Comments on: How overvalued is Australian residential property?

By: Frank

Frank — Thu, 01 Jan 1970 10:00:00 +0000

Renter’s attack on building workers and nine day fortnights can’t go unchallenged. they still work the same hours per fortnight even with a day off and to single builders out is way off the mark when we have seen established properties with no improvements done to them skyrocketting from one sale to the next. it is the easy access to money, cheap loans, people’s greed, the media and a government that wanted to make everybody feel like they were doing well which has caused this blowout. it is a pity that innocent people are getting hurt but i have no sympathy for the speculators who have had a good run but who now face ruin.

By: frank

frank — Thu, 01 Jan 1970 10:00:00 +0000

By: OldSkeptic

OldSkeptic — Thu, 01 Jan 1970 10:00:00 +0000

Has anyone ever heard of the supply/demand? What was that idiotic piece recently from the RBA (Ridiculous Bunch of A**ehol*s) about property prices will never be affordable again.

Well, duh, if buyers cannot afford it then they will not buy, duh. Therefore prices will fall, duh. Was the RBA (and every other paid ,mouthpiece ‘economic’ commentator) imagining an Australia with millions of empty houses, where the majority of people sleep in the street? Are we imagining an Oz with 3 people owning 5 million homes, all empty?

Average drop over the next 3 year, 50%, with regional and local differences. Houses close to the city and/or train/tram lines ($3+ dollar a litre boys and keep adding) will drop less, but they will drop.

I have to laugh at supposedly ’ Intelligent’ people coming out with this rubbish. Then there is commercial property .. total blood bath, watch bank profits collapse. Which bank will need a Govt bailout first?

By: frank

frank — Thu, 01 Jan 1970 10:00:00 +0000

By: Renter

Renter — Thu, 01 Jan 1970 10:00:00 +0000

Has Adam Schwab tried to rent a property recently? Too many warm bodies chasing too few houses. That’s the real story of Australian property as either as buyer or renter. Sydney is both Ocean and mountain land locked. Melbourne has the absurd 2030 outer Green belt constraint and the Save our Suburbs crowd frothing at the mouth about inner urban development. Add to this mix our population growth and smaller households and herein lies part of the answer to Australia’s property market. The UK and US are of no relevance to our special circumstances on the door step of China. Prperty prices are also high because of government imposts, regulations, taxes and cushy work practices in the building industry. As for me, I’d love to don a hard hat and work nine days out of every ten and still be paid the same money. Who pays for all the above? You go it - home buyers, investors and tenants. Get rid of the above imposts and only then might prices begin to stabalise.

By: Michael

Michael — Thu, 01 Jan 1970 10:00:00 +0000

I agree the Aussie property market is the most overvalued property market in the world. What makes us Aussies think that we are imune to the slump in prices in the US, UK, NZ. There are a number of factors that will make prices fall.
(1). Affordability - Prices in Brisbane have increased by at least 250%, not sure about the other cities. Wages on the hand have increased by a lot less. There will come a time, where people will say enough is enough and won’t be prepared to pay these silly prices.
(2). The drought (food prices) and oil prices - this is impacting on peoples budgets. Inflation will continue to remain outside limits if these essential items continue to increase $$, which will continue to put pressure on interest rates, hence affordability.
(3). Fixed rates taken out at 6% a few yrs ago will lapse soon, resulting in rates jumping to 9% - sounds US Subprime.
(4). The media can make or destroy the market - the media is changing its tune re. property and people follow

By: Jonno

Jonno — Thu, 01 Jan 1970 10:00:00 +0000

Re. “How overvalued is Australian residential property?”. Let’s not forget that the house of cards is also built on the availability of money from the lenders. As they are now tightening their belts post sub-prime fallout there will be less of it around to chase the vendor’s asking prices. In addition, who’s going to want to emigrate here if they cannot afford to live here. There’s a tipping point somewhere and the falling number of sales and increased time properties are on the market are signs its starting to swing.

By: frank

frank — Thu, 01 Jan 1970 10:00:00 +0000

By: anne handley

anne handley — Thu, 01 Jan 1970 10:00:00 +0000

In the equation of demand and supply, if its all about population growth and demand for housing outstripping supply, then take into account all thhose elderly people who go into aged care accommodation every single day. You might be surprised at the growth area there.