I don't know benson, but I do know that Australians just can't seem to get enough real estate, on their tvs it's reno this reno that, and in their SMSFs especially. A few cautionary words find their way into the financial pages about spruikers, particularly those selling projects at vastly inflated prices, with sweetners like "free" scooters, free furniture packages (built into the price of course) and encouraging a very high level of borrowing....but very few seem to care.
There are a lot of developments in Melbourne which are funded by Chinese money. But frankly with the lower AUD, it's further encouragement for for foreign buyers. Other evidence is anecdotal, like suburbs like Balwyn which have a very high rate of demolition to make way for new homes being built for asian (not only chinese) owner-occupiers.
I have a friend who wants to relocate to Melbourne and I'm telling her not to rush in and buy just yet, rent and see how you feel in 12 months time. Prices might continue to lift in the short term but I see a bubble approaching from the vast numbers of unfinished projects involved. However it's been madness for a long time and it hasn't popped yet.
