It’s a topic we know all too much about right now: foreign investment in the real estate market – especially with Chinese purchasers. However, the scene in Australia is a little different from the one in Vancouver.
Chinese investment in Australia’s housing market has quadrupled from 2013 to 2015: soaring to $24.3 billion from $5.9 billion. Chinese buyers are dominating the housing auctions in suburban Australia – and in many such auctions it has become increasingly rare to see bidders of other nationalities.
However, it is not just offshore investors who are dominating the market. Australian real estate companies claim that the largest percentage of Chinese buyers whom attend their auctions are either Australian citizens or permanent residents.
In these house auctions, it’s common for the incredibly bidding-savvy Chinese buyers to do well. The bids all come down to readiness; how much homework you have done; and how much heart you put into the bid, according to one auction-style home purchaser. He recommends not to bother bidding near the beginning of the auction, so as to not “waste breath.” He claims you will know who you are really bidding against near the finish line.
Another bidder, one of dozens on the four bedroom house that ended up selling for $1.8 million, was hoping to move his growing family out of their cramped apartment. He, like many of the bidders, has been searching for a home for well over two months – but it all comes down to who wants it the most with an auction-style market.
What do you think about buying a house in an auction? Would it make the process easier or more difficult? We are curious to know your opinions!