Tuesday 14 June 2011

Chinese Mount Global Homebuying Spree as Governments Squeeze Local Markets

http://www.bloomberg.com/news/2011-06-13/chinese-mount-global-homebuying-spree-as-governments-squeeze-local-markets.html

Investors are grabbing everything from $68,000 foreclosed condominiums in Florida to $2 million beachfront villas in Vietnam, a buying spree fueled by China’s surging wealth that mirrors the country’s expanding influence in markets for gold, oil and food

SS says

It smells like we are getting close to a TOP
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Resort developers often sell individual villas, many before they’re completed, with guaranteed returns over a specified number of years. A buyer can stay at the property and use the resort’s amenities free of charge for a certain number of days a year, with the developer or an outside company renting it out for the owner at other times.

SS says

This sounds like Dubai to me.

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“If the son or daughter doesn’t have enough money, what happens is the parents or grandparents from China will help them fund the deal,” he said. “In most places, it’s all cash. They just transfer the money, like, boom.”


SS says

Boom - sounds like over exuberance.

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The Chinese are usually in a hurry when they shop, often buying at least two houses per visit, paying cash because they don’t have time to take out a mortgage, Chan said.
“They don’t mind spending $1 million or $2 million here,”she said. “But they aren’t building. Last year, a group came to start a project. They looked around, did calculations and decided it’s not really worth the effort. Now in China, they can make more money.”

SS says

It smells like a bubble here.

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“Our sales are determined by the Chinese,” said Harry Triguboff, founder and managing director of Sydney-based Meriton, which gets about 15 percent of its sales from Chinese buyers.

SS says

Typical Aussie dependance on Chinese.

This will come and bite Australia real bad.

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