Chinese cities pull global luxury property prices higher as taxes bite elsewhere

on May8

Apartment blocks stand in the suburb of Meadowbank in Sydney, Australia, on Sunday, Jan. 8, 2017.

Brendon Thorne | Bloomberg | Getty Images

Apartment blocks stand in the suburb of Meadowbank in Sydney, Australia, on Sunday, Jan. 8, 2017.

The aggressive growth of house prices in the so-called ‘Lucky Country’ has seen those in its largest city, Sydney, move up by 70.3 percent in the past five years as compared to movement in the average Australian wage which has edged only 13.2 percent higher, according to data crunched by Ben Phillips, an associate professor at the Australian National University.

The country is among several considering measures to make it more difficult for foreigners or speculators to buy, with the success of Vancouver’s imposition during 2016 of a 15 percent tax on foreign buyers reflected in the slowdown seen in its pace of growth in this latest report.

Policymakers in another Canadian city, Toronto, have recently copied the measure in the hope of cooling growth there, where prices have raced up 22.2 percent in the past year, shooting the city up to third place.

Elsewhere, tinkering with taxes has likely impacted Singapore’s ranking – where a reduction in stamp duty from 16 to 12 percent has accompanied a rise back up the list – and London’s where high levels of stamp duty, alongside affordability, are often cited as a key factor behind the 6.4 percent fall in prime residential prices in the past year.

Follow CNBC International on Twitter and Facebook.



Previous postSurvivors of DMS shifts tell their tales Next postIn L.A., teens balance high school with planning in case their parents are deported

Leave a Reply

Your email address will not be published. Required fields are marked *



Los Angeles Financial times


Copyright © 2020 Los Angeles Financial times

Updates via RSS
or Email