From Sydney`s restaurant to Melbourne`s Eureka viewing platform, many cranes are under construction. Perhaps half a year ago can see not so much, but also not small.
But the ground beneath these cranes is changing dramatically, as the housing markets in Sydney and Melbourne are so different.
Experts predict that by 2017, changes in the housing markets in New and Victoria will have a significant impact on the economies of both places, and even Australia as a whole.
Sydney`s property market has been dominated by Harry Triguboff`s Meriton. In recent months, Triguboff has been warning of a serious and imminent crisis, and now he says it has happened.
And with more apartments under construction in Melbourne, the impact could be double that of Sydney.
Triguboff said that last week he had 20 pending futures deals with Chinese buyers, but only 10 of them were successful. Some of them have transferred flats at below-bought prices.
He said the housing market was still rising six or seven months ago, until it began to rise or fall six months ago. At that time, bank regulators suddenly began to ask banks to ask Chinese prospective buyers for loans for information they could not provide at all. Naturally, these loans can only be rejected in the end.
Experts believe that the current bank policy is a 2016 version of the "White Australia Policy."
In the 1950 White Australia Policy, any non-ferrous immigrant had to pass a language test using any of the world`s 80 languages.
So, as long as you don`t want someone to become an Australian immigrant, you just need to test a language they can`t speak.
And the current policy of banks on Chinese loan applicants is exactly the same as those that failed to pass the language tests.
Many Chinese buyers typically offer 20 percent more cash after paying a 10 percent deposit, but the remaining 70 percent will be difficult to transfer out of China, Triguboff said.
Now, because they can`t pass the bank`s "language test", they can`t raise the remaining 70%.
But banks should be aware that Chinese buyers` home purchases have brought about a boom in the Australian property market, and that new lending requirements will lead to most of the forfeiture of deposits, which will also have significant consequences for the Australian economy.
In this case, the New and Victorian governments are also charging Chinese buyers additional fees.
In the new state, overseas buyers are required to pay A $10000 in application fees, and stamp duty on overseas buyers has risen 4 to 8 percent. Starting in 2017, overseas buyers will also increase land taxes by 0.75%. In addition, the district city hall may also charge other fees.
In Victoria, the sub-market prices of apartments are lower than the original futures prices. The state government decided to stop the development and construction of new apartments by increasing the construction cost of each apartment by A $100000.
At present, this policy has begun to bear fruit, but the economy will also be hit hard.
