Prices are not dropping even when thousands of units are hitting the market every month. The reason is because foreign buyers like to park their money out of their country so it won't get confiscated.
When there are multiple real estate agents all of whose promotional material is in Chinese in an English speaking country you have to be willfully blind not to see cause and effect.
Prices are not dropping even when thousands of units are hitting the market every month. The reason is because foreign buyers like to park their money out of their country so it won't get confiscated.
If we were really "exporting" housing services that would be an underrated opportunity, but when investors (foreign or domestic) purchase housing purely as an investment that just sits vacant, they drive up housing costs for local residents. And there's less to gain by selling to an investor as opposed a live-in homeowner since the homeowner will spend more money locally than the absentee investor that's just holding the property.
Citation on what? The price not dropping? The supply of units increasing?
I can't give you a citation on who is buying the units because that is obfuscated by design. If the people trying to hide their wealth put their names on the deeds they have just made sure they stay alive in the dungeon until the sale was finalized.
Seeing three separate real estate agents having nothing but Chinese brochures in their offices tells me they aren't expecting locals to be buying from them.
>Thousands of units hitting the market each month is a LOT.
This data shows 18 thousand approved for all of Australia.
Not "thousands per month" for the mysterious city you live in.
For comparison, in 2017 Seattle got 10k new apartments which was enough to match the growth caused by Amazon's hiring and generally keep the prices sane.
So a thousand a month for the city the size of Seattle is good enough to counteract one of the biggest population growths.
In January. There are literally 3 cities that matter and 4 kinda do. If you go by state you can see that a place like Sydney is getting ~1200 non house units approved.
I see 5 50+ story building completed in the last three months, with another 4 being build. Prices are not dropping. Buildings are not being occupied.
That's not a problem with density, rather letting non-residents purchase the units. It's not hard to think up solutions to discourage that, such as taxes as Vancouver did or outright bans.
Yup. In Amsterdam we now have fines against empty homes. We used to have a vibrant squatting culture. Any landlord who didn't live in his home, or made it available to the market for rent or for sale, would be met with squatters. In the past decade or so, squatting was harshly dealt with through the judicial system and instead landlords can now be fined if they let their home empty for more than 6 months.
> Prices are not dropping even when thousands of units are hitting the market every month.
Well in fairness, even with all else being equal, units entering the market doesn't imply prices dropping. It only should imply prices being lower than they otherwise would be.
Prices are not dropping even when thousands of units are hitting the market every month. The reason is because foreign buyers like to park their money out of their country so it won't get confiscated.
When there are multiple real estate agents all of whose promotional material is in Chinese in an English speaking country you have to be willfully blind not to see cause and effect.