Oct

29

At what stage do you try and fade the elephant in the room. What is a leading indicator that the government will introduce a policy change that could change this ferocious bid, with a lot more fire power on its way, if no changes are made?

"Investors Become Like Bulls in a China Shop":

A Sydney property developer who is working with Chinese investors told me that if Chinese stopped buying in areas that are popular with Chinese home buyers, the value of these local markets would fall by about 25 per cent.

These local bubbles are having a ripple effect, pushing buyers into other areas of the Sydney market.The impact of immigration is also considerable and cumulative. More than 400,000 people born in China or Hong Kong have become permanent residents in Australia. The number of immigrants from China continues to exceed 30,000 a year. The number of Australians who speak Mandarin or Cantonese is more than 600,000. The number of people in Sydney who identify as having Chinese heritage is now more than 360,000, or 8 per cent of the population.

The Foreign Investment Review Board looks carefully at the culturally sensitive areas of farming and housing. If changes being made by Chinese governments to cool their property markets are causing market heating to spread to Sydney and Melbourne, it shows just how integrated Australia is becoming with China and the Chinese, which brings a new set of complications - the complications of intimacy.

Stefan Jovanovich writes:

Both of Thomas Mellon's sons, Andrew and Richard, remember their father the Judge being amazed and alarmed at how much the prices of Pittsburgh real estate continued to escalate as more and more of the Irish and other immigrants spent money to buy property. When they would, as young men, take their father to lunch, they would always be careful to pay the tab because, for their father, prices should always have been what they were when he first ascended to the bench "before the war".

Victor Niederhoffer writes: 

This is why the values of privately held companies always lag behind the prices of publicly held companies. The idea should be generalized perhaps into why big stock market moves in one market filter and percolate into other markets. That has been tested.


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