China recently introduced new restrictions and prohibitions on banks lending for THIRD homes. So no property bubble there then.
A week or so later , earlier this week the Australian government said it was tightening rules on foreign nationals buying properties in Australia. The Prime minister, who was the one who relaxed the rules a few years ago, stood tall and proud and said he was going to protect Australian families from being priced out of the market in their own country. Booyah!
Except that it won’t will it. Clamp down now and what? The price rises which have already made houses unaffordable for ordinary Australians will suddenly come down? I don’t think so. Pure political posturing and verging on the nasty blame the foreigners.
New rules will be put in place he trumpeted. Rules to prevent nasty estate agents flouting the rules and allowing foreigners to buy houses. Bollocks. All that will happen is you will get a rash of business for accountant and lawyers to set up trusts in Australia or off-shore which will buy for their trustees. Or some variation of the true and tried get-arounds.
China is losing control of speculative money going to Oz. They are launching a new massive stimulus for new business investing. I suspect they hope a new home grown investment push with free money might keep investment attractive at home. Seems policy is pulling in all directions at once.
but China is confident and with its new increase in power and larger voting rights at the World Bank why shouldn’t it be confident.
No choke off yet in Oz’s property bubble but definitely trouble brewing.