluation of the program is critical. He said one consideration in stopping the Canadian scheme was that it had never been properly studied. “We never evaluated if economic migration made sense,” says Yan, who works for Bing Thorn Architects and sits on Vancouver’s City Planning Board.

That left many grasping at anecdotes to try to explain what was happening in Vancouver and if it was a positive or negative for the city.

Yan’s research suggests the economic migration program increased the city’s rental stock, along with allowing for better urban design and amenities like daycare centres and parks.

But it has also played a part in making Vancouver second only to Hong Kong on the list of the world’s least affordable cities to buy a house, according to Demographia, with Sydney fourth and Melbourne sixth.

In attaining this unwanted accolade, house prices in Vancouver have become completely disconnected from wages.

DIRECT LINK WITH CHINA
Robin Wiebe, a senior economist at the highly respected Conference Board of Canada, laid out the numbers and found a direct link with China.

“Despite a decent local economy and favourable demographics, Vancouver’s housing market was relatively sluggish during the 1990s,” he wrote in a research paper.

He said real estate prices grew at an annual rate of just 3 per cent over the decade to 2000. In the following decade, according to Weibe, prices doubled, including an annual rise of 20 per cent in 2006 alone.

“Casual observations and statistical tests both hint that China’s influence rivals that of three key domestic factors: Vancouver’s population growth, changes in employment and Canadian mortgage interest rates.”

In his research Weibe finds a link between China’s GDP growth and price rises in Vancouver, but others like Yan also see other factors at work.

Yan talks about the rise of Vancouver and more recently Sydney and Melbourne as “hedge cities”. That is, cities where wealthy Chinese and other nationalities buy property as an insurance policy against things going wrong at home.

Yan speculates this is one reason why “house prices in Vancouver have completely decoupled from wages”.

And there are now signs of this in Australia, where much of the Chinese buying has been concentrated around inner city suburbs close to universities.

Data released by the Australian Bureau of Statistics on Wednesday showed wage growth at a record low of 2.6 per cent for the year to June 30.

Yet on the same day the ABS said house prices had risen 10 per cent across Australia, led by a 15.6 per cent rise in Sydney and 9.3 per cent in Melbourne.

No one is suggesting this decoupling of house price and wages in Australia is entirely driven by Chinese buying and certainly not due to the Significant Investor Visa Scheme, which is still in its early stages.

But even Reserve Bank governor Glenn Stevens, a man not known for sensational statements, has said the effect can’t be entirely discounted.

He said cashed up Asian buyers, mainly students, were “quite prominent” in inner city areas and had an effect on “asset prices and the exchange rate”.

Stevens said he had reached this conclusion partly by noticing ads for Australia property while passing through Singapore.

This suggests even the country’s most sober economist is relying somewhat on anecdotes rather than analysis, which is exactly what the Canadians have warned against.

One of the first points made in a report released earlier this month by stockbroking firm CSLA was the lack of “hard data” on *Chinese investment in the Australian housing market.

Everyone is still coming up with their best guess.

One of the more credible is Credit Suisse, which estimates Chinese buyers are currently purchasing 12 per cent of all new homes in Australia, after overtaking the United States as the number one investors in local real estate.

This lack of hard data is a constant in the Canadian experience, but one person who has studied the field more than anyone is David Ley, a professor at the University of British Colombia, who holds the country’s research chair in geography.

His blunt message for Australia is: Don’t expect much beyond the upfront payment from the Significant Investor Visa.

“The wider economic benefits for Canada have been much smaller than expected,” he said. “There has not been a serious effort to develop economic projects.”

This is backed by a startling number that shows those who have entered Canada via its investor visa program pay less tax than any other immigrant group, including refugees.

The issue is that this new wave of economic migrants is vastly different from those who came before them.

SEEKING A PASSPORT AND ITS PROTECTION
They are seeking a passport and the protection this provides, rather than a new place to live.

The experience in Canada is that those on the investor visa keep their economic interests in China and use cities like Vancouver and Toronto as a second home.

“It [the investor visa] was good for luxury car dealers, the real estate industry and those selling household items,” says Ley who authored the book Millionaire Migrants.

“But the broader benefits were much smaller than expected.”

Australia is likely to face many of these issues, as the Significant Investors Visa requires immigrants to only spend 40 days each year in the country.

“That sounds like a summer holiday to me,” Ley says.

It should be noted, however, that the upfront payment in Australia is far larger than what Canada demanded.

Under its program applicants were asked to provide the Canadian government with an interest free loan of $C800,000 ($787,000) over five years and have minimum assets of $C1.6 million.

In scrapping the scheme the government said; “We believe those who want to come to Canada should live here, pay taxes here and invest their money directly in the Canadian economy”.

“It has significantly undervalued Canadian permanent residency,” a government spokesperson said.

Such a conclusion will not be available to Australia for some years.

According to CLSA the economic benefits from surging Chinese interest in Australia is likely to be relatively narrow.

It identifies property groups such as Mirvac, Lend Lease and Goodman as the biggest winners, along with construction materials company Fletcher Building.

This comes back to the motivation behind the decision to seek Australian permanent residency.

According to CSLA more than 65 per cent of migrants cited their children’s education as the main factor, followed by Australia’s clean environment.

Just over 10 per cent of respondents cited “business investment” as a factor.

Put simply, we can expect to mirror the Canadian experience with a construction boom that, according to CSLA, will run for the next six years.

But the bigger question is whether will also see the rise of “zombie suburbs” and runaway house prices without benefits for the broader economy.

http://www.afr.com/p/national/the_big_dangers_of_our_millionaire_sQOIKN9QZvTIouhQ3FldMP
 

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Discussion Starter #16
http://www.theage.com.au/business/p...property-set-to-continue-20140815-104bpj.html

'Phenomenal' Chinese demand for property set to continue
Date
August 15, 2014
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Patrick Commins
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Demand from Chinese buyers for new Australian properties is set to continue for at least three years.
Demand from Chinese buyers for new Australian properties is set to continue for at least three years. Photo: Glen McCurtayne
Property billionaire Lang Walker says Sydney, Melbourne markets 'too hot'
House hunters may complain, but the “phenomenal” influx of Chinese money into the local residential property market may be the best thing that happened to the local economy as it struggles to make its difficult transition from an unprecedented mining boom.

The demand from foreign investors for Aussie bricks and mortar is set to intensify for at least three years, driving a boom in apartment construction activity and boosting the bottom lines of listed companies such as Lend Lease, Mirvac and Goodman Group, according to exhaustive new research by broking group CLSA.

Source: CLSA
Source: CLSA
And while there have been plenty of warnings about foreign investors pushing property prices beyond the reach of a generation of local prospective homeowners, Chinese investment may be the catalyst for growth in a non-mining corner of the economy – building and construction – that traditionally is a strong generator of employment.

Around 10 million of the wealthiest Chinese families, or around one in seven, are interested in migrating to Australia, according to a survey conducted by the broker. And home ownership in a desirable destination country is “a key reason” for the flood of money coming into the Sydney and Melbourne property markets, conclude the broker’s analysts.

Not all of those 10 million households will have the financial wherewithal to ultimately act on their desire to relocate Down Under, but it is representative of a powerful trend.

Source: CLSA
Source: CLSA
China is already the number one source of source of foreign money in the local real estate market, and anecdotal evidence suggests that that position has only strengthened this year. Sydney and Melbourne have overwhelmingly been the destinations of choice.

More than money
The rationale for this growing appetite for Aussie bricks and mortar is more than just financial.

Chinese investors are lured by the prospect of one day moving to a country with clean air, a good education system and a strong legal system. Indeed, the only country Australia ranks behind as a desirable destination for Chinese immigrants is Canada, where new restrictions have been put on foreign investment and immigration.

Existing regulation, administered via the Foreign Investment Review Board, restricts non-residents to new properties. There is anecdotal evidence that these rules are circumvented to illegally allow foreign capital into established properties, but the extent of that is hard to estimate, says CLSA senior analyst Andrew Johnston.

But Johnston concedes that “there will be some Australian residents that are homebuyers that get displaced from buying a new apartment due to price, such that second-hand apartments become relatively more attractive”.

Bottom lines
While the news is mixed for some home buyers, it’s great news for the bottom lines of the country’s biggest listed property developers – and potentially their shareholders.

In putting together their report on the impact of Chinese investment on the local housing market, CLSA analysts spent the past six months meeting more than 50 property industry contacts, both here and in China, in order to fill in the gaps in a high-profile story which has often relied more on anecdotal evidence than hard data.

The conclusion they reach is no less striking: the “phenomenal” Chinese investment in Aussie housing will continue “for at least three years”.

That will drive construction activity as developers rush to fill the gap between supply and demand.

CLSA predicts building approvals for single-family dwellings to peak at a seasonally adjusted rate of 140,000 in June 2016 – above recent peaks of 128,00 per month in late 2003 and slightly fewer than that in October 2009.

Apartment approvals won’t peak until June 2017, say the analysts, at 106,000 per month, well ahead of previous cycle highs of 79,000 in August 1994 and 95,000 in October 2002.

Stocks to watch
As a result the CLSA analysts are encouraging clients to buy stock in Lend Lease, on the basis that the rising tide of Chinese investment into the local residential property market, and into new apartments in particular, will drive the developer’s earnings higher over that period – and maybe beyond.

A “buy” rating at the broker suggests the an investment in the company’s shares could generate a combined, or total, return of more than 20 per cent in share price growth and dividends over the coming 12 months.

Lend Lease has a strong pipeline of apartment construction activity – crowned by its development at Sydney’s high profile Barangaroo South, where the company has pre-sold all 159 units in the first two residential buildings. The company’s other developments include the 124-apartment development “The Green” in Brisbane, and “Concavo” in Melbourne.

The broker’s research team also recommends buying shares in Mirvac – one of Australia’s largest apartment developers, while takeover target Australand is a “prime beneficiary of Asian demand”.

The analysts also highlight Goodman Group, which has “identified that it can develop 35,000 apartments in Sydney and Melbourne” by converting its inner-ring industrial assets into residential projects. Apartment agent CBRE called Goodman’s residential landbank as “the best in Sydney”, say the analysts.

In its recent results presentation, the company noted that “urban renewal [will] incrementally drive long term value for the group”.

The CLSA analysts also like the dual-New Zealand listed Fletcher Building, with that country benefiting from similar Chinese investment trends as Australia. And while the building products company has limited exposure to Australian apartment construction, it will receive a boost from continued single-family construction.

Rules will stay
The researchers believe that its unlikely there will be significant changes in local foreign investment rules, despite a current Parliamentary enquiry.

Nor do they believe Chinese authorities will place new restrictions on capital moving out of the country.

They are similarly sanguine about the prospect of a property price crash in the top Chinese cities, and note that the non-financial motivations for investing in overseas mean “the price of property in their home market may have limited influence on their intentions and ability to invest in Australia”.

In other words, the trend is here to stay. And behind the doom-laden warnings of inflating property prices, an influx of investment that sparks a jobs-heavy housing construction boom may prove to be the tonic for an economy struggling to transition from its mining boom.

Follow us on Twitter @BusinessDay



Read more: http://www.smh.com.au/business/prop...o-continue-20140815-104bpj.html#ixzz3AeF08PZA
 

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Discussion Starter #17
http://www.theaustralian.com.au/bus...as-lending-falls/story-e6frg90f-1227023970417

Worries over China growth as lending falls
AFP AUGUST 14, 2014 10:30AM
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China's bank lending plunged in July as the weakening property sector hit demand for loans, statistics showed as other key indicators slowed, raising concerns for growth in the world's second-largest economy.

Domestic banks' new yuan loans amounted to 385.2 billion yuan ($62.5 billion) last month, the People's Bank of China (PBoC) said in a statement, a drastic decline from June's 1.08 trillion yuan.

Signs of strength in China's economy have been tempered by nagging worries over the potential for a downturn in the huge property sector to dampen growth.

An official of the PBoC, China's central bank, attributed the fall in lending to the real estate market "undergoing some adjustments" and "downward pressure in the domestic economy".

An independent survey of Chinese property prices showed their decline accelerated in July, dropping for the third straight month.

China's economy grew a stronger-than-expected annualised 7.5 per cent in the April-June quarter, accelerating from 7.4 per cent during the first three months of the year, which was the worst since a similar expansion in July-September 2012.

ANZ Bank economists Liu Li-Gang and Zhou Hao said the July lending data was a significant cause for concern.

"It means that the financial system is engaging (in) a rapid deleveraging process, which could have significant repercussions on the real economy," they wrote.

"Such a sharp drop in credit is in fact a quantitative tightening, which will lead to high interest rates and endanger China's macroeconomic objective."

UBS economist Wang Tao, however, said the drop could be explained by factors including strong deposit and credit growth recorded in June, a crackdown on so-called shadow banking and weak credit demand in the real economy.

"We do not believe these data reflect a credit tightening" by the PBoC, she said in a note.

China's importance as a global growth engine was underscored by figures earlier in the day showing that Japan's economy - the world's third largest - shrank an annualised 6.8 per cent in the April-June quarter after a sales tax increase doused spending.

Industrial production, which measures output at factories, workshops and mines, rose 9.0 per cent year-on-year in July, the National Bureau of Statistics (NBS) said.

Retail sales increased 12.2 per cent in the same month, the NBS said, while fixed-asset investment, a measure of government spending on infrastructure, rose 17.0 per cent year-on-year in the first seven months.

The industrial output figure marked a slowdown from the 9.2 per cent recorded in June but matched the median 9.0 per cent increase predicted in a survey of 15 economists by The Wall Street Journal.

Retail sales growth, meanwhile, slowed from 12.4 per cent in June.

Fixed-asset investment - which is only released cumulatively - came in below the 17.3 per cent reading for the first six months of the year in June, and also below the median 17.3 per cent forecast.
 

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Yan talks about the rise of Vancouver and more recently Sydney and Melbourne as “hedge cities”. That is, cities where wealthy Chinese and other nationalities buy property as an insurance policy against things going wrong at home.
Is China, as a country, going to fail and collapse decades later?

That Western country like Australia, Canada and Swiss will last longer than China?

Is this what most of mainland Chinese believe?

So basically mainland Chinese don't have believe about their people, society, country and civilization?

How about you?
 

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Yes, it was really fun living in China. China is a really interesting place and I felt that it's "the place" that's interesting right now. I was very impressed of the great infrastructure and skyscrapers. The level of developing was astounding.

China is a great place visiting and living, but for living standards and quality of life I felt Sweden is much more comfortable than China. China still feels like a developing country, the standards can vary very much. You can walk from a rich area to a poor area within 5 minutes. To achieve a level that resembles a developed country you need a salary at least double the average local salary in China. In China even if you are rich living in your apartment complex you still need to cope with the bad air, chaotic traffic, and crowdedness.

So for living every day life I prefer developed countries but for visiting or living temporarily China is really fun. :)
Don't you think you feel comfortable in Sweden than China, because it's your home? While in China, perhaps you were staying at your cousin's house?

The great thing about living in developing country is, there always a new thing in the city as the city move very fast. New shopping mall, new hotel,, new office tower, new restaurant, theme park, etc.

Not to mention that living in big city, despite of the crowdedness, which is actually the advantage, it get the attention from many companies around the world. They opened shop, cafe, restaurant, etc. You can drink Taiwanese bubble drink, authentic American BBQ, Brazilian , Mexican, Greek, Japanese sushi in many kind of variety, Korean, molecular gastronomy, etc. There's always something new each year. And old restaurant is also updating their menu too.

Go to local supermarket and see how many chocolate and snack brand there. So many type, flavor, weird, etc. To be honest, I saw more items in my local supermarket than in Taiwan.

Crowdedness is also what many tourist want too, when visiting and choosing to stay in a big city. It's the big city and it should be like that kind of image.
 

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Don't you think you feel comfortable in Sweden than China, because it's your home? While in China, perhaps you were staying at your cousin's house?

The great thing about living in developing country is, there always a new thing in the city as the city move very fast. New shopping mall, new hotel,, new office tower, new restaurant, theme park, etc.

Not to mention that living in big city, despite of the crowdedness, which is actually the advantage, it get the attention from many companies around the world. They opened shop, cafe, restaurant, etc. You can drink Taiwanese bubble drink, authentic American BBQ, Brazilian , Mexican, Greek, Japanese sushi in many kind of variety, Korean, molecular gastronomy, etc. There's always something new each year. And old restaurant is also updating their menu too.

Go to local supermarket and see how many chocolate and snack brand there. So many type, flavor, weird, etc. To be honest, I saw more items in my local supermarket than in Taiwan.

Crowdedness is also what many tourist want too, when visiting and choosing to stay in a big city. It's the big city and it should be like that kind of image.
I'm talking about living standards, after living in China for a year I moved back to Sweden the first couple of days I was in a shock mode. Living in China made me so careful and aware of certain things such as food safety and scamming. When I was in Sweden for the first day I questioned my parents, "Can I drink the tap water?" . It felt so weird drinking the tap water as I couldn't do that in China. I also thought "Everything is so clean and clear, it's amazing!" In China I had gotten used to the horrible smoggy air where one day I felt my eyes were frying the time I got out." Clean air makes a huge difference, clean air feels like seeing in 1080pHD whereas smoggy air feels like seeing in standard definition or 480p.

Everything has a certain standard in Sweden compared to China. I mean everything from housing quality to food. As simple as the feeling of opening the door in Sweden compared to China. In China many things are the cheapest material and you really notice it first when you travel to a developed country. In China public toilets and toilets in restaurants can be really like third world standard with no warm water and no soap and really dirty. There's no standard in China, the top is luxury Monaco level but the bottom can be India level. Developed countries in comparison have a high standard on almost everything, much more even.

It's not uncommon that public toilets look like this.





Scenes like this are not uncommon.







Small Chinese restaurant kitchens can look like this.



How wonder how many times I've eaten so called meat skewers that were in fact fat rolled in spices pretending to be meat. Always too many bones and fat in the food. Everyone trying to scam everyone (that's not their friends or family).

I've heard Chinese themselves say that living in China is like living your life on hard difficulty mode. With my experience I must say this is true.

Having skyscrapers, malls, restaurants, many choices of chocolate in the store doesn't make a country developed. People living from developing countries always have difficulties of understanding this, maybe because they've never experienced developed countries.

Here is a good article that sums up most most westerners experience of China. Do not get offended or say anything about hatred or racism because I must conclude that it's also my experiences and many people I've talked with while living in China. Even tough it's from 2009 it's still accurate today.

China: rude, dirty & annoying!

China may be growing to become the world's second largest economy, but living and working in this 'developing country' can be a nightmare. The country has many good things going for it. The food is delicious if you know where to eat, and it is a country steeped in history. But while a month long trip zipping from place to place may bring a little culture shock, and a few uncomfortable experiences, it is only after living here that one sees the real China.

The air

It's often said the grass isn't always greener on the other side, and with respect to China this is especially true. The first thing that hits you as you leave Beijing's modern international airport is the air. Today [15th October] the air is actually quite good. Blue skies hang over the city and the sun radiates a warm 22 degrees Celsius. Even the visibility is also excellent and the distant mountains can just be seen to the north of the capital.

But today is exceptional. Earlier this year the US Embassy set up its own air monitoring station atop its building in the east of Beijing and began to tweet its results via the micro-blogging site Twitter. The data disseminated by the US Embassy's twitterfeed @BeijingAir is in sharp contrast to that put out by China's official government body. According to the Beijing Environmental Protection Bureau, on 24th June 2009, the official air quality reading of the city measured "moderate". The Air Pollution Index (API) showed a reading of 69, the level of pollutants of 10 microns (PM10) from noon to noon. But on the same day, the US Embassy data showed the fine particles with a median diameter less than 2.5 microns (PM2.5) was at 184, sufficient to classify the air quality as "unhealthy" based on US Environmental Protection Agency standards.

On some days the air quality has been described as 'Hazardous'. And it is noticeable.Buildings even a few hundred metres away disappear into the smog and cars occasionally resort to using headlights in the middle of the day. However, Du Shaozhong, deputy director of Beijing's environment protection bureau, has dismissed the reading issued by the US Embassy. "Any attempts to question our figures with a single monitoring station are not authoritative enough," he said earlier this year.

China measures by a different standard than that used by the United States and set out by the World Health Organization. Readings of PM2.5 and PM10 particles give different results. In addition finer particles are more dangerous since they are less easily coughed up. Simon Hales of the Department of Public Health at University of Otago in Wellington, New Zealand, has warned that exposure to such concentrations could be very dangerous over the long term. "In healthy people, exposure to urban air pollution over a few hours or days is unlikely to have any noticeable health impact. However, the best indicator of health impacts is long term (annual average) exposure. Long term exposure causes increases in overall death rates which we can measure in epidemiological studies. Long term exposure to air pollution in many Asian cities, (with average levels of over 100 mcg/m3 PM10), probably causes health risks similar to those caused by smoking a pack of cigarettes a day."

Since June the air quality, as measured by the US Embassy has hit 'Hazardous' several times. Even in Los Angeles, well known for high pollution, the air quality only occasionally reaches a level considered to be 'Very Unhealthy'. Here in Beijing the air can be almost unbreathable! In fact according to the US government's website www.airnow.gov an AQI of between 301 & 500, or 'Hazardous', can cause significant aggravation of symptoms in susceptible persons as well as decreased exercise tolerance in healthy persons. Levels above 400 may even be life-threatening to ill and elderly persons.

The dirt

Despite armies of street cleaners China is incredibly dirty. Streets are often littered with discarded food, fruit, paper and other waste. Even in some supermarkets the grime seen on floors would shock most westerners. The most noticeable dirty habit of many Chinese people is spitting. Chinese men especially have the disgusting habit of making loud hawking sounds and spitting the contents of their actions on the road, pavement or wherever they happen to be. While it is mostly men, women too can be seen participating in this vulgar habit. Some people even spit on the bus, and onto the floors of restaurants and public toilets. Many Chinese people also seem to blow their noses in a most indiscreet and vulgar fashion. Handkerchiefs or tissues appear to be too much trouble. Instead people are often seen to use their thumb and forefinger to press their nose and loudly blow out the contents onto the street.
Restaurants also display a similar disregard to hygiene. It is not uncommon to see restaurant staff exit toilets without washing their hands. Food preparation surfaces as well as floors would shock any health inspector in the West. But here in China, cleanliness and hygiene, like common sense, are not all that common. The risks of eating out lessen if frequenting more expensive restaurants or outlets like the KFC or McDonalds, though the chance of food poisoning still exists. Even for those with a caste iron constitution it is advisable to take your own chopsticks.

In England, meat left unrefrigerated for 15 minutes is supposed to be thrown away as a food and safety measure. But in China it is not uncommon to see meat lying out on the counter and the vendor using bare hands to handle it. In summer, it often lies out in the sweltering heat all day. On streets people sell vegetables and fruit, sometimes just laid directly on the ground. They are seemingly oblivious to the fact these are the same streets upon which people spit and on which dogs defecate.

Littering is another apparently accepted habit. A recent visit to the Forbidden City in the heart of Beijing revealed how many were just unable to comprehend the use of a litter-bin. The vast courtyard leading up to the entrance of the Forbidden City was strewn with tissues, sunflower seed husks, apple cores, banana peel, orange peel, discarded corn cobs, plastic bottles and bags. My Chinese wife, who has lived in Britain many years, was also shocked at the scene which resembled not so much an ancient monument to China's past than a garbage dump.

Many Chinese get very defensive when their country is criticised. Patriotism is strong and there are often people seen wearing "I love China" T-shirts. But it appears they don't love their country enough to use a trash can or to refrain from painting the streets with their saliva.

If you've managed to survive the food prepared in unhygienic conditions and made it past crowds of spitting individuals, you will at some time need to use a public toilet. You will wish you never had. Chinese toilets are arguably the dirtiest and smelliest in the world. Even festival toilets are no match for what you'll meet in a Chinese lavatory. There are cultural differences that can and should be tolerated, and there are just plain disgusting habits that hark back to an era of primitiveness when mankind still walked on all fours. China has squat toilets and Western style toilets. The squat toilets are traditional and are a cultural difference. But the toilet habits of many Chinese are not. They are extraordinarily dirty. Sometimes one might think even a dog has cleaner toilet habits than many of them.

A toilet in the Chinese countryside is a harrowing experience and one you will unfortunately remember for the rest of your life. The smell from a Chinese toilet can permeate the air for some considerable distance. It is a stench that on entering may send one into retreat. What may greet you is a row of rectangular holes in the ground all strewn with lumps of stale faeces and used toilet paper. There are no doors on the stalls, sometimes, even no partitions between the holes. But it isn't just the toilets in the country that are filthy. Even toilets in big cities can be particularly unsavoury. It is not uncommon to enter a cubicle to find the previous occupant has not flushed. Perhaps such bad toilet habits are learnt whilst very young. Children can sometimes be seen urinating on the street. Many Chinese children have never worn a diaper or nappy. Instead, they have a big slit that, when they stoop down, opens and allows them to urinate or otherwise. In the last few months I have witnessed mothers allowing their young children to urinate on station platforms, streets in the heart of Qianmen and at tourist attractions, including the entrance to a Buddhist temple on the outskirts of Beijing.

Impoliteness

Rudeness and impoliteness are very common. No where is this better manifested than in the behaviour of many Chinese when it comes to queues. They either do not understand the concept of a queue, or they do understand but are too rude and selfish to respect queues. Whether at supermarket check-out counters, ATMs and train station ticket offices, there are always a few who will go straight to the front of the line and push you out of the way so they can be served first. At bus stops the crush seen as dozen of people attempt top force their way through the narrow door is like something seen at a cattle-market. Bag-straps snap, glasses are knocked from faces, mobile phones go flying and there is the occasional physical injury. Despite there being no room on the bus people still attempt to board sometimes becoming trapped in the powerful doors. Heads, arms and legs are often trapped in their vice-like jaws. On subway stations the sensible concept of allowing passengers to leave the train before attempting to board seems not to have crossed the minds of most Chinese.

The same display of disregard for others can be seen daily on the roads as cars and taxis manoeuvre for space. The blasting of horns is almost constant, even where it is obvious that no progress will be made from such actions. Greetings of "good day" and "good bye" are almost non-existent, unless one initiates. Even a "thank you" is rare.

Chinese people apparently care very much about losing their face. But such obsession in putting on a facade backfires. The government insists there is little or no promiscuity and actively bans websites it deems to be pornographic. Indeed its flawed Green Dam project was to weed out such sites. But while it talks about immoral western standards, its own streets are festooned with the same immorality. There are massage parlours with red lights, freely available pornographic magazines and a walk around the back-streets of Beijing will reveal countless adult shops openly displaying sex aids.

It can all be summed up as hypocrisy. The government claims its 'punishment' of Google was to stop the dissemination of pornographic images, yet its Chinese rival Baidu is left unaffected and sex shops remain untouched. The Chinese government, rather than acknowledging a problem, prefers to hide it so as "not to lose face". One could argue that the blocking of so many websites is about keeping down dissent and protests. But it is as much about not wanting to reveal the truth about what really exists in China.

Annoying

This all leads to how annoying it can be living in China. Chinese people may or may not know what really goes on in China, or elsewhere. Indeed they may not even care. Despite government worries over the Tiananmen Square massacre anniversary, few people look back with any real concern. Most are far more focused on making money. Even when it comes to the Internet, the restrictions affect very few Chinese. Most use the Internet for chatting to friends using Microsoft Messenger of the Chinese equivalent QQ. Online games are also popular with "Happy Farm" being one notable example [more about that in another post]. However, while they all happily play in their virtual worlds of stealing sheep and discussing how much they earn and when they're going to have a baby through Instant Messages, many expats are sat cursing at computer keyboards.

Using the Internet in China is at best slow, at worst a complete nightmare. If you're a newsjunky, journalist, or techhead it is intolerable. Virtually all the western social networks have been blocked for months, and it doesn't seem like it will get any better. Google services are particularly affected. Google Docs has been hit with outages and will not open in secure mode [https]. Google Sites, Picasa Web, Blogger and YouTube, all owned by Google, are completely inaccessible. Other blocked sites include Twitter, Facebook, Friendfeed and Scribd. Even news websites have been affected especially around National Day, as China celebrated 60 years since the founding of the Peoples' Republic.

Clicking a Google news link often leads to an error page and it all makes using the Internet extremely frustrating. As such one plays a continual game of cat and mouse trying to jump over or through the Great Firewall of China. Software that did work now no longer works and new versions fail after only a few days. For those just wishing to post messages or pictures on Facebook, Blogger and Twitter, there are email alternatives, but for most users it is the free use of the net that is required. Here, in the Peoples' Republic of China, that is not possible.

No country is perfect but China can, at times, be downright horrible. Soon after arriving another Brit told me that after a few weeks he just wanted to "go and punch somebody or something", such was his frustration. He's lasted nearly two years and says that while sometimes your days will be great at other times you'll wake up and end up crying in your cornflakes. It's not quite become that bad, but one year here will be more than enough.

There are some Chinese who are immaculately clean and who are very polite and honest. But sadly they appear to be a minority. For a country that is to become perhaps the second largest economy and with it bring greater influence to the world, this is indeed worrying. One hopes that the West might wake up and see what it is importing. The lead tainted toys, melamine adulterated milk and exploding tyres are only the half of it. If they export their dirty habits, double standards in business practice and tighter censorship controls we will all have something to worry about.
http://tvnewswatch.blogspot.se/2009/10/china-rude-dirty-annoying.html
 
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