(29-11-2015, 07:49 PM)BlueKelah Wrote: [ -> ]The music is stopping and looks like the investor herd is rushing for the big EXIT sign with all those big auction numbers coming up...
Pretty poor preliminary clearance rates when just few months back they were running at 80%+
NSW 56% 1284
https://www.realestate.com.au/auction-results/nsw
Vic 65% of 1828
https://www.realestate.com.au/auction-results/vic
Correction or crash coming? Tide is turning, who's gonna be swimming naked?
As the deadline for declaring illegally owned property ends on tomorrow, divestment orders are going to start flowing out from the aus tax office for illegal china/foreign property buyers starting next month.
hopefully SG developers developing down under with significant debt dun go down under when reality hits, especially if Yellen decides to liftoff in December, starting to look bad for SG listed companies like CES/Weehur/SL/FCL/ChuanHup..
I think you should be applying yr bear case in Singapore rather than Down Under...
As I have always been saying Down Under mkt is way too big for you to simply apply yr cosmopolitan city view...
So far FCL's land sale on the Eastern states have been sold out. AVJennings has been reporting strong sales.
What you have been focusing and extrapolating are the overheated Sydney and Melbourne apartment markets.
Even the tightening of the investment property lending also have means and ways of getting round.
As I have been saying, you have not been working hard enough to read up on the diversity of a big market.
You have been choosing to focus on your naked theory and so far have missed out on the steep rise in Sydney since you raise yr red flag on the mkt 2 years ago.
Your would have better enhance support your claims via a more comprehensive claims rather than keep re-iterating your unchanged melody.
LOL.. as expected the apartment bust is in its first legs. Even the BIG BOSS HARRY is worried liao. What will happen to Frasers / CES /etc etc.. so called FULLY SOLD projects when their foreign buyers cant pay up?
Harry Triguboff warns of China crisis
EXCLUSIVE
A “VERY significant” number of Chinese buyers are failing to settle their off-the-plan units and urgent action is needed to prevent a crisis, Australia’s richest man has warned.
Harry Triguboff, founder of Australia’s biggest apartment builder, Meriton, says he predicts an increasing number of Chinese buyers will be forced to forfeit their deposits as local banks pull funding and China cracks down on capital outflows.
Mr Triguboff is the country’s third-richest person with an estimated net worth of $10.1 billion. Australia’s foreign investment driven property boom boosted the 83-year-old’s net worth by $1.3 billion last year, the biggest gain of anyone on
Forbes’ annual rich list.
In earlier reports, Mr Triguboff appeared to downplay the impact of the “very small” number of defaults Meriton had seen, but he told news.com.au the problem was growing.
“There are a lot of Chinese now that are not settling. When you say the numbers are low, it’s because you take it over a long period, which is irrelevant,” he said.
“You must take today’s figures, so the numbers are very significant. Now the people are running around trying to find alternate finance.”
In February, broker CLSA cut its apartment forecasts due to concerns around ongoing bank tightening of lending to foreign investors, and an official crackdown by the Chinese government trying to stop the flow of money leaving its shores.
Mr Triguboff confirmed that a growing number of Chinese were desperately seeking local buyers to enter into third-party settlement arrangements so they could recover their deposits
This unbelievable statistic shows the scale of Australia's apartment building boom
Australia is building more apartments than ever before right now, and it looks like there’s a whole lot more coming.
All you have to do is look to the skies in any of Australia’s eastern capitals to get an understanding of just how enormous the high rise building boom is.
They’re everywhere, as pointed out by UBS’ Australian economics team, comprising George Tharenou, Scott Haslem and Jim Xu, in a research note released earlier today.
Quote:Using the just released ‘RLB Crane Index’, which counts and maps ‘hotspots’ of both residential and non-residential cranes, the number of cranes currently in use for residential construction has rocketed by a cumulative 313% in the last 3 years to a ‘sky-high’ record level of 528 in Q3-2016 – mainly for high-rise units in Sydney, and to a lesser extent in Melbourne and Brisbane.
528 cranes were in use for residential construction across the country in the September quarter — a truly epic number.
[Image: ubs-crane-count.jpg]
To put that figure into perspective, RLB estimates that there were more cranes in use for apartment construction in Sydney, Melbourne and Brisbane (454) than there were in New York, Boston, Chicago, San Francisco, Los Angeles, Toronto and Calgary combined (419)
Go Australia!
It not only underlines the scale of the construction boom that is currently underway in Australia, but also why an increasing number of analysts are warning of a potential bust ahead.
But still under supply ! They should build more to meet the demand !
This will affect property market in Aus.
.......................
Westpac tightens property lending rules again
Westpac is to announce a new crackdown on local and overseas property buyers, in response to growing pressure to improve the quality of its loan book as lending and regulatory costs squeeze profits.
The changes, to be announced to customers this Saturday, will be target dubious sources of income used for loan applications and impose tougher controls on foreign buyers with Australian visas.
Westpac and its subsidiaries St George Bank and Bank of Melbourne have introduced other changes in recent months targeting investor-only home loans and overseas buyers.
The latest moves follow warnings to its mortgage brokers – which advise borrowers on the best loan – about inaccurate and misleading applications delaying responses and increasing costs.
The bank says many applicants fail to fully disclose payments to finance companies or other banks, borrowing limits with other lenders, monthly repayments and the balance of their debts.
Refinancing applications for existing property loans with other lenders often fail to include explanations for late fees or other apparent lending problems, such as payment default interest, it claims.
Westpac announced in April it was
ceasing lending to all foreign residential property buyers.
All lenders are nervous about the quality of tranches of overseas loans, particularly from mainland China, after widespread fraudulent applications were detected.
Other lenders have tightened lending to varying degrees.