Article by CT Johnson
2016 was a big year in the Aus-China business relationship. After several stop – starts, the historic Kidman property was finally sold to a group that included Chinese developer Shanghai CRED. To the dismay of New South Wales Premier Mike Baird, the Federal government blocked China’s State Grid from buying Ausgrid, thereby forcing NSW to accept a bid that was $3 billion lower. James Packer’s Crown Casino empire is still grappling with charges brought by the Chinese government against key employees.
At the same time, forces within China are influencing the Australian economy in ways that would have been unimaginable just 10 years ago. The emergence of 100 million middle-class Chinese consumers has impacted the availability of baby formula at Coles and Woolies. Xi Jinping’s ongoing anti-corruption campaign is changing the face of M&A activity, and China’s currency & stock and property booms and busts are creating uncertainty in Australia’s property and asset markets.
The importance of China to the Australian economy cannot be overstated. From Sydney property to Gold Coast tourism to Victorian dairy products to WA/SA premium food producers, Chinese investors and consumers are transforming markets across Australia.
Key themes
Below is a selection of key investment & business themes during 2016. We will be discussing these and other critical developments at our Aus-China Investment & Economic Roundup in Melbourne, Brisbane and Sydney hosted by HLB Mann Judd 31 Jan to 3 Feb 2017 (events elsewhere in Australia TBA)
Currency & capital controls
In response to the falling value of the renminbi, Chinese officials have begun enforcing currency controls more strictly than before. Virtually every conversation we’ve had with our Chinese colleagues, both here in Australia and in China itself, have eventually come around to the problem of getting money out of China. Although we’ve identified some good solutions to help our networks, it remains a big issue, and one that is spooking Australian investment bankers and property developers as Chinese cross border investments become more challenging to close.
From our discussions with investment bankers and lawyers, both here and in China, it appears that the Chinese government (particularly the State Administration on Foreign Exchange) is taking a harder look at the commercial justification for cross-border acquisitions. Thus, it is becoming more difficult for Chinese technology companies to buy foreign real estate assets, or Chinese agriculture companies to buy foreign automakers. Additionally, at least one source has told us that managers at Chinese SOEs are worried that deals that end up having bad economics (e.g. because the price paid was too high, or because the economic logic for the deal wasn’t strong) may be construed as evidence of corruption, or misuse of state assets. Because such evidence can result in criminal charges, this may be making Chinese executives more cautious about cross-border deals.
We have provided a selection of relevant articles at the end of this newsletter.
Mass consumption
Chinese consumers continue to evolve as a ‘mass market’, simultaneously fulfilling the dreams of many Western companies and dashing the hopes of others.
Perhaps the most ‘disruptive’ thing about Chinese consumers is their focus on e-commerce channels (e.g. Alibaba, Taobao, JD.com). Whereas even millennials (the heaviest users of e-commerce) in the West spend a paltry $2,000 a year online, the average annual spend by Alibaba Passport members is $45,000. As if to underline the significance of this trend, Alibaba’s November 11 Singles’ Day sale on racked up US$17.7 billion in sales (including 100,000 cars sold by the online retail giant). According to United Nations figures, that’s more than the annual GDP of 47% of the world’s countries.
Mass consumption is impacting on agri & food, tourism, and property markets in Australia (see more below) and elsewhere around the world that has a ‘critical mass’ of Chinese residents which in turn has attracted mainland Chinese visitors and investment flows.
Agri and food
We’ve heard five recurring themes in regard to Chinese interest in Australian agricultural and food-related assets:
- The focus is moving from agri investment to food commerce. The Kidman decision, the generally stronger feeling of nationalism among some Australian constituencies and the fractured nature of agricultural assets has dimmed the enthusiasm of some Chinese groups looking for cross-border acquisition targets. On the other hand, China’s desire for Australian food has, if anything, intensified and expanded to encompass new products (e.g. nuts and stonefruits), putting many Chinese buyers on the lookout for offtake agreements.
- The Chinese remain extremely interested in Australian food and agricultural products. A Bain & Co study labeled Australia the “hottest brand in China” for food products.
- Producers are critical of the Australian government’s lack of progress on the bureaucratic protocols needed to take advantage of the China Australia Free Trade Agreement (ChAFTA). I spoke with an official from one agricultural industry body who said that, contrary to helping their producers find and access new markets, Australian government bureaucrats were adept at finding excuses for not developing the necessary protocols.
- The Federal Agriculture Minister, Barnaby Joyce, is concerned about the “two-speed agricultural economy” in connection with China, whereby large corporate agribusinesses are realizing benefits from ChAFTA but smaller producers and family farms are not realizing those same benefits.
- Australian businesses continue to have a poor understanding of China, and how to extract value from the market. This is dramatically demonstrated by the fact that Australian milk, which 2/3 of Chinese consumers say they’d pay a 20% premium to buy, actually sells at a 38% discount to domestic Chinese brands. The difference is mostly attributable to poor understanding of marketing and distribution channels in China.
Tourism
Tourism continues to grow as more Chinese become wealthy enough to travel, and Chinese visitors broaden their areas of interest to include food-tourism (especially to vineyards) and adventure tourism.
The Australian tourism industry received a significant boost in December when the Chinese and Australian governments signed an “open skies” agreement that removed most of the restrictions on adding flights between the two countries.
Basis Point will issue its second annual report on Chinese tourism in Australia entitled “Golden Dragons; The Spending Habits Of Chinese Tourists In Australia” in February.
Property
The property finance market has stabilized somewhat compared to when we ran our Non-Bank Lending Conference in September. General market conditions remain the same – APRA’s speed brake continues to limit growth in the lending portfolios of the Big 4 Australian banks, creating opportunities for new lenders to come into the space. We are increasingly talking to more non-bank lenders (including foreign banks) who are entering the market. From discussions we’ve had with Treasury officials, including Treasurer Scott Morrison, it appears that the government views the emergence of these new players as a positive development and are unlikely to exert pressure on APRA to relax its requirements on the big banks.
We continue to hear worries about settlement risk in the property sector, especially in light of the difficulties Chinese buyers face in getting money out of China and of securing mortgages to finance their off-the-plan purchases, and we continue to get lots of calls from developers and marketers looking for solutions to help their customers. However, we have not seen large scale defaults on settlements, or a significant decrease in purchases by Chinese buyers. We get contradictory reports on slackening presales to the Chinese, but we’ve been unable to verify this.
We’re seeing the following rates in the market:
1st mortgage for an offshore (FIRB) individual resi buyer, 60% LVR – 5% to 12%
1st mortgage for development funding, 60-70% LVR/GVR – 14% to 20%
Mezzanine funding – 18% to 24%
Preferred equity – 20% to 40%
A selection of curated articles on the themes above (more details will be presented at our Investment and Economic Roundup)
China Currency Controls And Cross-Border M&A
China’s foreign investment ‘shopping spree’ over as Beijing moves to slash capital outflow
South China Morning Post, November 29, 2016
Beijing is embarking on a massive policy shift designed to stem capital flight by curbing outbound investment, sources say. Tighter control of overseas investment is likely to put an end to a trophy-asset shopping spree by well-connected companies such as Anbang Insurance and Dalian Wanda, with Beijing ready to cut the supply of foreign exchange for such deals.
Expatriating Money From China
LinkedIn, December 13, 2016
The more rigorous enforcement of Chinese currency regulations will persist for some time, and is likely to continue to cause disruption to a number of markets, especially in Australia. At the same time, there are solutions for getting monies out of China and it needn’t be a block to a deal or investment.
https://www.linkedin.com/pulse/getting-money-out-china-ct-johnson?published=t
China to clamp down on outbound M&A in war on capital flight
Financial Times, November 28, 2016
China is readying new restrictions on outbound foreign investment in an effort to curb capital outflows that are putting downward pressure on the renminbi and draining foreign exchange reserves, according to people who have seen a draft of the rules.
https://www.ft.com/content/2511fa56-b5f8-11e6-ba85-95d1533d9a62
Beijing warns mainland investors, M&A is not an excuse for capital flight
South China Morning Post, November 29, 2016
The biggest regulatory challenge facing Chinese companies wanting to snap up European assets isn’t political opposition from other governments, it’s getting the money out of the country in the first place, analysts say.
Getting Money Out of China: It’s Complicated, Part 1
China Law Blog, December 3, 2016
For the last few months, I alone have been averaging a call or email a day from someone inquiring about getting money out of China.
http://www.chinalawblog.com/2016/12/getting-money-out-of-china-its-complicated.html
Getting Money Out of China: It’s Complicated, Part 2
China Law Blog, December 4, 2016
In this post, I will discuss the three factors the Chinese government uses to allow funds to leave China to go to a Western company.
http://www.chinalawblog.com/2016/12/getting-money-out-of-china-its-complicated-part-2.html
Getting Money Out of China: It’s Complicated, Part 3
China Law Blog, December 5, 2016
In this post, I will examine the “benefit to China” element.
http://www.chinalawblog.com/2016/12/getting-money-out-of-china-its-complicated-part-3.html
Getting Money Out of China: It’s Complicated, Part 4
China Law Blog, December 8, 2016
In this post, part 4, I look at what is actually happening in China that is slowing down payments from China.
http://www.chinalawblog.com/2016/12/getting-money-out-of-china-its-complicated-part-4.html
Getting Money Out of China: It’s Complicated, Part 5
China Law Blog, December 12, 2016
In this part 5, I will look at what has historically been the primary reason why foreign companies face China payment problems: how they structure and write up their deal. This post will also discuss what you can do to increase your odds of getting paid.
http://www.chinalawblog.com/2016/12/getting-money-out-of-china-its-complicated-part-5.html
Foreign companies in China hit by new exchange controls
Financial Times, December 7, 2016
Several European companies in China have been unable to remit dividends abroad following the introduction of new exchange controls, the first indication that Chinese attempts to curb capital outflows are causing problems for foreign businesses.
https://www.ft.com/content/a6d0552a-bbc4-11e6-8b45-b8b81dd5d080
China stocks tumble as top regulator warns against ‘barbaric’ buyouts
Investing.com December 5, 2016/12/13
“You launch leveraged buy-outs using illegitimate money, turning from a stranger to a barbarian at the gate, and ultimately becoming a robber in the industry. That is unacceptable,” Liu Shiyu, chairman of the China Securities Regulatory Commission (CSRC) on Saturday, referring to a recent series of acquisitions which he described as “somewhat abnormal”.
China Unveils Crackdown On Companies Investing Overseas
CNBC.com November 29, 2016
Regulators require approval of outbound M&A deals in excess of $5 million.
http://www.cnbc.com/2016/11/29/china-unveils-crackdown-on-companies-investing-overseas.html
China forex regulator tightens controls to stem capital outflows – sources
Reuters, November 29, 2016
The State Administration of Foreign Exchange (SAFE) has begun vetting transfers abroad worth $5 million or more and is increasing scrutiny of major outbound deals, even those with prior approval, sources with knowledge of the new rules told Reuters.
http://www.reuters.com/article/uk-china-economy-capitalflows-idUSKBN13O1E2
Chinese Mass Consumption
8 Trends for Selling to Chinese Consumers in 2017
China Skinny, December 14, 2016
Package customization, niche online platforms, virtual reality and other trends for selling to Chinese consumers in 2017.
http://www.chinaskinny.com/blog/8-chinese-consumer-trends-2017/2/
China’s Biggest E-shoppers Spend US$45,000 A Year Online
Alizila, November 21, 2016
The average annual online spend among current Alibaba Passport members is about $45,000. In contrast, American’s millennials—defined as aged 18 to 34 with higher consumption than other demographic groups—spend about $2,000 a year online, according to a recent study conducted by BI Intelligence.
http://www.alizila.com/chinas-biggest-e-shoppers-spend-a-whopping-45000-a-year-online/
Top Baidu (China’s Google) Searches For 2016
China Skinny, December 12, 2016
The second ranked question asked of the search engine was “Can you recommend a cost-effective wall finish for a living room.” Seriously.
http://www.chinaskinny.com/blog/top-baidu-searches-2016/
Single’s Day Generates US$17.7 billion in sales for Alibaba
Business Insider, November 12, 2016
Chinese e-commerce giant Alibaba just shattered records for its annual Singles’ Day shopping frenzy. Shoppers spent a total of $17.7 billion during the 24-hour event, topping last year’s Singles’ Day by more than $3 billion.
http://www.businessinsider.com.au/singles-day-alibaba-sales-2016-11?r=US&IR=T
New ‘Two-Child Policy’ Driving Mini Baby Boom in China
Caixin, November 28, 2016
The number of children born in China this year is set to rise by 5.7% compared to 2015 as a result of the introduction of the country’s new two-child policy in 2015,
http://english.caixin.com/2016-11-28/101019931.html
Singles’ Day: Alibaba posts record sales as Chinese e-shoppers spend billions
ABC News , November 12, 2016
E-commerce giant Alibaba has posted a record 120.7 billion yuan ($23.39 billion) worth of sales on Friday during its Singles’ Day festival, one of the world’s busiest days for e-commerce.
http://www.abc.net.au/news/2016-11-12/alibaba-posts-record-singles-day-sales/8019900
How Alibaba Turned China’s Singles’ Day Into The World’s Biggest Shopping Bonanza
Forbes, November 11, 2016
Singles’ Day, which falls on November 11 in China, doesn’t really have a lot to do with being single. Since 2009, it has been touted by e-commerce company Alibaba as a 24-hour shopping day on which you’ll find thousands of international and local brands offering discounts on the firm’s marketplace and online stores.
Marks & Spencer To Shutter It’s Stores In China
Bloomberg, November 9, 2016
Marks & Spencer executives are asking themselves whatever happened to the Great Chinese Consumer as the British retailer moves to shutter its 10 stores in China.
https://www.bloomberg.com/gadfly/articles/2016-11-09/china-s-slippery-consumers
Microsoft plans to triple stores in Chinese mainland
ECNS, October 30, 2016
Microsoft Corp plans to triple the number of its franchised stores in China to 400 in two years, as the United States tech giant steps up efforts to boost the sales of its consumer electronics products.
http://www.ecns.cn/business/2016/10-30/232128.shtml
Alibaba Sold 100,000 Vehicles Online In Just 24 Hours
Value Walk, November 14, 2016
Alibaba’s platforms, including Tmall, AliExpress, and Taobao, which together make up the largest e-commerce services worldwide, are selling vehicles also, like General Motors’ Cadillac, according to SCMP. On Singles’ Day, the platform set a new record by selling 100,000 vehicles online in just 24 hours.
http://www.valuewalk.com/2016/11/24-hours-alibaba-sells-100000-vehicles/
Trump’s Vow to Crack Down on China Set to Run Into Complex Reality
Bloomberg, November 11, 2016
“I expect him to come out of the chute criticizing China a bunch and demanding improvement in China trade policy,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies in Washington. “But he’s going to get briefed by his staff in the White House and come face to face with new data that don’t accord with his current view.”
China’s high-earning consumers to surge by 2030: report
Shanghai Daily, November 5, 2016
The number of people earning more than 10,000 U.S. dollars per year is expected to grow to around 480 million by 2030, from around 132 million today, according to research by the Economist Intelligence Unit (EIU), a think tank with the Economist.
Agriculture & Food
Bellamy’s shares suspended amid fears on China trade
Financial Review, December 14, 2016
Speculation is rife around the nature of Bellamy’s Australia problems following its suspension from trade today, with sources saying the organic baby food maker has underestimated the importance and power of the “Daigou trade”.
Benefits of China trade agreement lost on Australian farmers still waiting for market access
ABC Rural, November 25, 2016
“Nothing is going to happen until the people who run our country say ‘we think it’s really important for us to sell food to China’.”
“Alligator pears” (avocados) are China’s newest superfruit
Quartz December 4, 2016
“When you buy it, you are buying the feeling of luxury.”
http://qz.com/851688/alligator-pears-are-chinas-newest-superfruit/
The Great Underperformance of Imported Milk in China
China Skinny, November 11, 2016
For all the hype, and a huge preference among Chinese consumers for milks sourced offshore, foreign dairy products sell for 38% less than domestic Chinese products due to poor understanding of the local market.
http://www.chinaskinny.com/blog/infographic-china-dairy/
How life for milk’s market darling Bellamy’s turned sour
The Sydney Morning Herald, December 10, 2016
There have been few bigger darlings of the Australian sharemarket than Bellamy’s. But the fairytale ride ended last week after Bellamy’s Australia announced a “business update” that wiped more than $500 million from the company’s share price in a matter of minutes.
Freedom Foods still sees value in dairy formula and China
Queensland Country Life, December 14, 2016
Just when the nutritional dairy powder market looks to be turning a little sour for some, the diverse food and beverage business Freedom Foods is expanding its footprint.
Domestic Beers In China Face Headwinds While Imported Beers Soar
The Drinks Business, November 21, 2016
Imported beers are expected to reap frothier profits in China in the coming years while domestic beers have suffered 25 straight months of decline since July 2014.
White wines threaten the dominance of red in the China export channel
The Shout, November 8, 2016
Australian wineries are forecasting growth from white varietals in China, threatening the traditional dominance of red wine in the marketplace.
Selling Australia into the China dream
Financial Review, October 25, 2016
Every Australian farmer and food producer by now appreciates the massive potential of the China market – in theory. In practice, it’s a lot more difficult, as well as commercially nerve-racking, for most to figure out how best to realise that potential.
Chinese market to boost Aussie stonefruit industry
ABC Rural, October 25, 2016
Australian growers will start sending their nectarines to China for the first time in the coming weeks, as part of a protocol struck between the Department of Agriculture and the Chinese government in May. The protocol focuses mainly on pest monitoring and management and has made China the first new market to open up to the stonefruit industry in about two decades.
http://www.abc.net.au/news/2016-10-25/australian-stonefruit-nectarines-exports-to-china/7963200
Nectarines the latest Aussie success story in China
Australian Ministry Of Agriculture, November 15, 2016
“Chinese consumers are already developing a growing taste for Australian oranges, mandarins, table grapes and cherries. I’m very pleased to add Australian nectarines to that growing list.”
http://minister.agriculture.gov.au/hartsuyker/Pages/Media-Releases/nectarines-to-china.aspx
Australian infant formula maker banned in China
Financial Review, November 15, 2016
Australia and China are once again at loggerheads over dairy exports, after Beijing banned Victorian infant formula maker Vilpus Dairy from selling its products on the mainland.
http://www.afr.com/news/world/asia/australian-infant-formula-maker-banned-in-china-20161115-gsprpq
Bill McDonald ditches dairy to return to coal mining
The Australian, December 6, 2016
As a barometer of the booming dairy-exports-to-China market, a decision by former mining services magnate Bill McDonald to quit his fledgling infant-formula empire, Camperdown Dairy International, to return to coalmining had all the early warning signs of a brewing storm.
Qantas set to fly 50,000 litres of fresh milk a week from Hobart to China
The Australian, November 25, 2016
More than 50,000 litres of fresh milk a week will be flown by Qantas from Hobart to China if a freight deal between VAN Dairy and the airline gets off the ground.
Investment potential of agriculture ‘untapped’ in Australia: BetaShares
Professional Planner, December 8, 2016
Agriculture is a key global sector with the potential to enjoy solid long-term growth as the quantity of food demanded worldwide increases.
Treasurer approves Gina Rinehart-led bid for Kidman cattle stations
The Australian, December 9, 2016
A Gina Rinehart-led takeover offer for S. Kidman & Co, Australia’s largest landholder, has been waved through by Treasurer Scott Morrison, bringing an end to the long-running sale saga. Ms Rinehart teamed up with Shanghai CRED Real Estate Stock Co to make a $365 million bid in October after a Shanghai Pengxin-led consortium’s bid for the cattle stations was blocked on national interest grounds in April. The offer was later raised to $386.5 million after a rival bid was lodged by some of the country’s wealthiest farming families.
The Hottest Brand in China Is Australia
Bain & Co, November 15, 2016
When Bain & Company recently interviewed 2,000 cross-border shoppers in China, they were 1.6 times more likely to associate Australia with health and nutrition than the US, Germany, Japan and South Korea, and 2.5 times more likely to associate Australia with words related to “natural”.
http://www.bain.com/publications/articles/the-hottest-brand-in-china-is-australia.aspx
Tourism
Chinese knowledge of Australian wine boosting tourist numbers, winemakers say
ABC News, November 19, 2016
Winemakers believe the increasing sales both at home and abroad are strongly influenced by the relatively weaker Australian dollar, but they are quick to add it is also due to a growing awareness among Chinese consumers about Australia’s many wine regions.
Chinese tourists venture off the beaten path
Sydney Morning Herald, November 16, 2016
Destinations outside Sydney and Melbourne are attracting a new breed of adventurous Chinese visitor willing to explore regional areas, the Choice Hotels franchise maintains.
Mainlanders in quest for unique experience from overseas travel, as shopping loses appeal
South China Morning Post, November 8, 2016
A study from market research company GFK revealed that long-time favourite shopping destinations like Hong Kong and Macau are losing appeal. As more Chinese come to value the experience of the trip itself, it is the experience of being abroad that has become the ultimate luxury good rather than a new handbag or pair of shoes.
Australia, China agree to open aviation market
China Daily, December 12, 2016
Australian and Chinese governments have settled arrangement to open aviation market between the two countries, Australian Minister for Infrastructure and Transport Darren Chester and Minister for Trade, Tourism and Investment Steven Ciobo said in a statement on Sunday.
http://www.chinadaily.com.cn/business/2016-12/05/content_27569476.htm
First regular passenger service between China and South Australia cleared for takeoff
Daily Mail, December 13, 2016
The South Australian government is set for a huge financial windfall when the first regular direct flight from China ands on Tuesday. The new route which will see up to 120,000 extra visitors enter South Australia.
Victorian tourism: State cashes in Australia’s market growth
Herald Sun, December 7, 2016
“Chinese visitation and expenditure is a key pillar of Victoria’s great prosperity,” Tourism and Major Events Minister John Eren said. “It accounts for a third of total visitor expenditure in Victoria, and it’s more lucrative than the next six markets combined.”
Property & Property Finance
Residential Mortgage Financing Options for Offshore Buyers
Development Finance Partners, November 29, 2016
The Big Four Australian bank’s retreat from the offshore residential mortgage market has left many foreign buyers searching for financing options. Here are three.
http://www.dfpartners.com.au/residential-mortgage-financing-options-for-offshore-buyers/
Chinese property investors may be forced to sell as bank finance dries up
ABC, November 28, 2016
Thousands of Chinese property investors who bought apartments in Australia are still scrambling to save their investments, six months on from a bank clampdown on foreign lending.
CBA, NAB, Westpac turning up heat on property buyers
Financial Review, December 5, 2016
Commonwealth Bank of Australia, the nation’s largest mortgage lender, National Australia Bank and Westpac are turning up the heat on property buyers by cracking down on loopholes or cranking up variable and fixed term interest rates.
5 Tips For Better Understanding Peer-To-Peer Property Lending In Australia
The Urban Developer, December 6, 2016
Keep an eye on security and be reasonable about the interest rate and you won’t go far wrong.
https://www.theurbandeveloper.com/5-tips-better-understanding-peer-peer-property-lending-australia/
Australian Home Loans Decline in October; Investment Lending Continues Higher
Economic Calendar, December 9, 2016
Home financing in Australia declined less than expected in October, while investment lending continued to grow, painting a mixed picture of domestic real estate.
Lenders slash property loans by up to 155 basis points
Financial Review, December 9, 2016
Lenders are slashing borrowing costs by up to 155 basis points for some property borrowers and increasing rates for others as they attempt to build and protect market share in volatile markets, analysis of lending rates reveals.
Australia Investment Lending for Homes fell from previous 4.6% to 0.7% in October
FX Street, December 9, 2016
Aussie property market becoming even more overvalued
Yahoo Finance, December 6, 2016
Home values are estimated to be around 8.4 percent overvalued, with property in Melbourne the most overvalued nationwide according to the CoreLogic-Moody’s Home Value Index Forecast.
Aussies drive property boom amid ‘marginal’ foreign effect
The Australian, December 5, 2016
Australia’s property price boom is being driven by a lack of new housing coming on to the market and unprecedented demand from local buyers rather than ramped-up interest from foreign investors.
Overseas buyers not behind Australian property price boom: report
Realestate.com.au, December 6, 2016
The Foreign Investment and Residential Property Price Growth paper, based on five years of research up to mid-2015, states that overseas buyers had only accounted for “a small proportion of the increase in property prices” in Australia in recent years.
http://www.realestate.com.au/news/overseas-buyers-not-behind-australian-property-price-boom-report/
Gaw Capital Acquires Australian Property, Plans To Convert To Student Dorms
China Money Network, December 6, 2016
Hong Kong-based real estate private equity firm Gaw Capital Partners has purchased an office building in Perth, Australia, with the aim to convert the building into student dormitories, the firm announced today without disclosing financial details.
Housing markets to remain strong, but the bubble is inflating
Sydney Morning Herald, December 7, 2016
Housing markets will retain their buoyancy for at least another year, but concerns of price bubbles loom large, according to the latest Australian Property Institute’s Property Directions Survey.
Foreigners pile back into Australian property
Shanghai Daily, December 8, 2016
Australia’s “spring-selling” real estate season is seeing a defiant return of Chinese buyers, undaunted by lending restrictions aimed at curbing their interest in the country’s sky-rocketing housing market.
New regulatory regime not enough to deter foreign investment into Australia
The Investor, December 13, 2016
In response to a spike in offshore demand for Australian property assets in the past three years, federal and state regulators have tightened regulations and increased costs for non-resident investors. But the new regime is unlikely to significantly deter foreign investors from seeking real estate assets in Australia, according to JLL.
China’s Poly Australia to appoint agents as part of Sydney CBD shake-up
The Australian, December 9 2016
Poly Australia, the local arm of Chinese developer Poly Real Estate, is looking to appoint agents next year for the lease of its planned new office tower in the Sydney CBD that is about to shake up the city’s office market.
Please click here for the link to our Investment & Economic Roundup 2016/Forecasts for 2017