Property News - OH Property Group

Sydney leads national decline in stock on market in January: SQM

Tue, 07 Feb 2012 00:00:00 -1100

Sydney registered the biggest monthly decline in property listings in January, with peak summer stock levels falling 15.9% from 34,000 to 29,000, according the latest figures compiled by SQM Research.

All cities experienced the typically expected monthly drop in sales stock, with Adelaide experiencing the most marginal decline, falling by 0.3% month-on-month.

Nationally property listings fell by 4.3% to just below 369,000, with SQM managing director Louis Christopher telling Property Observer the market volumes have most likely peaked.

For the year to January listing are up 13.5% led by a 33.3% increase inMelbourne listings.

Christopher says seasonality is the biggest factor in the January decrease, though the drop was bigger than expected.

Source: SQM Research

“It does convince one that stock levels have peaked,” Christopher says.

“At the start of 2009, buyers quickly took out the low-hanging fruit – the same thing is happening now,” he says.

Christopher says February data will be crucial.

“If there is no pick-up in listings or a just a marginal increase, then it will indicate that something cyclical is happening.

“Then it will be clear to us there is something else is going on in the market, such as listings being absorbed by an increase in buyer activity,” he says.

Christopher says Sydney vendors are mos likely withdrawing their listings and preparing fresh marketing campaigns ahead of the February pick-up.

Christopher says not much should be read into the 8.3% month-on-month drop in Melbourne listings given how much they are up year-on-year.

According to SQM, Hobart recorded the largest yearly increase, climbing 40.9% since the corresponding period of the previous year (January 2011) and coming to a total of 4,558.

Darwin recorded the largest yearly decrease, falling by 11.7% since the corresponding period of the previous year (January 2011) and coming to a total of 1,331.

Marrickville ranks alongside Redfern, Naremburn and Ryde as PRDnationwide’s 2012 housing hotspots

Tue, 07 Feb 2012 00:00:00 -1100

The inner-western Sydney suburb of Marrickville, described by John McGrath in 2010 as the “new Paddington”, has been picked as one of fourSydney housing hotspots for 2012 by property group PRDnationwide.

''It feels like Paddington in the 1970s. Buy here and double your money in the next six years,'' McGrath famously said two years ago.

The multi-cultural suburb, which has strong ties to the Greek and Vietnamese community, is 7 kilometres west of the Sydney CBD.

It ranked as the ninth most affordable suburb within 10 kilometres of the Sydney CBD, according to RP Data, which recorded 234 sales during 2011 and a median sales price of $751,000. PRDnationwide puts the median house price at $755,000.

“Located in close proximity to the suburbs of Enmore and Newtown, Marrickville has seen a solid increase in the median house price over recent times, with a five-year average growth of 7.2% per annum,” says Oded Reuveni Etzioni, PRDnationwide’s NSW research analyst, who picked this year’s list of top-performing suburbs.

“The expansion of the Marrickville Metro shopping centre, currently under council assessment, is likely to further increase the desirability of the suburb,” he says.

PRDnationwide’s other Sydney housing hotspots are Redfern, Naremburn and Ryde.

	Location	Distance from CBD	Median house price
Marrickville	Inner West	7 kilometres	$755,000
Redfern	Inner South	2 kilometres	$780,000
Ryde	West	12 kilometres	$843,500
Naremburn	Lower NorthShore	6 kilometres	$1,275,000

Source PRD Nationwide

“Redfern’s location on the fringe of the Sydney CBD allows residents an easy commute to shopping and cultural facilities,” says Reuveni Etzioni.

“Benefiting from urban renewal projects and a location close to main arterial road and rail infrastructure, the suburb exhibits strong long-term growth despite a drop in median price in the 12 months to September 2011,” he says.

Similarly, Ryde is strategically well placed, located on the intersections of Victoria and Lane Cove roads and close to the employment hubs of Meadowbank and Macquarie Park.

“New development in Meadowbank will see more residential apartments being built on old industrial land and the Ryde town centre redevelopment is set to increase the amenity of area,” Reuveni Etzioni says.

Naremburn, where prices increased by 13.5% between December 2009 and 2010 but were softer in 2011, gets the nod because it is “strategically positioned to benefit from the development of the Gore Hill mixed-use business precinct, which upon completion will become a large regional employment hub”.

It will also benefit from the expansion of the Royal North Shore hospital, which will is likely to bring more medical professionals to the area.

According to Reuveni Etzioni, demand will increase in 2012 for well-located properties in the inner and middle ring of Sydney.

“During times of uncertainty buyers return to the fundamentals of dwellings close to the CBD, with locations that are supported by a good public transport infrastructure,” he says.

Units rather than houses will again be the dwelling of choice in these locations, he says, as more new developments are completed over the next 12 months.

Other factors that motivated his selection of suburban hotspots include population growth, which drives increasing demand for properties and generally puts upward pressure on property prices; infrastructure and investment “to support current and future population increases and development of amenities”; and “employment opportunities and diversity, which includes proximity to employment nodes or potential job growth”.

Clearance rates up but volumes down in auction season opener: Weekend auction wrap

Mon, 06 Feb 2012 00:00:00 -1100

There was a firm start to weekend auctions in the Sydney and Melbourne residential markets, albeit on low volumes.

In Sydney there was a 72% success rate from 67 report results complied from the 80 scheduled auctions monitored by Australian Property Monitors.

On the same weekend last year there were 106 Sydney auctions and a 49% clearance rate.

But the very next weekend last February, vendors secured Sydney’s highest auction clearance rate for the year, when there was a 63% success rate.

According to Clinton McNabb, research analyst at Australian Property Monitors, the Sydney clearance rate fell gradually across the year from 59% in February to a low of 49% in December, and was 53% for the year.

APM has 198 auction listings for February 18, then 330 and 429 for the remaining February Saturdays.

Despite the big jumps in weekend volumes APM suggests the overall February total might be around 20% lower than last February.

Melbourne secured a 58% success rate from the 112 reported auctions.

This was a slight improvment on the 56% clearance rate for Melbourne auctions in 2011.

On the same weekend last year there were 189 auctions and a 56% clearance rate.

Next weekend about 305 auctions are expected in Melbourne, then 620 and 850, according to Robert Larocca, communications manager at the Real Estate Institute of Victoria.

Balmain's Sarah Lorden Real Estate joins McGrath

Mon, 06 Feb 2012 00:00:00 -1100

The Sarah Lorden Real Estate agency has joined the McGrath Estate Agents group.

McGrath chief executive John McGrath says the expansion into the Balmain Peninsula with the Lorden sisters, Sarah and Kate, is an exciting opportunity.

“Sarah and Kate have worked in the area for 17 years and have created an outstanding brand with a loyal local clientele,” McGrath says.

McGrath predicts continued consolidation within the industry.

McGrath Balmain will be a satellite to the company-owned Leichhardt office, already a dominant force in Sydney’s inner west, transacting a record $590 million in real estate last financial year.

The successful local independent agency shared the same philosophies of sales excellence and customer service focus, McGrath says.

McGrath Balmain will have a team of 30, with Kate as licensee in charge and Sarah as associate director of sales, allowing her to continue with sales.

Kate Lorden says she and Sarah are excited about the new partnership and see it as a progression of their own careers.

“We have long admired McGrath’s approach to marketing, training and technology. For a customer-centric business such as ours, we were attracted to their systems and management which will free us up to concentrate on a closer interaction with our customers. “

The McGrath Balmain office opens its doors today at 222 Darling Street.

Its major competitor is Cobden Hayson.

Sydney leads auction clearance rate results

Mon, 06 Feb 2012 00:00:00 -1100

Sydney has outperformed the other major cities in this weekend’s auctions.

Auction figures released by Australian Property Monitors (APM) found, 71.6 per cent of the properties listed for auction in Sydney cleared over the weekend. This equates to a 22.6 per cent increase from the same time last year.

Whilst Melbourne and Brisbane both recorded increases from last year, with clearance rates of 65.5 per cent and 25 per cent respectively, Adelaide experienced a decrease with just 11 of the 20 properties up for auction selling, giving the city a 45.8 per cent clearance rate.

The most expensive property sold over the weekend was a three bedroom house in Burwood NSW, which went under the hammer for $1.17 million.
A three bedroom townhouse located in Campbelltown, NSW took the title of the weekend’s most affordable property, selling for $186,500.

In Victoria, auction figures released by the Real Estate Institiute of Victoria (REIV) showed there was a total of 112 auctions on the weekend, of which 65 sold and 47 were passed in, 28 of those on a vendor's bid. This equated to an auction clearance rate of 58 per cent, just under the result recorded by APM.

“As volumes remain low these results are unlikely to be an accurate indication of the current state of the market. On this weekend last year there were 189 auctions and a clearance rate of 56 per cent,”REIV chief executive Enzo Raimondo said.

“Next weekend around 305 auctions are expected followed by 620 on the weekend of 18 and 19 February.”

Whilst Brisbane recorded a slight increase in clearance rates from last year the underperforming auction results continue with just 25 per cent of homes clearing. However, APM's figures were at odds with the general outlook of independent auctioneering firm JA Auctioneers, which expects strong auction results for 2012 in South East Queensland.

Director Jason Andrew said vendors' strong motivation to sell due to financial and personal pressures was a major pushing point.

“There’s no doubt at this point vendors need to remain realistic with their price expectations to entice buyers to act.”

Cautious optimism as home sales trend upwards

Mon, 06 Feb 2012 00:00:00 -1100

The clearance rate for the first weekend of the autumn home auction season in Sydney was strong but it is still too early to gauge the underlying sentiment of buyers.

The auction clearance rate of 71.6 per cent on Saturday was well above the 48.2 per cent reported for the corresponding weekend last year. But with only 76 properties offered at the weekend, compared with 111 last year, a clearer trend will not emerge until the number of properties on offer increases.

Of the 63 reported auction results, four were withdrawn and 48 sold at an average of $550,000. The median price of houses sold was $595,025.

The most expensive Sydney property reported sold at the weekend was a three-bedroom house in Burwood for $1.17 million. The most affordable was a three-bedroom townhouse in Campbelltown that sold for $186,500.

Last year ended on a subdued note for the Sydney auction market with year-low clearance rates in December despite significant numbers of properties being offered for sale.

Although considerable numbers of first-home buyers were active in the marketplace over the last three months of the year, the market generally had run out of puff by year's end.

Sydney was clearly the best performer of all capital city housing markets last year with median house prices down by just 1.3 per cent over the year and unit prices down by 0.9 per cent.

The resilience of the Sydney market reflects the underlying shortage of accommodation in the city, with a chronically tight rental market.

This year is set to be one of gradual recovery in the Sydney market with median house prices expected to rise by between 3 and 5 per cent over the year.

First-home buyers will be quiet early in the year as demand from that group was brought forward at the end of last year.

But expect this to be offset by increased activity from change-up buyers in the middle price sector of the market and investors in the lower sectors - particularly the unit market - that will keep buyer activity ticking along.

Although the prestige market will remain relatively subdued initially, expect some momentum to build through the year on the back of increased activity by aspirational buyers seeking value in quality properties in prestige locations, particularly in the $2 million to $3 million price range.

Unemployment in Sydney has increased in recent months, but the outlook remains positive despite indications of further job shedding, particularly in the finance sector.

The positive outlook will be enhanced by a further fall in official interest rates expected to be announced by the Reserve Bank board after its meeting tomorrow.

Sydney prices are on firm ground

Sun, 05 Feb 2012 00:00:00 -1100

Sydney's housing market is well and truly holding its own against a property market downturn.

The latest figures from the RP Data-Rismark Home Value index show Sydney values increased 0.7 per cent in the December quarter and remained virtually flat for the full calendar year, recording a 0.3 per cent decline.

At the same time, every other capital city recorded a fall in home values in the December quarter.

The resilience of Sydney's market clearly begs the simple question … why? How has Australia's most expensive housing market defied a more significant slump in prices? Well, the answer is likely to be found in several interesting facts.

First, the long-term cycle for Sydney is one of the weakest across the capital cities. In the past 10 years, Sydney home values appreciated just 4.1 per cent a year. That's compared with Melbourne values gaining 7.1 per cent a year and Brisbane values increasing at 8.1 per cent a year in the past decade.

So, in cyclical terms, the Sydney market started the latest growth phase with home values well behind the eight-ball. Based on median house prices, 10 years ago Sydney prices were 38 per cent more expensive than Melbourne's and nearly double that of Brisbane. In today's market Sydney prices are just 10 per cent higher than Melbourne's and 23 per cent higher than Brisbane's.

Another reason for Sydney's resilience comes back to the rental market. Sydney rents increased 6.8 per cent for houses and 5.1 per cent for units last calendar year, one of the highest rates of rental growth across the capital cities.

Rental vacancies are low and rental demand is high; the result is rising rents and above-average investment yields.

Clearly, more and more prospective first-home buyers are making the decision to pay a mortgage rather than pay a landlord, a trend that is reinforced by the latest housing finance data from the Australian Bureau of Statistics showing first-time buyers now represent about 20 per cent of the overall owner-occupier market.

An under-supply of housing across NSW is also playing a role in Sydney's housing market buoyancy. According to the federal government's National Housing Supply Council, NSW accounts for about 40 per cent of the national housing under-supply.

In raw numbers, the council estimates NSW needs 73,700 additional dwellings to satisfy housing demand.

With demand exceeding supply, the market for established homes and rental accommodation is under upwards pressure.

With values holding up comparatively well in the Sydney market, it is also interesting to note that transaction volumes in November were tracking about 16 per cent higher than the five-year average.

The average time to sell a home was well below the national average (49 days compared with 59 days across the combined capitals) and vendor discounting was also comparatively low (7 per cent compared with 7.4 per cent).

It will be interesting to watch how the Sydney market pans out now the stamp duty exemptions have been scrapped for first-time buyers of established homes. Arguably, a component of the strength of the market can also be tied back to the stamp duty exemptions on offer from the state government.

The potential for a saving of up to $18,000 has provided a strong incentive for first-home buyers to bring their purchase decisions forward. By the end of this month we should have some indication, with the RP Data-Rismark Index revealing the performance in the Sydney market for the first month of the new year.

It's going to be the year of the unit

Sat, 04 Feb 2012 00:00:00 -1100

New or old, apartments will be a popular choice for Sydneysiders in 2012.

It's just possible that apartments, especially those at the cheaper end, are one bright spot in Sydney's real estate market.

Prices generally for units have performed better than those of houses during the past five years, according to RP Data - with units recording average annual growth of 5.2 per cent compared with 3.6 per cent for houses. In the 12 months to December, RP Data reports unit prices rose by 0.9 per cent, while house prices fell by the same amount.

RP Data's senior research analyst, Cameron Kusher, says units should continue to do well this year and the more affordable ones should do best, even though there will be fewer first-home buyers now that the stamp duty exemption has ended for existing properties under $600,000 (it continues for new properties).

Kusher and other experts believe there are several reasons why units will continue to prove popular. The most obvious is that in a city as expensive as Sydney, they are the cheapest way into the property market. And with rents continuing to climb and the rental market in most suburbs very tight, this creates an incentive to buy.

A director of Richardson and Wrench, Peter Baldwin, believes the rising cost of renting makes buying a unit a much more sound option at the moment. ''It will be a price-factor thing,'' Baldwin says.

''The young ones won't be able to afford houses.''

A second reason for the popularity of apartments is that Sydneysiders are actually growing to like living in them.

''There's no doubt about it, people are embracing apartment living,'' says the senior economist at Fairfax-owned Australian Property Monitors, Andrew Wilson.

Prices

One of the biggest influences on the price of apartments (and houses) this year could be decided this week. The Reserve Bank is widely tipped to announce the first of several more cuts to interest rates on Tuesday, which, if banks pass the cuts on, would make prices more affordable.

The head of real estate strategy at Macquarie Capital, Rod Cornish, says if the cuts occur, affordability will ''be getting back to 2002 levels''.

''That is going to encourage the market to stabilise first and by the second half of this year, we think there will be some mild growth,'' he says. ''[That will be] predominantly growth in the mid-price range - $400,000 to $800,000 - because that's the one that will be most affected by the cuts.''

Baldwin says two rate cuts this year would be ''kindling to light the market'' and would ''really be a fillip to anyone'' buying. But he is not confident there will be much price growth. ''If it flatlines, that's the best possible result for the [apartment] market this year.''

Wilson predicts that if the economy continues to grow this year, the market for prestige apartments, along with the rest of the apartment market, should also start to pick up.

The managing director of Meriton, property developer Harry Triguboff, is more bullish. He thinks unit prices will rise by between 5 per cent and 6 per cent this year, although there will be nothing like a boom. ''Councils never approve enough [developments] so it will just go up gradually,'' he says.

On the lower north shore, apartments under $1.5 million will be popular because prices have stopped falling and buyers can see more chance for capital growth, says the principal of Belle Property Mosman, Tim Foote. ''I'm not predicting that prices are going to improve dramatically but I think there will be activity,'' he says. His office has already had strong interest from buyers this month.

The same is happening in the eastern suburbs and inner west. In Bondi, a unit that was for sale with expectations of $520,000 to $530,000 last year sold this month for more than $540,000, says the managing director of Morton and Morton, Ewan Morton. He says the start of this year has been much busier than that of last year, which he thinks is because buyers and sellers need to ''get on with things. They can't sit and wait forever.''

Baldwin predicts the most popular suburbs for apartments this year will be those close to public transport and within easy reach of the city centre, in particular Parramatta, Ashfield, Marrickville and the area from Epping back to Meadowbank. Buyers will mainly be owner-occupiers, especially upgraders, Cornish says, while investors will be more cautious until they see the market has stabilised and prices are rising.

New v old

The senior director of residential properties at CB Richard Ellis, Tim Rees, thinks there will be a lot of activity this year from buyers wanting affordable new and off-the-plan apartments up to $900,000. But the real ''market drivers'' will be several state government incentives that encourage buying off-the-plan or new dwellings under $600,000.

One of them, stamp duty exemptions for first-home buyers, has just ended for existing properties but they continue for new and off-the-plan dwellings. Another, the Home Builders Bonus scheme, gives all other buyers a full exemption on stamp duty for off-the-plan dwellings where construction hasn't started, or a 25 per cent discount where it has. However, this scheme finishes on June 30 and Rees says this will create a lot of demand in the first half of the year.

CB Richard Ellis alone has more than 12 off-the-plan projects earmarked for sale before July, all of which are in inner and middle-ring suburbs, such as Mosman, Homebush and Macquarie Park, Rees says. So far this year, they've sold 40 apartments, a better result than this time last year, which Rees says is also a reflection of interest rates coming down and a tight rental market.

The managing director of residential for Colliers International, Peter Chittenden, says there has been consistent interest in apartments under $600,000 in the past year, something he thinks will continue until closer to the June 30 cut-off. After that, some developers might extend this exemption themselves by offering to pay buyers' stamp duty to maintain their market share, Chittenden says.

Meriton, too, will be building several hundred more apartments this year than its usual annual total of 1500, Triguboff says, in areas such as South Sydney, Rhodes, Epping, Warriewood and St Ives.

Despite this strength in new apartment sales, Cornish believes there aren't enough being built to satisfy demand and there is ''not as much new construction as there has been in previous cycles''. Most of the demand will be for established apartments, he says.

Mani's ready to enjoy the calm after the storm

Mani Thiru has been in Australia for just six months but has decided now is the time to buy an apartment.

The British-born IT worker of Sri Lankan heritage spent the past decade in the Netherlands and came to Australia last year for work. Since arriving, she has lived in Mosman, near the beach.

She wants to buy in the same area and is looking for a one- or two-bedroom apartment, possibly with a view of the water, up to $600,000.

Thiru says she usually invests her savings in the sharemarket but economic uncertainty in Europe, cuts to interest rates here, plus the high cost of renting encouraged her to buy.

''The stamp duty concessions were in place last year, which I think inflated the prices, especially towards the end,'' she says. ''It felt like there was a lot of competition last year whereas now it seems to have calmed down.''

So far, Thiru has seen several units she likes, one of which is being sold by Adam and Jasmina Vernon of Belle Property Mosman.

Investors read the signs of the times

Just a few weeks into the year and already Bahar Etminan, the editor of fashion and beauty website rescu.com.au, and her town-planner husband were pounding the pavement looking to buy an investment property.

The couple, who have a young daughter, are renting in the eastern suburbs while they save up to buy a house. They have been investing in apartments every 12 to 18 months as a way of working towards this goal and already have several investment properties close to where they live.

They started looking for their latest purchase - a two-bedroom unit, possibly with a study up to $650,000 - towards the end of last year but Etminan says the time is right to buy because ''prices have come back a bit''.

They're looking in areas that they know - Woollahra and back towards Bondi Junction, Double Bay and Darling Point, all suburbs that are close to public transport, shops and have strong rental yields and good capital appreciation, she says.

''People are talking about the market getting lower and lower but, in the price range we're looking at, I don't think it's going to bottom out,'' Etminan says. ''It seems to be a fairly stable price range and also excellent for rental returns.''

Tips for buying an investment property

Fri, 03 Feb 2012 00:00:00 -1100

So you want to buy an investment property? It's crucial to have a plan; after all, the dollar stakes are very high. You owe it to yourself to have a strategy and it should include measures, a ranking system and other investment criteria which will shape your final decision.

According to Real Estate Buyers' Agents Association president Warwick Brookes, there are several factors you need to consider, including your personal tastes and, potentially, the future requirements of you and your family. Here are some must haves:

CAPITAL GROWTH

Capital growth is closely linked to government spending. Since Federation, governments, irrespective of their political bias, have invested heavily in capital works programs designed to improve the infrastructure and amenity of the city, which in turn has attracted private sector investment. The better the infrastructure and amenity are, the greater the demand is to live there or close by, which explains why land values in some locations rise faster than in others.

So, what is infrastructure? Transport, schools, hospitals, roads, shipping, airways, public housing, water, electricity and gas etc, and amenity. Parks, gardens, shopping centres, natural attractions such as rivers, bays, mountains, private schools, commercial outlets, sports stadiums and so on are also important.

SCARCITY

According to the Macquarie Dictionary, scarcity means "insufficient for the demand, not abundant".

There are three components to scarcity; the most obvious is location. Properties closer to the CBD are far more sought after and hence, scarcer than properties in the outer suburbs where supply is virtually unlimited.

The second component relates to improvements. Well-maintained older-style properties built before 1970 are in strong demand because they can't be replaced. If that's true, then why are houses demolished? The answer is if the property is not carefully maintained and improved to meet the forever changing demographic needs of buyers, then there'll come a time where it's cheaper to build a new house than renovate the existing one.

DENSITY

The third component is density. This particularly applies to multi-unit/high-rise developments and to a lesser extent, new housing, of which there's an abundance. The greater the density, the lower capital growth. The exception is property situated in unique or highly desirable locations.

POTENTIAL

The key is the dollar outlay. It could be as simple as converting a laundry into a study, installing sky lights in a dark hallway, removing a non-load bearing wall to create more space or just removing old wall paper and repainting. It all adds value and even if you decide not to do the work, it's something you can potentially on-sell in the future.

YIELDS

Given that most residential investments purchased are for both wealth creation (growth) and tax relief or negative gearing, it's a matter of finding the right balance. Generally, properties that offer high yields are more susceptible to extended periods of vacancy and are less likely to appreciate as quickly as properties with lower yields. As a general rule, the relationship between yield and capital gain is inversely proportional; the higher the yield the lower the capital gains.

How to understand Chinese property buyers

Fri, 03 Feb 2012 00:00:00 -1100

Amanda Sun bought three houses worth a total of $3 million on the Gold Coast after visiting just once as a tourist.

Sun is Chinese, 33 years old and owns a small trading firm, according to a recent news story. She is typical of the Chinese buyers who have rescued many Australian developers, agents and vendors from deeper price cuts and longer selling times in recent years.

Less than 12 months ago, the Chinese government got a shock when the results of a comprehensive survey of high-net-worth Chinese like Sun were released. The two organizations behind the survey are very respectable, Bain & Co and China Merchants’ Bank, so the results can’t be written off as a fluke.

The survey revealed what many Australian agents had already been feeling: rich Chinese, for various reasons, want to get out of China, and they believe buying property in Australia and other countries enables their escape.

Not just a few rich Chinese want out.

A full 57% of rich Chinese have contemplated emigration. About 20% have actually completed immigration procedures in countries like Australia or expect to do so soon.

These percentages account for huge numbers of individuals, because China has the fourth-largest number of high-net-worth individuals in the world. Each year the cohort grows by nearly 10%.

Many of those rich Chinese emigrants are coming to Australia. China sent more immigrants to Australia in 2010 than any other country, including the UK and New Zealand.

Even as they sink roots in Australia, rich Chinese like Sun are also keeping a presence in China. For example, published research shows that about 80% plan to keep their Chinese passports.

It is common for the wife and child to live abroad, while the husband spends most of his time in China. Chinese émigrés might still run businesses in China.

They are usually moving abroad for their children. They believe that Western schools and universities are better than their Chinese counterparts, and that living overseas gives their children an advantage.

Foreign residency could also be useful in case China goes through policy shifts, like massive new wealth taxes, or social unrest. China is a rapidly changing country. Riots, strikes and protests recently doubled over the last five years to 180,000.

Emigration and educating children are just two of the reasons wealthy Chinese are buying property in Australia. The third is for investment.

As Sun puts it, Australia’s “legal system is better”. She plans to migrate to Australia to live in one of her new homes. She will find renters for the other two.

Australian property is an attractive investment in its own right, with credible economists predicting prices will be 55% higher in 10 years.

It also represents a diversification of risk. Instead of only investing in property in China, they put some of their money overseas so that they don’t lose everything if the Chinese property market goes down.

Buyers like Sun have made a real impact on the Australian property market. As one agent told the Sydney Morning Herald about Chinese buyers, “They're the only ones that have got the big dollars at the moment”.

The Financial Times has reported that Chinese buyers account for 20% of all purchases in Sydney. This may be an overestimate, but it reflects the trend. They tend to seek out property that has water views or is close to the ocean or major universities and CBDs.

Many developers depend on Chinese buyers for their off-the-plan unit sales. Chinese parents often buy Australian apartments for their children to live in while studying.

At the Stamford Residences, a 30-level tower at The Rocks in Sydney, one buyer recently bought a $2 million apartment to serve as this sort of student housing. In total, mainland Chinese buyers snapped up about six of the building’s 122 apartments.

In Melbourne, developer Morry Schwartz of PanUrban says, "Chinese buyers, both local and from Asia, account for about 60% of enquiries and purchases at Pan Urban's developments. That's up substantially from a few years ago.”

Meriton general manager Peter Spira told the Australian Financial Reviewthat Chinese buyers enabled the company to keep up production rates in Melbourne and Sydney through the global financial crisis.

"We build between 1,300 to 1,500 new apartments each year in NSW and south-east Queensland," Spira says.

Schwartz reckons, "You are not doing a good job at selling real estate in Australia today if you're not marketing to the Chinese buyer”.

Chinese buyers also make their mark on the higher end of the market. Just this month, a luxury penthouse at Lumiere Residences in the Sydney CBD was reported sold for $8.1 million to an Asian, possibly Chinese, investor.

But, while new developments and luxury properties grab the headlines, the overwhelming interest I see is from Chinese buyers enquiring about affordable second-hand property in good locations.