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People worry about this in Australia too, which always strikes me as damn strange. If you think you're in a bubble, then the more stock you can sell at the high
by syllogism 12y ago
People worry about this in Australia too, which always strikes me as damn strange. If you think you're in a bubble, then the more stock you can sell at the high price, the better!
- staunch 12y agoLet them eat cake!
- jly 12y agoThis has also been going on in New Zealand (Auckland), heating up considerably over the last 2+ years, with all of the same concerns. California is just one more place that newly-wealthy young Chinese find as an attractive immigration destination and they are moving and buying accordingly.
- zizee 12y agoIt is a problem if it drives the prices out of reach for the local people.
- syllogism 12y agoIf the prices reflect stable fundamentals (i.e. it's not a bubble), then yeah, that'll be a problem. But if you're in a bubble, then it won't. So, the articles should be saying something like, "there's fears of a property bubble, but fortunately, we're selling a lot to foreign investors, so we're off-loading our risk". Instead they're saying, "we're in a bubble, and now it's being fuelled by foreign investment!!". Really, foreign property ownership is pretty sweet. You take their money, but are under no obligation to protect the price of their assets in your future policy. So, if prices stay strong, you can redevelop.