Why is this so?
The Chinese gummint has introduced tough restriction on the mount of money its citizens can send out of China, that's why.
The unthinkable has started to happen. The mass of Chinese property buyers who snapped up Australian apartments “off the plan” on the basis of a 10 per cent deposit have started to walk away from their agreements in Sydney......
.........On the one hand Chinese are rescinding but they are being replaced by other investors of Asian origin plus Australian investors.
Yesterday, I detailed how the Chinese government was really clamping down on money leaving the country for real estate investment and this is the reason for the Chinese turning their backs on their Australian contracts — the local banks will not help and the investors can’t get their money out of China. The same problem is affecting real estate markets in North America (Real estate rattled as Chinese capital flows ebb, August 3).
Poor old Phil Twyford. Falls flat on his arse, yet again.
So maybe now we can forget the myth of Chinese buyers pushing the Auckland market and get on with booting out the real cause, Auckland Council.
BTW the problem of journalistic illiteracy infects The Australian as well as lesser newspapers.
In this case the writer talks of buyers 'rescinding on their contracts.' Unbelievable!
You either renege on a contract or you rescind the contract but you don't rescind on a contract