Illegal foreign buyers on notice, 6 homes purchased illegally to be sold, a further 462 under investigation

Six homes brought illegally by foreigners will be sold and a further 462 sales are under investigation with the Treasurer, Joe Hockey, telling Australians more will be forced to sell soon.

In May, we reported the enforcement of legislation surrounding real estate sales to foreigners would be transferred to the Australian Tax Office and harsher penalties be introduced for both foreigners who flout the laws and real estate agents, developers and third parties assisting in the transaction. (“Passive foreign investment watchdog relieved of enforcement duties“)

Foreign buyers are free to purchase new homes that increase housing stock in Australia, but are banned from purchasing existing homes. In recent years, a flood of foreigners have been breaking the laws with little repercussions from the overwhelmed and under resourced, Foreign Investment Review Board.

Under the new legislation suggested to be introduced on the 1st of November 2015, owners who have illegally purchased property in Australia will be given an government amnesty and will not be prosecuted, if they voluntarily come forward prior to the 1st November. The announcement of the 6 homes to be sold over the weekend fall under this amnesty.

In just three months, the Australian Tax Office, The Foreign Investment Review Board, the Department of Immigration and AUSTRAC (The Australian Transaction Reports and Analysis Center with regulatory responsibility for anti-money laundering and counter-terrorism financing) have been busy uncovering some 462 illegal transactions.

Fears are growing that the army of foreigner buyers are destabilising the Australian economy, creating troubling housing bubbles in Sydney and Melbourne. Those who are buying existing stock, are pushing up prices at break neck speed and pricing Australian’s out of the market.

Foreigners, predominately Chinese, like the Sydney and Melbourne property markets with apartments and high-rise living akin to their home country. The latest CoreLogic RP-Data revealed Melbourne home prices shot up 4.9 per cent in just the single month of July. Just as dangerous, Sydney home prices surged 3.3 percent for the month.

The Sydney and Melbourne property bubbles have regulators struggling to gain control. The banking regulator has forced banks to slow down their residential investor lending, re-weight their mortgage books and increase loss absorbing capital to help protect the banks in the downturn.

ANZ was the last bank forced to increase capital, announcing on Thursday its intention to raise 2.5 billion from institutional shareholders and a further $500 million from retail shareholders. The bank’s share price was smashed on Friday, when it resumed trading, plunging 8.5 percent in morning trade to finish the day 7.1 per cent down.

While the capital raising won’t be a surprise for our readers (‘Banking regulator announces tighter capital adequacy requirements for residential mortgages), the move by ANZ appeared to catch investors off-guard sending the Australian Bourse down 2.4 per cent on Friday, the biggest fall since May 2012.

All eyes are now on the Commonwealth Bank of Australia who is set to report this week. Analysts suggest the bank is falling behind its peers in terms of capital buffers and could be forced this week to raise $5 billion, some suggesting as much as $7 billion.

» Investigations into foreign investors allegedly illegally buying Australian homes more than doubles – The ABC, 8th August 2015.
» Six foreign-owned properties to sell with more to come: Hockey – The Australian Financial Review, 9th August 2015.
» CBA tipped to raise capital amid $9.1b full-year profit forecast – The Sydney Morning Herald, 9th August 2015.
» Home prices surge, Melbourne and Sydney lead gains again – The ABC, 3rd August 2015.


  1. This is so called “crackdown” is nothing more than a government smoke screen to give the Australian people the impression that the government is doing something about the foreign buy up of Australian property.

    The reality is, the vast majority of dirty money from China will be welcomed by open arms by the banks, real estate industry, construction industry and of course the state governments who are making a killing on the stamp duty.

    Laws are only good as they are enforced, and given the pathetic track record of the FIRB, I am not holding breath.

  2. Forcing the illegal buyers to sell at the top of the market will be doing them a favour and cause a drop in the markets which will hurt the genuine buyers. Another case of unintended consequences from a Larry Curly & Mo government.

  3. Sloppy is making a big song and dance about this so that he can dodge making changes to Negative Gearing.

  4. “Fears are growing that the army of foreigner buyers are destabilising the Australian economy”

    If this statement doesn’t show how gutless and emasculated our impotent ruling class are. FFS, just ban foreign ownership of residential property and the fear need go no further, instead of cowering in the corner like a frightened little politican afraid to take a stand.

    Unfortunately, I think Master Yoda is correct in Comment #1.

  5. I can see this finishing with a lot of empty foreign owned apartments being used to park dirty cash. Actually, isn’t that happening now?

  6. @Master Yoda: Spot on!
    Who creates the policy to push up house prices with foreign investment? Who won’t deal with negative gearing?

    Another Hockey Sunday media blustering session to take people’s focus off of the ministers’ misuse of public funds under the guise of carrying out “government duties”.

    Oh and he’s promising tax cuts for the next election: Liberals buying votes again. I don’t think anyone will fall for their chicanery and subterfuge any more. They’re out!

  7. One Chinese Corporation has just purchased $2.5 billion of commercial property in Sydney including Rio Tinto & Deutsche Bank HO. It hopes to continue massive developments in apartments and hotels etc throughout Aust. to sell directly to Chinese buyers wanting to invest in OZ. Excellent, can’t wait to go shopping in giant empty malls and visit ghost cities. The government has obviously lost control of foreign investment and the money laundering that goes with it.

  8. The China Investment Corp (CIC) mentioned by In Vino Veritas above is a governmental corporation and has almost unlimited funds to buy up Australia and the world. We look like going from China’s Quarry to part of the New Socialist Empire. Not a pleasant thought, ask any local in Tibet. One of their many development projects will be a triple tower skyscraper on the Gold Coast comprising of two apartment blocks and a hotel all to be marketed only to mainland Chinese. These types of development are parasitic as they use local infrastructure but all profits remain in their homeland as everything is prepaid including meals and tours etc. This is a planned economic invasion which needs to be stopped now before it overwhelms our tiny population.

  9. Affluence will kill the communist party sooner or later. That’s a revolution. What that does to the local economy or the world is anyone’s guess.

    The only two empires that stand out are Rome and the U.S. Genuine attempts in human history to mix human decency with economic success.


    and so spruiking continues…..

    Let’s see, a billion dollar company rent’s a property off of a retired doctor…..

    that’s all I need to know right there. Huge well managed companies will use their cash to:
    A: grow their business
    b: pay out dividends and
    c: pay out massive management bonuses

    sounds good to me…while the doctor

    gets 5% ROI, ONLY when the building is leased
    has to pay for all repairs, maintenance etc
    has a fixed asset that can not be moved

    that sounds rather risky…….

    Humans, and Australian’s in particular, are so gullible, it’s sad. To blow $10M and only get 5% return is crazy……. Want some perspective on that?

    Branson started virgin blue with only AU$10M…………

  11. The CBA made $1 million per hour profit last year ($9 billion) which is an obscene amount considering the size of the Australian market. As with Iceland prior to its crash the Australian financial sector is to large for the economy with 4 of its banks in the top 25 biggest global banks. The extra $5 billion buffer required by APRA will be chicken feed when the RE bubble bursts hence the BAIL IN provisions adopted by the Government in the Brisbane G20 meeting.

  12. @ Bubby comment #13
    Wake up and smell the ashes… I like that. That’s the trouble with Ozzie Mum and Dad investors – instead of smelling the roses when the vegetation is still green and able to be pruned, the saps only wake up to smell the ashes after the fire has ripped through and devastated the countryside. Great analogy.

  13. @Bubby Why do you feel sorry for them?
    It’s these kind a people who keep saying “safe as a house”, “but it’s different here” and so on and so forth.
    It’s a simple and long overdue lesson from economics if something goes up and up and up then eventually it has to come down – right?. This is the concept that so many people in Australia will have to come to terms with eventually, as everywhere else where the only vehicle to the wealth was through speculative investment in property.
    Houses are necessity where one can provide safe environment and raise their children thus should be affordable not prohibitively expensive.
    If you want to build this country, invest in the legitimate business, one that doesn’t relay on tax payer sponsorship (negative gearing,and many other rotten property investment incentives) this would also help to reduce our ever growing trade deficit.
    Unfortunately Australia hit the new low, there isn’t much left here we make and can offer to the rest of the World so we promote our latest “export offering” namely our properties to the highest foreigner bidder.

  14. I gave my daughter a calculator the other day, mind you she is not even two years old. She came back and said daddy why are houses this expensive, then she blew a bubble. Pity none of these people, they borrow well beyond their means. Tomorrow, next month, next year,,,just wait and watch it pop. Who cares if they are paying 2 percent interest on your savings, it will be a gift when it pops. How stupid are people…my my you really have to shake your head at this one.

  15. I’ve been watching the market for the last 5 years and decided to buy a business and create wealth threw it. Now, I’m sick of renting and need to provide a home for my kids and wife. I was reluctant to purchase a house but compared to Europe (where I’m originally from) I can tell you that we are far before shit will happen over here ! Houses are over 300.000 euros and basic flat around 150.000eur, families are barely making 30.000eur/year if lucky, criminality is high, economy is really bad, population is stressed and disgusted but still people buying as they need a roof there. So I came up with the resolution that we are still not too bad here, probably need to drive and live further away to get something good for value. At the end of the day, the circus will keep going until a revolution happen with is unlikely as australian says “oh, don’t worry, should be fine” spirit.

  16. @Tomasz
    No I don’t feel sorry for them, quite the opposite. What I meant was sorry as in when you inform someone they are mistaken or wrong and the word sorry appears at the beginning of the sentence.. A lot of them are still without a clue of what is happening so they’re putting heat on property managers over their own bad choices.

    Roxby Downs median prices (3br house)
    2012 $430k
    2014 $327k
    2015 ???

    Its quite laughable to do a custom Google search and restrict the date range to be in the first half of 2012 when all the speculators were quite smug and sure of themselves.

    Article from Australian Property Investor Magazine where Lauren Cross says, “logic tells me Roxby Downs will almost definitely take off.”

    Article from Hot Property News which claims to be Property Investing Research & Insights for Investors who want the informed edge.
    Boom Towns That Spin Off Scorching Cashflow Returns. An exclusive interview with Flynn De Freitas (May 2012)
    Flynn De Freitas on Roxby Downs, “prices will probably rise another 20% over the year – so investors are looking at 20-30% gains in the next year.”

    Article from Westpac Bank:
    “Roxby Downs can be an appealing location for investors as the local mining industry is generating strong growth and healthy rental demand.”

    Article from Real Estate Review:
    Greg Moulton (president of REISA) and Ted Piteo (former president of REISA) both making predictions for growth in Roxby Downs.

    Article from Property Observer “Property investors need not fear mining companies’ tantrums. Terry Ryder”:

  17. Hey everyone. Why don’t we all write to these articles and tell them we cannot afford to buy a house on minimum wage because of their one sided and obviously biased opinions and that we as taxpayers are subsidizing their ideas and their increase in wealth and not the economy? Secondly we should put pressure on politicians that they are also responsible. Search the Internet on Politicians emails and write to them. Spread the word.

  18. @19

    Great retrospective media research Bubby. I am in ADL and I remember the day in 2012 when the Olympic Dam project was dumped, as it was the same day I signed papers at my employer confirming redundancy. It was like a death in the family here in ADL when the project was shelved ! You could almost here the groans of investors whom had sunk substantial money into property in those towns realising that they could be in deep s*%t ! Not that I take pleasure from it, but these property spruikers like in the article are a joke, but people followed them. I cannot keep wondering how many of those investors in places in Roxby Downs (and those in WA/QLD) also have other properties in the cities, that are now in jeopardy, which maybe even their own primary residence. And it makes me realise once more it does not take much for that stack of cards to fall.

  19. @13. Bubby

    People who invested in taxis expected to government to intervene when Uber started gaining traction. Now people are actually getting used to government oversight in all our ‘free’ markets.

  20. @18. PerthPigeon, I’m familiar with Italy where now the government is targeting those with investment houses, and making them pay a truckload of tax for them, wiping out any profits and making them kick themselves for buying them in the first place. Now prices are deflating, no one wants to sell, hoping for better days around the corner.

    I’m betting the government here will do exactly the same thing once the market flattens out. It’s where the numbers are.

  21. Honestly, I really wish Melbourne property was as exposed to the mining industry as WA. I live in a DINK household (double income, no kids) with both incomes being well above average and we STILL can’t afford to buy a house large enough to have kids in an area close enough to public transport to get to work. I don’t understand what we’re doing wrong but this craziness needs to stop! My parents did this on one income for christ sake.

    I can’t wait for a recession and to see the jobless rate soar. Stop this property investing nonsense.

  22. Chockolate, I totally agree with you.
    The powers that be, still have a few trump cards to pull yet!
    My bet is they’ll wait until they have good numbers of people with investment properties,then when the sheep
    least expect it and the tax revenue depletes further they can raise the punitive taxes.
    1. Re-introduce the death tax
    2. Up CGT to 50%
    3. Scrap negative gearing for anyone with assets over a certain $$$ value.

    Any of these options would certainly be a sure fire way to return some of the massive deficit. What may happen is going to be very interesting indeed. What a mess!

  23. @27
    Yes it is, but that doesn’t bother the big 4 banks in Australia, because even if the Australian economy tanks, and I believe it is (eg. mounting job losses, no more job security etc), there is a massive bail out fund (thanks to the Aussie taxpayer), that will pay for the mistakes of the banks.

    The banks cannot lose, no matter what happens, make no illusions banks and the big end of town are running the show, not these puppet politicians.

  24. I cannot see why? do we all bother with the topic of foreign investment so much. Not only is it obvious how too little government action is too late, it also shows all politicians willingness to pass laws that are too vague without serious thought to the consequences. This alone is proof they are corrupt and incompetent. A well thought out plan for foreign investment would have only allowed the purchase of new houses and not established houses. Politicians knew from the beginning this mess was going to happen. They wanted and allowed the market to flood with fresh money so not only do their own personal properties go up in value, they pay back the vested interests that brought them to power and it is popular with the electorate. It was all deliberately planned. Just look at the number of houses under investigation. Politicians allowed this situation to ‘get out of control’. Whatever politicians do from now on is only damage control and not a stop gap. They will publicly close some loopholes today but they will secretly open new ones elsewhere, just like they secretly created the loopholes that are responsible for today’s mess. Then there is the continuing topic of foreign investment generally. It seems all too convenient. Why would we all care about foreign investors buying luxury homes? Houses that are way out of 90% of all Australians price range. The real culprit for ever increasing house prices are investors, specifically those who are allowed to use their superannuation to buy a new or used house so as to rent out at taxpayers expense. Very little is mentioned of the fact that investors are allowed to buy established house which makes up of over 90% per cent of sales. Why? This sector does not produce anything. Using negative gearing for new homes only would have given the building industry a strong and stables footing to produce or make something. Instead it is driving up house prices that affect over 90% of all Australians. WAKE UP!! everyone. Don’t be fooled by such newspaper articles deliberately meant to divert attention away from where politicians interests are and that is allowing Aussie investors and negative gearing to continue to destroy the great Aussie dream of owning your own house. DONT BE SHEEP!!

  25. @ Theo

    Reminds me of the story of the Banker, the Worker and the Immigrant sitting at a table with 20 cookies. The Banker takes 19 cookies and warns the Worker to watch out because the Immigrant is going to take away his cookie.

  26. @26. Max D. Leverage,

    The pollies are in an excellent position to shift their properties before any policy is introduced. It’s not insider trading I don’t believe, because it’s not the stock market.

  27. Max, I beg to differ about house prices deflating in 1987. It might have happened very briefly, but after the stock market crash, people poured their money into real estate seeing it as safer than shares. The resulting housing boom coincided with the highest interest rates in Australian history.

  28. md, Yes the 1987 housing crash was short lived because the Hawke Government revived it with a “First home owners grant”.

    Unfortunately it’s very different this time as real estate prices now depend more on what some wholesale lender in New York or London is willing to lend to our banks. Housing prices in Australia are dependant on debt growth, and if there is no credit out there house prices will begin to fall.

  29. The Queensland state government is now offering a $15000 “Great Start Grant” to first home buyers. The ABC news had a story about the pickup in demand for new housing by first time buyers in the outer suburbs (Springfield etc). Builders were complaining about the lack of supply of land. Go figure.

    The politicians in Queensland know that the economy is tanking (it has been for some time), and they have no new ideas.

    Anna Bligh and Campbell Newman embarked on boondoggles, such as several road tunnels that wiped out a significant amount of investors savings, and have continued down that path with multiple casino developments. Apparently Queensland is going to become the new Macau.

    In the not too distant future the chickens will be coming home to roost.

  30. @ 37

    There has been some falls in the states exposed to mining.

    It seem business as usual for investors in Sydney and Melbourne.

    In my area in Brisbane the last lost of homes that have sold have all gone to investors as the “For Lease” sign comes out straight after they take the “Sold” sign away.

    I actually get the feeling that if IR and NG stay the same the eastern sate market will go higher still.

  31. @ Patrick: Folks…it’s started.
    Yes, number of west/outer Sydney properties for sale are steadily rising since end July,2015.

  32. Looking at Albion in Brisbane’s inner north, there are currently a whopping 7 new complexes of apartments being built. I mean, just where are the jobs for the people who are going to live in them?

    As if it’s ISIS we should be concerned about…

  33. Australia will save the world, people with houses will save millions in poverty and the rest of the world will try harder to get here by boat. I even heard that all the elite want to buy here cause they can’t make money anywhere, if I only bought a house. Who needs to watch the comedy channel. Who gives a shit when it pops…most of these tools have 30 year mortgages, they wouldn’t know how to get out, just sit back and watch the joke unfold.

  34. Benjamin Disraeli. “Governments do not govern,but merely control the machinery of the government,being themselves controlled by the hidden hand.” Thomas Jefferson. “The banks will deprive the people of all property,until their children wake up homeless on the continent their fathers conquered.”

  35. Australian shares are down to lowest level in 6 years. Plunged 4.1% today, the largest single day drop since the GFC.

    On the news they’re already talking up another rate cut from the RBA, which of course will do nothing more than put more heat on the already overheated property market.

  36. When they keep dropping interest rates, it’s basically an admission that the government is panicking about the state of the economy, so they keep drop interest rates to get the people to spend more money they DON’T HAVE.

    The problem is, fewer people have secure full time jobs to get into more debt in the first place, so they only thing more interest rate cuts will do, is just further inflate in the already insane property bubble, which means more and more personal debt.

    Another problem is that there is no confidence in the economy, with job security being a thing of the past, those that are lucky enough to still have a job, are not going to spend as much money as they are justifiably worried, about when their turn is next to get laid off.

    The Australian economy is a like a lost ship at sea sailing without a rudder, ie. it has no direction and does not know where its headed.

  37. Master Yoda, The great fear of DEFLATION is what terrifies the RBA and the banks/government. They know if their assets lose value the con game is up and everybody will see the emperor has no clothes. Our fiat monetary system depends on ever increasing debt and rising asset prices. In actual fact asset deflation is the cure rather than the disease to get the economy back into balance. You are right, like the Marie Celeste, our country is drifting around on an ocean of self serving ignorance just waiting for the next storm.

  38. The problem with cutting rates is that it 100% stimulates the real estate industry and encourages more speculation by property speculators with the hope that some of that stimulation trickles through to spending elsewhere by people with mortgages.

  39. Morpheous … on mate. It’s a con game and people are being mislead and mainly to benefit the elites. They control the money and its its been going on for centuries…..people are asleep

  40. That’s the whole idea, Bubby. As long as people feel wealthy, they’ll spend, and that’s what the government is banking on. It doesn’t matter how far apart prices are from fundamentals.

  41. @ Steve

    The silliness goes on. We have a friend who just paid $357k + costs on a small (town house size) block in Adelaide, approx 25mins from CBD in peak hour.

    The median wage in Adelaide is now $39K (it’s gone up 1k in nearly 10 years, wealth inequality at work ).

    So, she’s paid >9X annual wage JUST FOR A BLOCK! She’s yet to build! Only yesterday I was talking with one of the biggest tradies in Adelaide who’s being told continually that tradies in Adelaide are charging as much if not more than Sydney (something that has popped up on this site several times).

    All in, she’s going to drop best part of $1,000,000 for a HOUSE in Adelaide, that already has >8% unemployment (>33% youth unemployment) and AT LEAST 50,000 jobs (ie. ANOTHER 5% of the workforce!) to loose jobs over the coming 3 years!

    Of course, we know those ABS stat’s re: unemployment are lies, the situation is far worse.

    GST base broadening is only the start of it. The average Aussie is going to have his entire wealth squeezed from him over the next 20 years.

    Firstly by the government as they attempt to claw back the deficit.
    Then by the markets: Housing, property and stock
    Then finally by the government as it fails to come anywhere near paying down it’s debts.

    We know this is the path: It’s happened in Japan, it’s happening all through europe right now. It’s happening in UK (although the wealth effect is in full swing with housing price rises again).

    Greece is a great example: They literally have nothing left, but the banks which caused this mess, continue to lend more principal to them just so they can pay off interest….

    The bankers, the politicians and the wealthy business people will increase their wealth, while the 95% become used to fighting over 5% of the wealth.

    Sadly, we’ve all been banging on about this for >10 years now, and I suspect less than 3% of Australian’s have any wealth protection plans in ACTION….. It’s all in stupid property.

    And at the end of the day (I understand commercial property, but even that is murky with the internet making physical location less important) I just don’t understand how a fixed asset, that deteriorates, can rise in value against it’s income (ie. average/median wages).

    The answer of course, is that it can ONLY under a FIAT currency system, where the money MAKERS are willing to increase the money base….(it’s taken me 20 years of study to conclude that) but even then, once the FIAT system hiccups, the increase in the “value” of property plummets, as shown in the USA during the great recession.

    So while all these idiots beat on that property always rises:
    A: They are wrong
    B: They don’t understand why it generally rises
    C: They will be caught off guard

    If you think there’s a lot of businesses closing down at the moment, just wait til the wealth effect hit’s reverse. This is going to be a wild ride.

  42. all fiat currencies return to there intrinsic value…, this is not a new revelation. Not having a shot at you Matty, I agree with you bud. this problem won’t resolve itself until the next financial crisis cleans out all the bad debt and there is a lot to clean. I pity future generations for the incompetence of many, it makes me sick.

  43. @ Matty Unfortunately most people will not understand it until house prices collapse and they lose everything including their pensions. As Mike Tyson famously said “Everyone has a plan until they get punched in the mouth”

  44. Admin,

    I’m curious, why no new articles? This was published on 9th August & since this time there have been numerous events that seemingly are having or will have an effect on property prices (e.g. stock market crash)???

  45. Washington Post: “80% of the richest people in Australia have amassed their wealth via political connections rather than via innovative businesses.” Meanwhile at the coalface,in Sydney construction,labourers get $100 to $120 per day.The builders,that are connected to the hip,charge these kids out at $100 per hour each. I am a carpenter with 40 years experience doing detail works,always using and maintaining my own power and hand tools and vehicle. Spoke with a builder developer in Point Piper this morning.He wanted to pay me $25 per hour. WTF. Builders were paying me $25 per hour in 1984.(On contract I made more). To put things in perspective look up Sydney real estate prices in 1984.

  46. @Tony, Yes.It was a filthy ride this week for the stock market and not even a mention. This event is a major one in the financial terms. however the stubbornness and the fascistic way to deal with it (buying stocks to keep it from free fall)in both China and the US share-market tycoons suggests that the bubbles both in share markets and property is running out of puff and the coming days and weeks will be very interesting indeed. I suggest all of the members to buy themselves a gigantic bowl of popcorn

  47. Had a co worker today state that rents are due to rise because lending institutions are making it harder for property investors to borrow and that ‘you had better lock in your contract if you are a renter’.

    I never realized that investors rent out properties out of the kindness of their hearts /sarcasm

  48. @60

    Ask your co-worker how raising rents is working out in the mining towns.

    LOL, the arrogance of landlords.

  49. @60
    This is another nail in the coffin of the economy if this is true. I have seen a number of businesses closing down and lots of jobs smashed as the rents for business went up. The unproductive rent seeking army of this island are choking the remaining productive part of the economy.

  50. It’s their god damn given right raise rent and to force us all to look at moving aboard haha

  51. @TC
    As a younger person I would definetly be looking overseas, when the downturn comes I would be at least doing the working visas to the UK, Canada etc.

    I returned 3 years ago from Canada with a young family after 12 years out of the country, we are in Perth and I have taken a solid almost recession proof job and am riding it out while we rent.

    We are also moving to one of the best school districts in the city and the last RE agent we discussed a rental property with said the landlord just wants to get the place rented and would be willing to drop the asking from $490 to $430.

    I am looking forward to the day when, like previous generations, I can buy a house and chip away at it to improve it for myself, as opposed to sinking 100 to 200k of debt into it just to hand on that debt and more to the next “Punter!”

    As we all know our national income is falling significantly and our debt levels still climbing, we are in serious trouble!

    I hope our youth takes of and enjoys themselves whilst leaving the mess to the dickheads that created it!

  52. How mad are people, they take mortgages over , let’s face it 30 plus years, then the market has a bit of a good run and now you have made it ? Your wealthy ? What about the next 27 years ? Not sure where you bought your crystal ball but can you tell me where you bought it cause I’d like one, just so I can set a date for my nervous break down. It would be a good time to invest in the stock market in Australia in any company that sells anti depressants? Maybe people with mortgages have hedged their bets and already done that……nah I doubt it, they wouldn’t have that much spare cash. Need a shoulder? I’m here for you

  53. @Steve I am riding this wave too I can see what is comming its obvious to me. My pay has declined significantly since 2012. I rent with my gf no children yet but we plan to buy and have 2 when the correction occurs. We also live in Perth and we will probably move far south west for the beaches and better lifestyle after these house prices significantly drop.

    Hang in there Steve its going to take a lot of patience as everything is being done to keep these absurd prices high. So far we have only seen small adjustments in some suburbs and the south west certainty is not cheap.

  54. Fellow Adelaidians:

    Have I been missing this in the past, or is this a new phenomonon? Houses with “FOR RENT” signs out the front? Seeing them pop up in the Nth. Eastern suburbs.

  55. “An investor around two years ago would have paid around $1.2m [Australian] for something like this and right now today would sell it in the marketplace for around $A750,000,” Mr Crawford tells me, adding that he thinks prices are down around 40 to 50% across the market.

  56. HOCKEY must go!! This corrupt and incompetent despot deliberately allowed this situation to get out of control as he has vested interests to serve. He should not have been nominated as Treasurer in the first place as he is the child of Real Estate Agents and has a millionaire banker as a wife. This is a conflict of interest. It is illegal. Where is the justice system to take notice and do something or are they too busy chasing speeding fines cases? HOCKEY must go!!

  57. @ matty, I live in Adelaide, I think it depends on the agent / location. Going back a few years ago there was a group of townhouses near my place where the agent would always put a for rent sign out the front. The sign was out the front more often than not as they seemed to take around 2 months on average to find tenants.

    Going by SQM research the vacancy rate in Adelaide is higher than it has ever been.

    I would put this down to a few factors….

    Low population growth.

    High unemployment which is increasing, forcing a higher density of people per house. When people fall on tough times they are more likely to go into house share with friends and family which in turn puts upward pressure on vacancy rates.

    A lot of high density housing being built, knock down old houses and subdivide the block to build more. Many a suburb where you’ll see a stack of newly built townhouses, unit blocks or two homes being put onto the same block. I would imagine they are building enough and even more to cover population growth.

    Most of those new builds go for sale straight away and are palmed off through those one stop property investment shops that take care of the entire transaction for their client. Those gullible speculators get given a cheaply built and overpriced property that is unlikely to ever see a profit.

  58. Foreign investors only allowed to buy new dwellings in Australia. Have you noticed the gigantic scale of the construction of new apartments in Sydney.Many are sold before excavation.This is the biggest building boom this city has ever experienced.Global corporations building with a global workforce for global citizens. Meanwhile the locals private debt the highest in the world.The govturds have no debt it is all on the people.With dollar deflation outsiders buying property at nearly half price compared to 4 years ago.The more OZ dollar goes down = more development.

  59. If China crashes, Australia’s credit fuelled bubble will end badly. Big four are lending dangerous sums of money to households. The funny thing is, banks assets have grown massively over the last 15 years, but default rates have been stable ( except after GFC for couple of years).

  60. Stralia nice place mostly good people.BUT there is no way of making fair money from honest hard work and skills. Have been here for 50 years and worked for 40. Unless you are connected to the hip there is no way to a better life here. Your toils will always be sucked by the parasites that rule this city and nation. Shame because this is a truly beautiful country.

  61. In many countries you are not even allowed to buy in different state to keep the housing market under control for state citizens but in Australia anybody can buy from overseas not even have to have residency its really ridiculous. Crony Capitalism is a poison…..

  62. I’m starting to see for lease signs pop up everywhere here in the Illawarra, have not seen them for years. Over the years have heard plenty of stories of waiting lists at real estate agents and 100s of applicants for 1 house a shortage of housing some thing has surely changed don’t know if still a shortage and people can’t afford the rents. We have a retail business in the area for 12 years last 2 financial years have had a steep decline no one is spending our sales have declined 60% from the peak and I don’t think the worst has hit yet. We are about to lose what’s left of our steel industry.

  63. @76, Brisbane has huge numbers of apartments that are still under construction, and probably most of those are sold “off plan” to investors. So what happens if they stay empty? Are we supposed to be following China’s lead, where every citizen has an empty house in the middle of nowhere they are paying off?

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