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PROPERTY
early birds
post Posted: Mar 3 2021, 09:08 AM
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New Year Sees Building Approvals Cool Off

The heat went out of home building approvals in January as the Federal Government’s Home Builder program was wound back a notch or two.

Data from the Australian Bureau of Statistics revealed that thanks to a drop in both new private home approvals and those for apartments, the number of new dwelling approvals slumped 19.4% in January (seasonally adjusted).

“Private sector houses fell by 12.2% in January, coming off a record high in December 2020,” the ABS reported yesterday.

The number of total new dwelling approvals was still 19% higher than the start of 2020, with new dwellings up 38% (compared to the 55% surge in 2020), but approvals for apartments etc was down 22.7% (up from a 19% fall in 2020).

The value of new homes approved dropped nearly 18% to $5 billion, according to the ABS.

The Home Builder program offered a $25,000 government subsidy to encourage Australians to re-build or renovate their home. This was reduced to $15,000 on January 1. By the end of January 2021 about 82,000 applications had been approved. Home builder has been extended to the end of this month.

ABS executive, Daniel Rossi said “The surge in Homebuilder applications at the end of 2020, as well as the extension of the program to March, will continue to provide support for private house approvals in the coming months.”

January also saw a large fall in the number of apartments approved for construction fell.

“Approvals for private sector dwellings excluding houses remained weak in January, falling 39.5 per cent, to the lowest level recorded since January 2012,” the ABS said.

Total dwelling approvals fell in all states in January; Queensland led the way with a 33.3% slump, Tasmania (24.8%), NSW (23.2%), Victoria (13.0%), WA 4.1% and South Australia half a per cent.

Approvals for private sector houses also fell across all states in January with NSW and Queensland leading the way with a 19% slide each, Victoria an 8.4% drop, South Australia (3.7%) and Western Australia (0.9%).

The value of total building approved fell 16.8%, in seasonally adjusted terms to $9.064 billion. That was the lowest monthly total since last September.

The value of total residential building dropped 17.1% to $5.8 billion, comprising a 17.8% fall in new residential building to $5 billion, and a 12.7% slide in the value of alterations and additions to $841 million from the record $962 million in December.

A similar report for February of March will be a sign that the heat has gone out of home building and that later this year we could see new dwelling investment start detracting from economic growth.

But judging from the new housing finance approvals in January, there is still a lot of pent-up demand for new and existing homes.

Apartments, though, are the big concern.

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from our own sharecafe .

 
early birds
post Posted: Feb 22 2021, 08:31 AM
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https://www.sharecafe.com.au/2021/02/19/sev...roperty-market/

So where to now for residential property prices?
Australian home prices are likely to continue rising over the next two years thanks to record low mortgage rates and the recovery in the economy, with the latter offsetting the phasing down of income support measures and bank payment holidays. Housing finance is running around record levels and auction clearance rates are at levels consistent with strong price gains.

As a result, average capital city home prices are expected to rise by 5-10% this year and next. While first home buyer incentives are likely to be reduced, investor interest is expected to pick up and fill the gap.

However, the outlook is divergent. The hit to immigration is likely to constrain inner city Sydney and Melbourne as well as unit demand but outer suburban areas, houses, the smaller cities and regional property are all likely to see strong price gains helped along by the “escape from the city” phenomenon and less exposure to immigration. Expect average price gains of around 10% in Adelaide, Brisbane, Perth, Hobart, Canberra and Darwin in addition to regional areas.

The broader economy is unlikely to justify rate hikes until around 2023, but if the property market continues to hot up as expected, causing financial stability concerns for the RBA, a tightening in lending standards is likely next year which should start to slow things down and eventually the bottoming of the long-term interest rate cycle and the shift to oversupply may take pressure off prices, but that’s a while off yet.

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I thought the price gonna dive after Govnt. stopped all the helicopter money!! unsure.gif
it is ramping or reality?? unsure.gif

 
rlane
post Posted: Nov 28 2020, 01:05 PM
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QUOTE
Noosa takes bookings for '$100,000-a-week' property as border set to open

https://www.abc.net.au/news/2020-11-28/noos...reopen/12928442

 
rlane
post Posted: Jul 21 2020, 04:26 PM
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In Reply To: rlane's post @ Jul 20 2020, 07:34 PM

Looks like car sales are doing fine as well
Talking to a chap today who works at car yard in Maroochydore. They had 700 sales last month
People tapping into their super, spending the Gov. handout. Sold a Porsche sight unseen to a Vic buyer.
He said that the cities are going gangbusters, people thinking twice about using Public Tpt.

 
early birds
post Posted: Jul 20 2020, 08:13 PM
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https://www.afr.com/property/residential/re...20200720-p55dl2

During the past three months, rents in Sydney's inner suburb Haymarket fell 7.2 per cent, the largest decline across Australia. This translated to a loss of around $54 each week or $2800 over the year for landlords.

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if goes down with same rate for another three months , then there is a alarm to be heard . other wise everything will be fine as usual i guess!!



 
rlane
post Posted: Jul 20 2020, 07:34 PM
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In Reply To: nipper's post @ Jul 19 2020, 02:00 PM

Hi Nipper
Bit different on the Sunshine Coast
Have had a chat to a couple of people and they seem to back up what he is saying.

https://www.propertyobserver.com.au/terry-r...erry-ryder.html

And this

https://www.propertyobserver.com.au/terry-r...erry-ryder.html

Thanks
Roger


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nipper
post Posted: Jul 19 2020, 02:00 PM
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According to City Residential Real Estate, there are nearly 27,000 apartments for rent in Melbourne’s Docklands (8,400), Southbank (8,300) and inner Melbourne (10,500), an increase of about 500 in the past week.

Danielle Chetcuti, City Residential’s senior property manager, says the vacancy surge is caused by job losses, reduced hours of paid employment, lack of new tenants coming into the market and existing tenants stuck overseas because of travel bans. Chetcuti says she is negotiating with landlords every week to reduce the rent of tenants no longer able to afford the original costs, which has the unintended consequence of encouraging other tenants to demand their landlords match the cut.

One landlord, whose two bedroom, one bathroom Docklands property has been on the market for about eight weeks, cut the weekly asking rent from about $540 to $200 for the next three months in a bid to attract a new tenant.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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nipper
post Posted: Jul 19 2020, 01:51 PM
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Never underestimate the ability to adapt to new circumstances

While taking a hit as utilisations dropped and travel restrictions bite, being closer to the market and able to discern changes, AirBnB has repositioned itself.... No longer belong anywhere the messaging is now get away, without going far,.

And an emphasis on things that one might perceive could be colouring a decision to stay in a home or unit rather than a hotel
1. Cleanliness.... emphasising their new rigorous cleaning standards. Hosts are getting clever, too, advertising their sanitation routines and offering hand sanitiser to guests.
2. Less social interaction. Distancing is inherent, and easier to avoid crowded indoor spaces, plus self catering options.
3. Driving distance considerations; beachside destinations, mountain towns and lakeside getaways are doing well but inner city units for either tourism or short term business less so.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Jul 19 2020, 01:51 PM
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Posts: 8,696
Thanks: 2713


Never underestimate the ability to adapt to new circumstances

While taking a hit as utilisations drop and travel restrictions bite, AirBnB has repositioned itself.... No longer belong anywhere the messaging is now get away, without going far,. And an emphasis on things that one might perceive could be colouring a decision to stay in a home or unit rather than a hotel

1. Cleanliness.... emphasising their new rigorous cleaning standards. Hosts are getting clever, too, advertising their sanitation routines and offering hand sanitiser to guests.
2. Less social interaction. Distancing in inherent, and easier to avoid crowded indoor spaces, plus self catering options.
3. Driving distance considerations; beachside destinations, mountain towns and lakeside getaways are doing well but inner city units for either tourism or short term business less so.



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 9 2020, 08:41 PM
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QUOTE
There is a terrible collision between several economic realities about to occur and it is going to leave hundreds of people seriously out of pocket and the housing market with a glut of cut price apartments.

Roughly 10 per cent of off-the-plan purchasers have defaulted on their contracts in the past three months, and more are likely to do so in the next few months. It’s all down to a combination of factors.

There are the completed properties not being worth what was paid for them due to falling prices. That leads to negative equity ; owing more on the property than they are worth.

Most lending institutions are only prepared to offer loans on final valuation rather than the initial purchase price agreed before building started.

Then there are large numbers of purchasers losing their jobs or not being sure they will keep them. And the option for purchasers of walking away from their 10 per cent deposit is not as simple as it seem.
.
-sadly, it is not tempting to rush in and score a bargain!




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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