The Daily Reckoning:
There are a lot of things said about Sydney. But have you ever heard anyone describe its real estate as cheap?
Well, I did last week when I spoke to a consultant and researcher based in China, Shaun Rein. He’s also the author of two books on China. He deals with a lot of wealthy Chinese businessmen.
And he told me that for them, Sydney is cheap. That’s because real estate prices in Shanghai and Beijing at the top level can hit $20,000 to $30,000 a square metre. Even US$3 million doesn’t get you into the best part of town.
In the US and Australia it can get you a mansion on the beach.
Not only is Sydney priced OK for China’s rich, it has a thing that’s pretty rare in the big cities of China these days: blue sky.
That’s because the pollution in China is so bad it’s toxic. The air in China’s mega cities is so rancid it’s breaking world records. ‘Smog days’ are declared to keep kids from going outside, or to school.
It’s driving wealthy Chinese buyers to put their families out of harm’s way. That means buying here. And Chinese pollution is a problem, according to Shaun, that will take 10–15 years to solve.
So don’t expect the money to slow down anytime soon.
Are you looking for more experts on China´s outbound investments? Do check out this list.