The future of Australian property prices

[Humid]

Ill tell you what would of happened if that peanut Abbott had a royal commission into the banks and not take on the unions we wouldn't be having this conversation

 

[Humid]

And to answer your question
Its happening NOW

 

[satanoperca]

First: property prices are sinking/correcting fast with a Liberal govnuts.
Why: over indebtedness. All while we have the lowest interest rates in history and the highest population growth.

What may happen if Labor gets in?
Prices will continue to correct.
If the change NG
Prices will rebalance but rents will remain unchanged. More investment in construction will flow and people will have to look at other investment opportunities other that sitting on established homes.
The current policies have caused record high property price but resulted in diminished standed of living and a poorer community

 

[sptrawler]

First: property prices are sinking/correcting fast with a Liberal govnuts.
Why: over indebtedness. All while we have the lowest interest rates in history and the highest population growth.

What may happen if Labor gets in?
Prices will continue to correct.
If the change NG
Prices will rebalance but rents will remain unchanged. More investment in construction will flow and people will have to look at other investment opportunities .

And cause the next price bubble there, you can't change people.
The other thing is, it will still be related to housing, we just don't know how it will manifest itself yet.
Because we don't know how the rich, who will be building the new builds, will wrangle it.
You should know and have seen it before, all that is going to happen is, the lower and middle group, will be locked out of the investment market.
Meanwhile the trusts, will build the houses and pay company tax rates.
I've yet to see interference, end up, with a better outcome.
W.A is back to pre boom prices, every boom has a bust, the greedy get burnt life goes on.
To change the dynamics of the market, will just change the outcomes and it wont be better for those at the bottom of the ladder, it never is. Just my opinion.

 

[sptrawler]

To add to the post below, without Government interference, the Perth property market is back to pre boom levels, the country Towns are worse. Country Towns are back to the lowest levels in 20-25 years, IFocus could confirm prices in Mandurah, are at ridiculous lows. The Goldfields, Pilbara and the lower S/W are all stuggling, to interfere with regulation will decimate the established market. IMO

https://thewest.com.au/business/hou...e-prices-plunge-to-2006-levels-ng-b881158018z

 

[Smurf1976]

The Goldfields, Pilbara and the lower S/W are all stuggling, to interfere with regulation will decimate the established market.

Goldfields and Pilbara I assume relates to mining employment etc but is there some trigger / cause for the lower south-west?

 

[Toyota Lexcen]

Isn’t Liberal delivering what a lot want? Lower prices

See rents raising by at least 15-20% where there is a low vacancy rate.

 

[sptrawler]

Goldfields and Pilbara I assume relates to mining employment etc but is there some trigger / cause for the lower south-west?

It mostly is related to Perth prices and relativity.
I would guess S.A has a similar issue, the prices in country towns , will in some way be a reflection of what a house in Adelaide can be purchased for.

 

[Humid]

Goldfields and Pilbara I assume relates to mining employment etc but is there some trigger / cause for the lower south-west?

Possibly holiday houses/hobby farms.

 

[Humid]

Also i knew a lot of peeps who did fifo from down there before it went quiet
During construction they even got an allowance and morning flight to travel

Rio were flying from Busselton?

No work around Mandurah

 

[sptrawler]

This is what happens, when the wealthy land bank and pick up cheap established homes.

http://www.thebull.com.au/articles/...inst-'rent-insanity',-seek-expropriation.html

From the article:
They singled out companies such as Deutsche Wohnen and Vonovia, which have bought thousands of buildings in a capital with one of the cheapest real estate prices in Europe.
They raze exiting structures to build luxury apartments and rented them out at higher rates.

 

[sptrawler]

Any tradies out there that want a house for $30-$40k, plenty of work in the areas, located in the mid West and Goldfields of W.A.

https://www.watoday.com.au/national...buy-a-house-with-a-catch-20190408-p51c0p.html

 

[Ann]

Australia Property Slump May Be Through Worst as Drop Moderates

Australia’s property price slide moderated in April, suggesting the worst of the housing slump may have passed.

• Housing values in the combined state and territory capitals fell 0.5 percent in April, compared to a 0.7 percent drop in March, according to CoreLogic Inc. data released Wednesday. From a year ago, prices have dropped 8.4 percent.

Key Insights

• While house values are still falling, the rate of decline has been easing since prices tumbled 1.1 percent in December. “We are seeing further evidence that the worst of the housing market conditions are now behind us,” CoreLogic’s head of research Tim Lawless said in the statement. More...
  
  
  

 

[satanoperca]

Every market needs a little rest before going hard again -up or down.

Be very surprised if this is the end of the falls, suspect that the falls will start permeating to the outer suburbs of Melb/Syd.

And hold on IR, what will happen if IR's we to rise, everyone will become vegan?

 

[moXJO]

So I noticed they loosened the lending rules the other day. Might stabilize house prices. I'm not convinced the economy is in the best of shape to see a full recovery.

 

[gartley]

It will only lead to a bounce or sucker rally my 2c worth.
IMO, this is gonna be a long bear market, and we are only in the early stages. They will try to bring the bubble back, creating bounces and suckers rallies on the way down ( nothing goes down in a straight line), but the larger trend will remain down for years and many buying into these rallies will be burnt. The larger trend in most of the worlds property markets (excluding Japan and some other countires whose bubbles bursted years ago) has been up since the early 1950's. I have noticed a "textbook" Elliottwave Structure develop in the UK property market since 1952 and the the bear market already looks to be underway there as it is in Australia which also exhibits a similar chart but with the exception that wave 5 went into a parabolic blow off move of which the rate of change of price cannot be sustained.

 

[sptrawler]

I don't know about the Eastern States, but here in the West the property market is shot and Labor wonder why their negative gearing idea wasn't well received.
I was talking to an elderly Lady on the weekend, she is trying to sell her 3x1 unit in central Mandurah (60klm South of Perth), it was valued by the Bank in 2006 when she bought it for $365,000.
It is on the market for $220,000 and she can't get an offer.
https://thewest.com.au/business/hou...use-prices-back-to-2006-levels-ng-b881218873z

 

[SirRumpole]

I don't know about the Eastern States, but here in the West the property market is shot and Labor wonder why their negative gearing idea wasn't well received.
I was talking to an elderly Lady on the weekend, she is trying to sell her 3x1 unit in central Mandurah (60klm South of Perth), it was valued by the Bank in 2006 when she bought it for $365,000.
It is on the market for $220,000 and she can't get an offer.
https://thewest.com.au/business/hou...use-prices-back-to-2006-levels-ng-b881218873z

Swings and roundabouts mate, that is the property cycle.

What goes up must come down. But I suppose you will blame the Labor Party as usual when we have had a Coalition government for 6 years.

 

[sptrawler]

Swings and roundabouts mate, that is the property cycle.

What goes up must come down. But I suppose you will blame the Labor Party as usual when we have had a Coalition government for 6 years.

No it has nothing to do with Labor, the market has been sliding here since the end of the mining boom, the problem is it hasn't stopped sliding.
I haven't seen an extended fall like this before.

 

[Humid]

My thoughts it was driven by negative gearing and greed on a previously unseen construction boom
And the fact that people enjoying the boom didn’t want to pay tax
My neck of the woods anyway and I was in the thick of it