A cool little segment by CNBC talked about Chinese buyers rampant buying patterns in Australia and around the world. It becomes slightly clearer why from this short video.
A huge driving factor is simply the currency. As the Australian dollar has dropped below $0.70 from previous highs of near parity, property prices have become effectively 30% cheaper to buy.
It makes sense to buy when property becomes comparatively so much cheaper.
It’s almost like saying what was $1,000,000 to a oversees buyer, is now $700,000.
A key question is which way Australia’s dollar is forecast to go?
According to SMH it is forecast to continue it’s downward trend.
Deal of the century!