PROPERTY

[early birds]

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!!
it is ramping or reality??

[rlane]

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]

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]

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]

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

[nipper]

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.

[nipper]

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.

[nipper]

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.

[nipper]

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!

[henrietta]

In Reply To: nipper's post @ Jun 18 2020, 09:26 AM

privatise profits and socialise losses

Ask the US banks how to do it if you're not sure.

Cheers
J