As Chinese Tastes Change, Farmers Everywhere Rip Up and Replant
Kanebridge News
    HOUSE MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $1,603,134 (+0.55%)       elbourne $989,193 (-0.36%)       Brisbane $963,516 (+0.83%)       Adelaide $873,972 (+1.09%)       Perth $833,820 (+0.12%)       Hobart $754,479 (+3.18%)       Darwin $668,319 (-0.54%)       Canberra $993,398 (-1.72%)       National $1,033,710 (+0.29%)                UNIT MEDIAN ASKING PRICES AND WEEKLY CHANGE     Sydney $748,302 (+0.18%)       Melbourne $497,833 (-0.44%)       Brisbane $540,964 (-1.56%)       Adelaide $441,967 (-0.38%)       Perth $442,262 (+1.33%)       Hobart $525,313 (+0.38%)       Darwin $347,105 (-0.72%)       Canberra $496,490 (+0.93%)       National $528,262 (-0.02%)                HOUSES FOR SALE AND WEEKLY CHANGE     Sydney 10,189 (-104)       Melbourne 14,713 (+210)       Brisbane 7,971 (+283)       Adelaide 2,420 (+58)       Perth 6,383 (+298)       Hobart 1,336 (+6)       Darwin 228 (-12)       Canberra 1,029 (+8)       National 44,269 (+747)                UNITS FOR SALE AND WEEKLY CHANGE     Sydney 8,795 (-1)       Melbourne 8,207 (+293)       Brisbane 1,636 (+1)       Adelaide 421 (-4)       Perth 1,664 (+15)       Hobart 204 (-1)       Darwin 404 (-2)       Canberra 988 (+12)       National 22,319 (+313)                HOUSE MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $800 (+$5)       Melbourne $600 ($0)       Brisbane $640 (+$10)       Adelaide $600 ($0)       Perth $660 ($0)       Hobart $550 ($0)       Darwin $700 ($0)       Canberra $690 ($0)       National $663 (+$2)                UNIT MEDIAN ASKING RENTS AND WEEKLY CHANGE     Sydney $750 ($0)       Melbourne $590 (+$10)       Brisbane $630 ($0)       Adelaide $490 (+$10)       Perth $600 ($0)       Hobart $475 (+$23)       Darwin $550 ($0)       Canberra $570 (+$5)       National $593 (+$4)                HOUSES FOR RENT AND WEEKLY CHANGE     Sydney 5,364 (+80)       Melbourne 5,428 (+4)       Brisbane 4,002 (+12)       Adelaide 1,329 (+16)       Perth 2,113 (+91)       Hobart 398 (0)       Darwin 99 (-5)       Canberra 574 (+39)       National 19,307 (+237)                UNITS FOR RENT AND WEEKLY CHANGE     Sydney 7,687 (+257)       Melbourne 4,793 (+88)       Brisbane 2,098 (+33)       Adelaide 354 (-11)       Perth 650 (+5)       Hobart 135 (-1)       Darwin 176 (-9)       Canberra 569 (+14)       National 16,462 (+376)                HOUSE ANNUAL GROSS YIELDS AND TREND       Sydney 2.59% (↑)      Melbourne 3.15% (↑)      Brisbane 3.45% (↑)        Adelaide 3.57% (↓)       Perth 4.12% (↓)       Hobart 3.79% (↓)     Darwin 5.45% (↑)      Canberra 3.61% (↑)      National 3.33% (↑)             UNIT ANNUAL GROSS YIELDS AND TREND         Sydney 5.21% (↓)     Melbourne 6.16% (↑)      Brisbane 6.06% (↑)      Adelaide 5.77% (↑)        Perth 7.05% (↓)     Hobart 4.70% (↑)      Darwin 8.24% (↑)        Canberra 5.97% (↓)     National 5.84% (↑)             HOUSE RENTAL VACANCY RATES AND TREND       Sydney 0.8% (↑)      Melbourne 0.7% (↑)      Brisbane 0.7% (↑)      Adelaide 0.4% (↑)      Perth 0.4% (↑)      Hobart 0.9% (↑)      Darwin 0.8% (↑)      Canberra 1.0% (↑)      National 0.7% (↑)             UNIT RENTAL VACANCY RATES AND TREND       Sydney 0.9% (↑)      Melbourne 1.1% (↑)      Brisbane 1.0% (↑)      Adelaide 0.5% (↑)      Perth 0.5% (↑)        Hobart 1.4% (↓)     Darwin 1.7% (↑)      Canberra 1.4% (↑)      National 1.1% (↑)             AVERAGE DAYS TO SELL HOUSES AND TREND       Sydney 29.7 (↑)      Melbourne 30.9 (↑)      Brisbane 31.2 (↑)      Adelaide 25.1 (↑)      Perth 34.4 (↑)      Hobart 35.8 (↑)      Darwin 35.9 (↑)      Canberra 30.4 (↑)      National 31.7 (↑)             AVERAGE DAYS TO SELL UNITS AND TREND       Sydney 30.0 (↑)      Melbourne 30.5 (↑)      Brisbane 28.8 (↑)        Adelaide 25.2 (↓)       Perth 38.3 (↓)       Hobart 27.8 (↓)     Darwin 45.8 (↑)      Canberra 38.1 (↑)      National 33.1 (↑)            
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As Chinese Tastes Change, Farmers Everywhere Rip Up and Replant

The windfall is transforming entire regions, but some are starting to worry: What if China stops buying?

By JON EMONT
Wed, Nov 22, 2023 8:30amGrey Clock 4 min

EA YONG, Vietnam—In the verdant highlands of central Vietnam, warehouses the size of airplane hangars dominate small farming towns, bristling with mounds of tropical fruit. The bounty is destined for a colossal market: China.

Farmers are felling coffee trees traditionally grown in this cool hilly region to plant spiky durians, pungent fruits that have become wildly popular in China. They are reaping the windfall to buy new irrigation systems, pay off loans and build shiny marble facades to their homes.

“We locals aren’t just doing well, we can even be considered rich,” said Pham Van Trung, 54, as he ate a late lunch of pork and rice wine. Trung made $81,000 this year selling durian, and said the region was swarming with Chinese buyers.

China’s appetite for foreign produce has grown in recent decades along with the wealth of its consumers. The amount of food the world’s second most populous nation imports has risen to over $200 billion a year—more than any other country—from about $15 billion two decades ago, according to the World Trade Organization. Avocado farmers in Kenya, shrimp cultivators in India, soy producers in Russia and banana growers in Cambodia are all cashing in.

While economic growth in China has slowed recently and its population is shrinking, demand for nutrient-rich foods such as beef and tropical fruit has remained high.

Last year, the Chinese noshed through more than 800,000 metric tons of imported durian and nearly six million metric tons of imported meat—both world-leading totals. It bought 90 million metric tons of soybeans from overseas last year, accounting for roughly 60% of global trade, for use in making tofu and to feed the country’s hundreds of millions of pigs.

Feeding China’s massive middle class presents a historic opportunity for countries seeking to boost the incomes of people in poor, rural areas. But it also poses a quandary: how to tap in to its huge market without becoming dependent on a trade partner that can be fickle.

In recent years, China has restricted imports of Norwegian salmon, Taiwanese pineapples, Philippines bananas and Australian lobsters. It usually cites contamination, pests or issues with quality—but Beijing’s curbs have also often coincided with political disputes.

China slapped hefty antidumping duties on Australian wine exports in 2020 after Australia called for an independent probe into the origins of Covid-19. In 2012, China halted purchases from banana growers in the Philippines, saying mealybugs had been discovered in shipments, after a flare-up between the countries in the South China Sea.

“With the size of the Chinese economy, it can always use trade to punish an exporter,” said Yun Sun, director of the China program at the Stimson Center, a think tank in Washington, D.C. Selling to China is “an opportunity, and it is a risk,” she said.

The risk is higher because when the chance to export to China’s massive market opens up, often entire agricultural belts go all in. This can lead to what Sun calls “singularification,” or the concentration of a local economy around one product, making it vulnerable to disruption.

Vietnamese farmers are felling coffee trees to plant durians for export to China. PHOTO: JON EMONT/THE WALL STREET JOURNAL

That is what appears to be happening in Vietnam’s central highlands. The region is famed for its Robusta coffee, which is sold around the world. But last year, Beijing opened the gates to large-scale imports of Vietnamese durian—and farmers here began uprooting their coffee crops. Traders flocked to snap up the produce, causing local prices to more than double this year.

Be Duc Huynh, a 26-year-old farmer who got rid of his entire coffee crop, said he makes about five times as much from a hectare of durian as he earned from coffee. He harvested four tons of durian this year, up from one ton last year—all of it destined for China.

China buys around 90% of durian exports from Vietnam, which also sells much of its dragon fruit, bananas, mangoes and jackfruit to its giant neighbour. In recent months around 60% of Vietnam’s fruit and vegetable exports have gone to China, up from one-third a decade ago, according to official figures compiled by data provider CEIC.

During the autumn harvest time, the village air carried the sharp smell of the fruit. Families stacked mounds of durian in front of their homes to entice traders, who thwacked the durian shells with knife handles to test for quality. Hard means it is too young; soft means it is ripe and can sell for a higher price.

On a recent afternoon, durian trader Nguyen Thai Huyen dug into the flesh with her painted-pink fingernails, tasting bits of durian to determine their ripeness. Huyen posts snappy videos on TikTok of her visits to plantations and the mountains of durian she has on offer.

“A few years ago people considered durian a crop to reduce poverty,” she said. “Now it is the million-dollar crop.”

She has tried selling to Japan, but said buyers there only take small amounts. She isn’t especially worried about being too reliant on China, though. She says durian’s popularity has room to grow in the country, where many are still unfamiliar with the fruit.

Vietnam’s government is less certain. Earlier this year the agriculture ministry issued a warning about what state media called reckless durian cultivation, saying many farmers were abandoning traditional crops such as coffee and rice and planting durian in areas unsuited to it. Agriculture experts cited in state media have encouraged farmers to develop alternative markets to China and try to sell more of their produce locally.

Traders say that is easier said than done. The fruit has few takers outside of the region, and recent high prices put durian out of reach of many local Vietnamese.

Still, farmers say they want to be careful. In September, some fruit exports including durian were halted after Beijing complained about mealybugs and other pests. It reminded farmers of a major disruption in January 2022 when truckloads of Vietnamese produce rotted after China sealed off its southern border to contain the spread of Covid-19.

H’Meng, a farmer who goes by one name, has planted hundreds of durian trees in recent years. Now, she said, she is planning to grow more coffee. The prices are more stable, she said, because the market for coffee isn’t focused on one nation.

“I’m worried about becoming too dependent on China,” she said.



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How much income is required to service a mortgage? It depends on where you live

New research suggests spending 40 percent of household income on loan repayments is the new normal

By Bronwyn Allen
Thu, Apr 25, 2024 3 min

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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