Real estate is in a downturn, Australia's economy is in trouble! Are Chinese investors evacuating?

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Real estate is in a downturn, Australia's economy is in trouble! Are Chinese investors evacuating?

2019-02-18 18:32:03 67 ℃

According to Morgan Stanley's analysis, due to the financing difficulties caused by the tightening credit environment in Australia, the real estate market is heading for a downturn. Under the combined effect of these factors, the Australian dollar is likely to fall into crisis. This trend can be seen from the frequent actions of consumers who have become more cautious in the past three months and the Federal Reserve of Australia. Morgan Stanley also said that the current price forecasts for the Australian dollar are at the bottom of market expectations.

Australia's economic plight has a lot to do with the downturn of real estate and retail industry, especially the local property market is facing great challenges. According to < strong > data, the overall decline in Australian housing market in November 2018 was the largest since the 2008 financial crisis, and vacancy rates in Sydney and Melbourne, two core cities, also surged 19% and 15% compared with five years ago. The Australian economy has been growing for many years, and the crisis is largely due to the departure of Chinese buyers. Thanks to the loose investment policy and the strong performance of the Australian dollar in recent years, the Australian real estate industry is favored by Chinese investors. But in 2018, with the Australian dollar weakening and the credit environment shrinking, Chinese buyers have to tighten their wallets. According to KPMG's report, Chinese buyers'investment in Australia fell 11% last year compared with the same period last year. Australia is in a serious liquidity crisis. The impact of the liquidity crisis of

is multifaceted, and even the strong local retail industry can not escape the bad luck. Myer, Australia's largest department store, and Cloes, an old-fashioned food supermarket, are experiencing operational crises and even need to close some stores to stop losses when profits fall. Therefore, the withdrawal of Chinese investors can be said to be a pull-in and an important factor in the crisis of Australia's economic collapse.

Although Chinese investors are well-known in the world, with the complex situation of the world economy, the direction of investment has become very unstable. If Australia wants to get out of the predicament as soon as possible, it is imperative not only to recover China and other major investors as soon as possible, but also to improve its economic structure and reduce its dependence on foreign investment.