Home Australia The Australian Property Bubble (2015), Foreign Investment and Dr Day (1969)

The Australian Property Bubble (2015), Foreign Investment and Dr Day (1969)


danger houseA few months ago a knock-down home in Middle Park, Melbourne, sold for almost $1.8 million over its reserve price, smashing expectations and selling for A$4.51 million. It is a bay front property, but it represents the craziness that is the housing market in Australia.

208208 Beaconsfield Parade. 

Australia doesn’t seem to make stuff anymore. It is a land of baristas, tour guides, hoteliers, foreign fruit pickers… and politicians. For the moment, the gentry just need to own houses – and then sell them to foreign buyers. But then what?

A Vietnamese associate, who dabbles in Melbourne property, told me a few months ago that the Chinese government was secretly funding individuals to come and buy up Australian real estate. He was “told”  of groups of buyers – 40 at a time – would be loaded onto buses to scout specific suburbs and go on auction bidding sprees. He claimed that the Australian government were aware of this, but remain silent as they are concerned about rocking the buoyant market – and the “asset” that keeps our economy functioning. True? I have absolutely no idea. It is second hand information.

But even way back in March 2014, a Sydney Morning Herald (SMH) articleCashed-up Chinese are pricing the young out of the property market, reported that:

“(a survey found that) …one-third of affluent Asians own overseas property, and Australia is their number one destination.”

Another SMH article (7 May 2015) – China’s $60 billion Australian property splurge – forecast that Chinese buyers will to pump $60 billion into the market over the next six years. “Pump?” Would “wealth transfer” be more appropriate.

In The Australian (16 Oct 2014) they reported:

Chinese investment is flooding into Australia’s dairy industry, with four multi-million-dollar mega-deals in progress that are likely to see Chinese state-owned companies taking big stakes in all Australia’s largest dairy farming operations. In western Victoria, about 50 dairy farmers have signed individual option deals to sell their farms, worth a collective $400 million, to a secretive ­Chinese-dominated dairy conglomerate…  The 50 farms together run 90,000 cows producing 500 million litres of milk a year.

To slightly sidetrack, now the big winner in the Free Trade Agreement with China is the Dairy Farmer. An ABC (18 Nov 2014) headline:

“Free trade agreement: Dairy farmers set to be big winners in deal between Australia and China”.

Then a 23rd June Age headline

Corrupt Malaysia money distorts Melbourne market.

“…Australia has become an investment hot spot for the crooked and corrupt.” (Age article here)

And in today’s Daily Telegraph, Legal loophole lets foreign ­investors snap up huge numbers of older Sydney homes

Wealthy overseas investors are taking advantage of Australian ownership rules and buying up huge numbers of Sydney homes. And that this directly contradicts the claims by politicians and the property industry that foreigners are restricted to buying newly built homes only.

Macrobusiness.com.au writes about the Gen Y perspective on the property bubble (12 June 2015):

“Hockey and Abbott cannot pull the veil back down over the hideous monster that is Australia’s 16 year long housing bubble. That veil has now been permanently lifted. The cat is out of the bag and roaming the remorseless realms of the internet meme, destined to immortalise 2015 as the year Australia woke up to the giant private debt and housing parasite leeching the country of prosperity, equality and egalitarianism.”


Australian housing has been in a nation-wide bubble since 1999, when John Howard cut the capital gains tax rate on residential property. Combined with falling interest rates, this set off an orgy of speculative investment, where speculators predictably saw the combination of negative gearing and capital gains tax concessions as the perfect tax shelter and a government sponsored get rich quick scheme.”


“…at the heart of the problem is always the cost and availability of debt.”

The article goes on:

“…economists, journalists, politicians and the landed gentry that they represent, who occasionally advocate for housing reform and solutions to housing affordability, are asking the next generation of Australians to assume all of the risks of the massive imbalances in the housing market, while ensuring that the market is held up long enough for them to pass on that risk.

…What a conceited set of leaders and commentators we have. I vainly hope for royal commissions and criminal charges to be laid in some not-so distant future when our livelihoods have been destroyed by the peddlers of Australian real estate who do know better.”

There has been talk about the Australian property bubble for a decade or more – and many predict a demise at some stage. But maybe with foreign investment Australian real estate might be buoyant and bubbling for many years to come? (…until much of Australia is under foreign ownership?)

“No worries” – our politicians are looking after your best interests.

But I just don’t know how the average person can purchase a home without becoming a slave to (banker’s) debt. I have suggested in a satirical article – We Need Aussie ‘Bantustans’ – that setting aside cheap enclaves for the “second class” citizens to build shack dwellings at super low cost is an option.


It is interesting to reflect on what Dr Richard Day had to say in 1969 (full article here). He predicted home ownership would be a thing of the past. Many of his other “predictions” have come true – but this one hasn’t really happened (yet). Australians still desire to own their own home and will go to extraordinary lengths (and debt) to do so.

Dr Day, “Everything Is In Place And Nobody Can Stop Us Now”

So what did he have to say? These are the recollections of Dr. Lawrence Dunegan (recorded in 1991) of Day’s lecture on March 20, 1969 at a meeting of the Pittsburgh Paediatric Society. At the time, Dr Day was Professor of Paediatrics at Mount Sinai Medical School in New York and had previously served as Medical Director of Planned Parenthood Federation of America’. This is what Dunegan recalled of the lecture:

“Home ownership a thing of the past.

Privately owned housing would become a thing of the past. The cost of housing and financing housing would gradually be made so high that most people couldn’t afford it. People who already owned their houses would be allowed to keep them but as years go by it would be more and more difficult for young people to buy a house. Young people would more and more become renters, particularly in apartments or condominiums. More and more unsold houses would stand vacant. People just couldn’t buy them. But the cost of housing would not come down. You’d right away think, well the vacant house, the price would come down, the people would buy it. But there was some statement to the effect that the price would be held high even though there were many available so that free market places would not operate. People would not be able to buy these and gradually more and more of the population would be forced into small apartments. Small apartments which would not accommodate very many children. Then as the number of real home-owners diminished they would become a minority. There would be no sympathy for them from the majority who dwelled in the apartments and then these homes could be taken by increased taxes or other regulations that would be detrimental to home ownership and would be acceptable to the majority. Ultimately, people would be assigned where they would live and it would be common to have non-family members living with you….”

Note to self: I wonder if any of the politicians in Canberra have heard of Dr Day’s lecture?

But talking about “bubbles”. Canberra is operating in an alternative reality – fed by a cocktail of mainstream media and a squeeze of corporatism. It would be easy to legislate foreign ownership to give local Aussies a “fairer go” at owning property – but that would be like turning off the hot tap in a bath. The existing investors would start shivering.

Posting an old video we did in 2013.  (And about selling Australia – go to 10.10)


  1. Our Federal politicians have been betraying Australia for the Globalists since prior to 1975.
    Look up the ten minute video ‘The Lima Declaration 1975′ as well as the Dr. Day address in 1969. The msm are hiding the truth.
    See the big picture, see Day’s observations on who will be allowed to have knowledge. Then note that about 95% of the msm in the US is completely controlled by 6 globalist corporate propagandists.
    Then those treasonous politicians and the MSM make a mockery of our soldiers who were sacrificed for our sovereignty by having the gall to attend ANZAC day remberance ceremonies and massage their egos about sacrifice.
    F..’n hypocrites who we pay for!!!!’ They should be banned from AMZAC day ceremonies.
    Australia; wake up they are screwing you and your; children’s future, independence and freedom.
    If Australians ever wake up, they will be told: “So sorry, we now own Australia, it was all arranged, you go now and turn on TV.”

    • So where are you Mr. Scott of ‘our’ ABC?
      You claim to be not owned by government, then prove it, do your job.
      BTW, 911 was an inside job. Tell your Faine.

    • Ned, IMHO, you are dead right. However I do think it’s rather unfair to criticize the Chinese. It is not them, who have allowed this to happen. If it’s not them buying up Australia, (which IMHO, is up for sale at bargain prices) it’ll be the Malyans, or Singaporeans or someone else.
      Can any Australian buy a home in any of the above countries ? Answer = NO ! Another question, why not ? Answer = Because these countries are doing what they have been elected for, running their countries for the benfit of THEIR Citizens.
      Whereas Australian politicians run this country to benefit the 1%, and to hell with the rest of all Australians.
      Regards the housing issue, fortunately I’m old enough to recall clearly and vividly the G.F.C. when it hit the first time round, many of my fellow work mates were planning their retirement, (most came on the job after WW 2) and were in the throes of planning their finances to carry them thru until they dropped off the perch, very few planed on relying on the Govt Pension.
      Many of them had invested their funds via Wall Street, so I need not go on, what happened to their hard earned funds, other that shonky shiesters took off with the lot and left the cupboard bare.
      Now those same retirees had no other option, but to go on the Pension the Government keeps telling us, they cannot afford.
      The rest of my fellow workers saw what happened, and immediately withdrew what funds they had left and invested it ALL in………….. BRICKS AND MORTAR, saying even if Wall Street does go down again, at least we can see what we own and the shonky money grubbing pigs on Wall Street won’t be getting their hands on it.
      THAT was the start of the housing boom, and it’s carried on ever since. It could be slowed down by the Govt abolishing the capital gains tax, but that would hit a lot of the Government workers, and the politicians as well as all their friends and cronies too, so the chances of that happening are ZERO.
      On the other hand, we could pass laws similar to Malay’s and Singapore’s wherein no one other than an Australian citizen can own Australian land, but here again, I strongly suspect our politicians would avoid that like the plague, as many of them would then stand to loose money as they have too much invested in the game, so that won’t happen either.
      At the end of the day, IMHO, the folks who really stand at fault for this situation arising, would be the ordinary folk of Australia, it is THEIR VOTES, that have put these clowns into power, it is THEIR VOTES that have allowed these folks to introduce laws allowing the fire sale of Australian land.
      It is ONLY THEM, that can change this situation, by firstly UNDERSTANDING what’s happening around them and why.
      They MUST then realize without their input, nothing’s going to change. They must lobby their Parliament representatives, advise them STRONGLY of their concerns, TELL THEM straight, unless their representative does something concrete, like reversing the laws to Australian owners only, they WILL BE KICKED OUT away from the lucrative pigs trough at the next election. That’s a FACT !
      How many Australians would have the back bone to do this IMHO ? Very few indeed.
      So I guess it’s like my departed Mum used to say, “Toughen up Princess, it’s going to get a lot harder yet”.

      • Eddy,
        No doubt ‘our’ Mr Scott will invite you to his program to ask Mr. Turnbull or some othe pollie boffin ( try our Mr. TPP ‘globalist’ trade minister) to address your thoughts and explain.
        Then the Q and A mob (our ABC) might have some discussion on current significant concerns for our democratic country over and above some patsy teenager spruiking terrorism crap, as forecast by Dr. Day as an invention to make societies ‘conform’ to their globalist agenda.
        Hey people, look up Dr. Day on the necessity to introduce terrorism, there is a whole section on it. Then realise that we have been suckered by our complicit msm and public broadcaster. Our politicians must be in on the game or perhaps otherwise, they are with the ‘terrorists’ . Be it unwittingly, compromised or dumb and who represent 0.001+ of the controlling world spivs.

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