As oil prices suffer more sickening blows, and iron ore and coal languish, only one force stands between Australia and a serious recession -- Chinese investment in our property market. Today's announcement that Leighton is selling its John Holland business to China Communications Construction Company for $1.15 billion shows just how eager the Chinese are to get access to Australia.
And in time that investment will move more heavily into other areas, particularly agriculture and tourism.
I’ve already looked at some of the local and global side effects of the oil slump (Brace for the knock-on effects of the oil price slide, October 10), so today it’s appropriate to note that the Chinese boost to investment in real estate is a global phenomenon.
Whether it be London, New York, Melbourne or Sydney, housing markets have never seen anything like the current rash of Chinese and Asian buying.