The Ray White – China deal

Written By: - Date published: 7:32 am, July 30th, 2016 - 87 comments
Categories: business, capitalism, Ethics, housing, International - Tags: , , , , , ,

Speaking of the housing crisis:

Ray White signs deal with Lianjia as it launches into China

Ray White has expanded its agency services to China, signing an agreement to list new and old properties for sale with China’s largest real estate agency, Lianjia, also known as Homelink.

Lianjia, which has more than 6000 branches in over 25 cities in China, will co-list Ray White’s New Zealand and Australian and properties in Mandarin on its websites.

The exposure to Lianjia’s audience – about 260 million Chinese buyers – will provide Ray White with the leverage into China and, more importantly, fulfil the organisation’s strategy of becoming more diverse and a brand that is more attractive to the Chinese community. …

The move has, unsurprisingly, attracted some criticism, see Politicians slam deal for more NZ house ads in China, and ‘You suck Ray White’: Kiwis threaten boycott after agency signs deal with Chinese company, and Labour’s response reported here. The company responds:

It’s not up to us to make a moral decision on foreign ownership

Ray White says marketing New Zealand and Australian properties to Chinese buyers is “nothing new” and it is up to the government to put a stop to it, not the real estate industry. …

Spoken like a good capitalist, and exemplifying all that is wrong with unregulated capitalism. So OK then, ball’s in your court National. Now what?


Bonus explaining from RW:

We understand your concern and we would like to reassure you that our Australian-led partnership with Homelink, also known as Lianjia, is not designed to sell off more New Zealand homes to foreign buyers.

The partnership is a move made in response to the increasing globalisation of the real estate industry. Many of our customers, particularly in Australia, have been requesting this type of marketing opportunity for some time.

Well past time to stop digging.

87 comments on “The Ray White – China deal”

  1. Wensleydale 1

    “…is not designed to sell off more New Zealand homes to foreign buyers.”

    Of course it fucking is. What other possible reason would they have for doing this? Charity? Whimsy? They lost a game of paper, scissors, rock?

    It’s the lying that’s so hurtful, Ray White. The lying.

    • Leftie 1.1

      Ray White are being contemptuous, and are insulting New Zealanders with that obvious lie. It’s bad enough that we get treated like that every day by the compulsive liar John key, and his won’t do anything National government.

    • mosa 1.2

      Ray White have been taking lessons on how to deny the bleeding obvious from our esteemed PM.

  2. Tony Veitch (not the partner-bashing 3rd rate broadcaster) 2

    We bought our present (and only) house from Ray White, and have been regularly emailed with property updates.

    I have unsubscribed from the emails, and sent a terse message to the company explaining why I did so.

    If we are ever in the position of having to buy another house, we certainly will not be using this company to sell or buy while they market NZ property in China (or anywhere overseas).

    I lived in China for over three years and there was never any possibility of buying an apartment in the city where I was resident.

    Why are we so damned intent on becoming tenants in our own land?

  3. Stuart Munro 3

    Although it is the government’s problem, there is nothing wrong with boycotting Ray White until the government takes action.

    • weka 3.1

      +1

      I sense an Action Station or similar coming on too. Boycotting alone is tricky if RW are the sole lister for the house you want to buy in a housing shortage market. But certainly people selling a house can choose a different agent and that should be circulated widely.

      (cue accusations from the right of suppression of free speech and free trade 😉 )

    • mosa 3.2

      Stuart this government WONT take action because Key would have shares in Ray White through his blind trust you can bet on it and will be more than supportive of the move into China.

  4. ianmac 4

    National cannot act to change the rules about oversea purchase because this was what Labour were suggesting months ago. Ray White is home free and with National blessing.
    Unless they changed the rules to make it new homes only.

    • Rae 4.1

      On the new homes only thing for foreigners, I would like that rule defined as well, to state one new home only, for themselves, no renting, we need zero foreign landlords, especially when so much money to pay rents is coming out of the public purse. I wonder what other country hands out welfare to foreigners?

  5. weka 5

    “It’s not up to us to make a moral decision on foreign ownership”

    Ok, so Ray White has just declared itself to have no ethical responsibilities. Good to know.

    Of course I’d argue that it is up to them to make a moral decision (and I think they have taken a moral position otherwise they wouldn’t even have made that statement). if one thinks the government is a parental figure and the teenager’s job is to get away with as much as possible until the hard word comes down, then I can see why they would see themselves as being free to act amorally. But if government are the servants of the people and the best/easiest system we have currently for managing our collective resources and society, then why would we all not have a duty to make moral decisions. It’s not like the government is perfect or always gets things right or always has our best interests at heart.

    tl;dr RW, disingenuous as fuck.

    • AB 5.1

      Yep they have taken what amounts to a moral decision in deciding that the company is not required to make moral decisions.
      It’s a common and weird belief that somehow businesses don’t have the moral obligations of individuals.

      • AmaKiwi 5.1.1

        Corporate managers MUST by law work to increase profits by whatever legal means they can.

        This is the central problem with capitalism. Shareholders will sue management for any actions which are not specifically aimed at maximizing the shareholders’ return on their investment.

        How do we change it?

        • Brigid 5.1.1.1

          No, that’s not entirely correct

          “Section 131 Companies Act 1993
          A director must act in good faith and in what they believe to be the best interests of the company.”

          https://www.business.govt.nz/companies/learn-about/compliance-requirements/directors-key-responsibilities

          Unless it is written specifically in the constitution the Director is not obliged to ” increase profits by whatever legal means they can.”, just keep the company in good health and not act illegally.
          And actually the director has is no greater obligation to shareholders than it has to employees.

          • AmaKiwi 5.1.1.1.1

            Thanks, Brigid. I agree.

            Company directors work exclusively for their shareholders. They have NO obligations for humanity and the planet.

  6. Keith 6

    Capitalism, pure and simple, based on profit, greed and maximising returns to investors. And who in this government or those who vote for it argue? I mean it’s not as if Real Estate companies are bastions of decency, ethics or morals!

    It’s only when this parasitic disease starts killing it’s hosts as it surely does, do it’s subcribers start wailing for collective state welfare intervention that they hither to hated and looked down upon!

    • miravox 6.1

      “Capitalism, pure and simple, based on profit, greed and maximising returns to investors.”

      It’s not as if that many of the big players in the industry are still fully NZ-owned either. Off-shore services repatriating profits to the home countries. In a sense I have a bit of ambivalence about the Ray White deal (if it’s still fully NZ-owned). The company is only doing similar to international companies have done in NZ, but in reverse, i.e. making global profits. As you say, “it’s not as if Real Estate companies are bastions of decency, ethics or morals!”

    • mary_a 6.2

      Cheers Keith (6). Agree 100% with your sentiments re this contemptuous issue.

  7. RedBaronCV 7

    All any government in waiting can do is to make it very very clear, that this type of sale is going to come back to bite the buyer and remove them when they become the government. And I don’t even favour a new home build – it’s still costing us taxpayers and ratepayers megadollars in infrastructure costs – and who needs swathes of empty housing disrupting our communities.

  8. Kelly-Ned 8

    Is deciding not to sell NZ to foreigners a moral decision at all?
    Isn’t it purely common sense not to sell of your country’s most irreplaceable asset?

    • Stuart Munro 8.1

      Yes.

      Another nail in the coffin of the “Gnats as competent economic managers” trope. They don’t know, or care, about the consequences of their actions.

      • I really hope so Stuart but I’m afraid the great unwashed still think” Key is the man'” I just cannot understand it. However the next gallop poll may be interesting ,but I’m not expecting a change. I had an old socialist friend,way back, who told me the public only throw the Tories out when the general public has really suffered .

    • AmaKiwi 8.2

      It depends whose interests come first: mine as an individual or society’s.

      What is best for the individual is not necessarily what’s best for society, and vice versa.

      Another capitalism “big lie” – – – what’s best for the one is best for the other. It isn’t necessarily true.

  9. Graeme 9

    Not sure that Ray White are leading the market here, rather catching up. I had to find an agency to sell a property in Auckland a few years ago, most had their “extensive overseas connections, and marketing footprint” as a major part of their pitch. I most cases this turned out to be a marketing “extra” that cost heaps. We actually ended up with Ray White because they had the most realistic local marketing plan.

    On a more cynical note. An attempt to bring less informed buyers into the market so local investors can exit with the cash? There are some upsides to foreign investment…..

    • weka 9.1

      “An attempt to bring less informed buyers into the market so local investors can exit with the cash? There are some upsides to foreign investment…..”

      What do you mean Graeme?

      • Graeme 9.1.1

        Find some sucker to buy the property just before the market crashes.

        Eventual result, cash is in New Zealand, property is in New Zealand and worth considerably less, debt / loss is somewhere else. There’s other permutations of this depending on who’s being smart or greedy.

        Not pretty, but it’s where it’s going, and probably quite soon.

        • Pat 9.1.1.1

          the world is full of paupers who thought they could pick the the timing of a crash

          • Graeme 9.1.1.1.1

            And I know more than a few who got it pretty much spot on. Those that come a gutsa are usually the ones who are saying it’s never going to end, or think they can do one more big deal, or they are naive folk with little knowledge or experience of the market they are playing in.

            But it’s reliance on this sort of speculation / gambling that has got our country into the shit that it’s in. We’ve gone from a country that used to pay it’s way by growing or making things that we sold to the world, to one where we make our living by selling the same house for more and more. We have a speculative economy, not a productive economy. And we are speculating on the houses we need to live in.

            • Pat 9.1.1.1.1.1

              “Those that come a gutsa are usually the ones who are saying it’s never going to end, or think they can do one more big deal, or they are naive folk with little knowledge or experience of the market they are playing in.”

              …in other words , most of them…..particularly in light of the fact the conditions driving this bubble are unprecedented.

        • weka 9.1.1.2

          Ok, makes sense, not sure it’s an upside though :-/

          • Graeme 9.1.1.2.1

            Like I said, not pretty.

          • Tony Veitch (not the partner-bashing 3rd rate broadcaster) 9.1.1.2.2

            No, it doesn’t make sense at all. Most of the Chinese buyers will be looking for a safe place to park their money, ahead of the perceived inevitable collapse of the Chinese economy.

            A drop in value, even up to 40 or 50% is largely irrelevant – whatever happens, the property remains!

            • Rae 9.1.1.2.2.1

              Trouble is, you point out the different motivation of Chinese buyers, which is due, in no small way, to their political system, you get labeled a xenophobe.

  10. RedLogix 10

    One thing for certain, Ray White know perfectly well the Govt isn’t going to do anything about it either. Chinese bidders with suitcases full of cash probably don’t vote Labour (or Green).

  11. Leftie 11

    New Zealanders can’t buy property, land and houses in China. No foreigner can.
    China knows to protect it’s own assets from foreign speculators.

    • AmaKiwi 11.1

      So do most countries.

    • ropata 11.2

      New Zealanders can’t buy property in Auckland either. First we were priced out by dirty money, now we are being shut out completely by foreigners taking over the real estate agencies.

      • Brian Smith 11.2.1

        Most of that money is still dirty money if you understand the concept of ‘Guanxi’ in China, and the role that their public servants (including Police/army) play in businesses being successful!! Auckland, the great laundromat of the south pacific!

    • ropata 11.3

      I suspect this open slather policy for foreign buyers is all that’s keeping our economy afloat. Without this bubble pumping up the numbers, we would have been in a recession. Large segments of NZ (teachers, cops, nurses) are already feeling it, thanks to chronic inequality.

      • Leftie 11.3.1

        “open slather policy for foreign buyers is all that’s keeping our economy afloat” that and uncontrolled migration into the country.

        That’s what key is counting on going into next year’s election before it all implodes.

    • ropata 11.4

      China has the National Party over a barrel. “Keep selling off bits of your country or we will stop buying your milk” is probably the veiled threat

      • Leftie 11.4.1

        That too.

      • Draco T Bastard 11.4.2

        Thing is, no country should be able to make that threat. Not selling to them should make no difference to us at all.

        • ropata 11.4.2.1

          Agreed. FTA’s are a giant ripoff benefiting only the 1%, spreading inequality and exploitation around the globe. The elites love it, considering themselves enlightened global citizens.

          Our economy is smoke and mirrors, our brief dream as an independent nation is over. We are a bauble for global superpowers and a tasty plum to be taken over by the super rich.

          Not that we had much choice, both main parties have been successful in their ongoing campaign to sell NZ to the world.

          • Leftie 11.4.2.1.1

            John key has been doing back door deals around the FTA that has given China more favour and power over New Zealand.

            Only just recently he did some tinkering to appease China in response to his pro stance on the US TPPA. Now China is pushing for their own version of the TPPA. New Zealand is being sandwiched as John key plays both sides. It’s an unsustainable and untenable position for New Zealand to remain in. Something is going to give.

  12. Venezia 12

    Over the last year, I have noticed Real Estate companies (other than Ray White) marketing in China. Harcourts for one, but others are international companies operating here to domestic market. It is open slather. John Key’s statements about NZers becoming “tenants in their own land ” indeed!

    • ropata 12.1

      I guess that was the plan all along. FJK is a member of the 0.01% and his allegiance is to his peers in the global bankster club, not to the confused hobbits of NZ

  13. adam 13

    Ray White, heros of corporate solipsism

    Don’t begrudge the returns for us

    PLA money everywhere

    South China Seas – Shush, shush, shush

    Commissars on all the farms

    End the stately balancing act

    Now we can just throw the dice, and be like mice in a crashing car

    Ray White, standing up for cupidities call.

  14. Paul 14

    Go to a Barfoots auction.

  15. Chooky 15

    Well all of this is no surprise… the warnings have been there for sometime…the Government must LEGISLATE against and Opposition parties jump up and down or we will become a province of China…this is THE election issue!

    ( despite denials from the politically correct Greens and accusations of “crude racial profiling” over the Auckland housing crisis depiction by Labour …and certain others here who cry out loudly “racism!” …it is very clear now that little New Zealand is in danger of being swamped and we are selling our childrens’ birthrights)

    http://www.smh.com.au/business/comment-and-analysis/wall-of-chinese-capital-buying-up-australian-properties-20150628-ghztdf.html

    http://www.smh.com.au/business/property/chinas-little-emperors-prop-up-aussie-housing-with-parents-aid-20160330-gnun67.html

    http://www.smh.com.au/business/the-economy/chinese-property-investors-getting-wary-of-buying-in-australia-20160519-gozd5s.html

    • RedLogix 15.1

      …the Government must LEGISLATE against and Opposition parties jump up and down or we will become a province of China…this is THE election issue!

      I’ve just spent two weeks working in a SE Asian country where exactly this is even more advanced. Their govt is now totally beholden to China and is giving away vast leases to Chinese businesses to essentially strip mine. Sand mining, huge monocultural plantations and the like. They completely shut out the local villagers from their traditional forest access. Poverty and malnutrition are appearing where there was none before.

      Same basic mechanism is happening here. Many years back I predicted this; that China wouldn’t necessarily expand it’s empire militarily, it would use capitalism against us, sell us drugs and then buy us out.

      • Leftie 15.1.1

        Was told recently that there are now 5 Chinese banks operating in New Zealand, and they don’t lend out in thousands, they lend out in millions. Kiwis don’t have a chance.

        • Colonial Viper 15.1.1.1

          It’s time for us to curtail/eliminate the activities of foreign banks in NZ.

          • Chooky 15.1.1.1.1

            yup that is one thing that should be done…we have got to take back control of our own economy

      • Jack Ramaka 15.1.2

        Drug shipments have definitely increased since the mass Asian immigration to NZ, they are using the existing NZ gangs to distribute the drugs and I would guess the proceeds are invested in the Auckland housing market.

  16. fisiani 16

    How dare Ray White advertise to people with Chinese sounding names.

    • One Anonymous Bloke 16.1

      When the bubble bursts, who will carry the losses? Not people who can’t afford their first home, that’s for sure. Not the banks: they always get paid.

      Nah. Whoever ends up holding the hot potato. Pass it on.

      • ropata 16.1.1

        Watch for FJK to make some ridiculous bailout deal for his banking buddies, the Kiwi taxpayer will be stuck paying off someone else’s debt for 50 years

    • ropata 16.2

      Most countries with any dignity or self respect defend their LAND to the death.

      Not NZ though, we have snakes like fisiani for whom money is the measure of all things.

      Food, clothing, shelter, children, it’s all for sale!!

      You sir, are a pillock

    • Leftie 16.3

      Of course they have Chinese sounding names Fisiani, Ray White is marketing to Chinese buyers living in China.

  17. Jack Ramaka 17

    Chinese Nationals want to get their funds to a safe haven which is what New Zealand is, houses are tangible assets hence this is why they are investing in New Zealand.

    Also with the weight of numbers and volume of cash coming into the New Zealand market houses can only go north, gone are the days of houses for people to actually live in, the Auckland Housing Ponzi Scheme is rocking onwards.

  18. fisiani 18

    Chinese people are human beings. The law does not discriminate against them. Sad to see so much barely disguised racism masquerading as nationalistic concern.

    • Draco T Bastard 18.1

      There’s no racism as you well know. This comment of yours is no more than you’re usual Concern Trolling.

      Yes, Chinese are human as are the rest of us. That doesn’t give them the right to buy out our land and resources leaving nothing for us. They have their own.

      • fisiani 18.1.1

        “leaving nothing for us” And you really don’t realise how racist that comment is.

        • Sabine 18.1.1.1

          bwhahahahahahahaha

          you so funny mate

          how dare new zealanders want to buy a home in their home country, don’t they now these silly new zealanders that with voting for the John Key National Party led government they voted for a brighter future for non resident and non citizens to buy up their land one quarter acre at a time.
          silly new zealanders not wanting to sell their home country. silly silly new zealanders.

      • ropata 18.1.2

        fisi conveniently forgets the basic rights his fellow human beings in hus greed for foreign cash. People (usually poor,brown) are sleeping in cars and garages because of pricjs like him.

        but fisi bravely sticks up for the rights of rich foreigners

        • fisiani 18.1.2.1

          If you prick a rich foreigner do they not bleed? Change some of the comments above from Chinese to Jewish and the blatant racism is all too clear. Is it any wonder that the fastest growing political group in New Zealand is the Blue Dragons.

          • Leftie 18.1.2.1.1

            Prick an ordinary New Zealander, do they not bleed too? But what about New Zealanders Fisiani? they’re human too.

            Is Ray White and China’s largest real estate agent Jewish? Why do we have to change the facts to suit you Fisiani?

            Blue Dragon Children’s Trust is a political group?

          • Sabine 18.1.2.1.2

            i think you are way out of line here and should re-think your comparison of people not wanting their land sold to the highest bidder vs a people that get slaughtered by the millions, had their belongings stolen from then down to the gold teeth in their mouth, had their clothes taken from them, their hair shoven, their shoes taken away, their suitcases filled with what ever they could pack in the middle of the night taken away from them, to then being locked up, starved, beaten, raped, used as humans guinea pigs, worked to death, and marched to death.

            I think it is time that you bid us good night and go to sleep. I don’t think you really have anything to add of value.

            Or to say in good german, you dear Fisian are a Scheisskerl and a Schweinehund.

            • Sabine 18.1.2.1.2.1

              come to think of it.
              i take back the Scheinehund as comparing you to a Pig Dog would be an insult to Pig Dogs. They are usually well training, well behaved and serve a puropose.
              You sir, however serve no other purpose then to stir shit. So Scheisskerl it is.

          • Stuart Munro 18.1.2.1.3

            “If you prick a rich foreigner”

            Let’s find out. Homeless kiwis are bleeding already.

          • Brian Smith 18.1.2.1.4

            Why are foreigners forbidden to buy property in China by the Chinese government? That’s racist, xenophobic, call it what you will. The terms of the FTA with China should cover mutuality in this regard, surely.

            • One Anonymous Bloke 18.1.2.1.4.1

              So long as whatever defences a pro-New Zealand government puts in place apply to all other countries (CERA might mediate this wrt Aussies) there’s no problem.

              Whether the PLA (for example) might apply other kinds of pressure is another thing entirely.

        • Neil 18.1.2.2

          Fisiani is secretly of Chinese descent, that’s why he’s protesting so much

          • Draco T Bastard 18.1.2.2.1

            No, I suspect that fisiani is just trying to protect his ‘investment’. He knows damn well that if the government did the rational thing and banned offshore ownership then his ‘worth’ would drop down by 80%.

      • Chooky 18.1.3

        +100 DTB..”They have their own”… and they don’t allow foreigners to take what is theirs in their own country….why should we allow it here?

        We are being taken for fools by jonkey nact to allow this to happen

    • adam 18.2

      Love the irony bro – you defending the communists.

      Thanks fisiani, needed a good laugh.

  19. D'Esterre 19

    “It’s not up to us to make a moral decision on foreign ownership”

    I was just following orders.

    Am I my brother’s keeper?

    Other people’s misery isn’t anything to do with me.

    Not just a broken moral compass: these people haven’t got one.

  20. whispering kate 20

    Have just noticed a full page coloured advertisement in an Auckland Property Guide that Steve Hansen the AB coach aligns with Ray White New Zealand as a Global Brand Ambassador. He is shown smiling with a Ray White big wig signing some document. He doesn’t seem to object to floods of immigrants coming here to live for a few months each year. Wonder how much he is being paid and wonder how much Ray White give to the AB’s war chest.

    Rugby has become a corporate juggernaut and what with the Olympics allowing professionals to compete, the joy has gone out of watching sports events. I thought Steven Hansen looked a reasonable sort of guy, I now can see he isn’t.

    • Leftie 20.1

      Remember John key pretending to be an All Black on the cover of a magazine that was on the shelves and near the checkouts in every supermarket, stores and book sellers through out the country during the 2014 election campaign?

    • Chris 20.2

      Like how Ritchie McCaw, Dan Carter, Kieran Read and others have shares companies that own rest homes – waiting to cash in as demand goes through the roof on the backs of minimum wage workers. If they had a moral bone in their million dollar bodies they’d be advocates for lifting the standard of care older people and the disabled get by raising wages and properly valuing the lives of the most vulnerable.

  21. Mrs Brillo 21

    I’m curious. What does a global brand ambassador actually do?
    Any idea?

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