The future of Australian property prices

[Value Collector]

Value Collector I think you are missing the point that in a lot of smaller countries (I mean smaller in terms of land mass) like Germany or Italy, etc that a lot of these towns are much closer to the major cities.

There is no reason Australia could not develop in that way, you could easily fit more large hubs between Sydney and Brisbane for example that could become cities in themselves.

 

[Smurf1976]

I am not suggesting people have to live in rural areas, there are heaps of nice towns up and down the coast with cheaper property prices.

Trouble is, in the minds of many anywhere that isn't within 20km of the Sydney or Melbourne CBD is "rural" and they want nothing to do with that.

That there's 2.3 million people living in Brisbane, 2 million in Perth and 1.3 million in Adelaide plus about 9 million Australians who aren't living in any of the 5 largest cities is a concept that many just can't grasp it seems.

 

[Dona Ferentes]

There is no reason Australia could not develop in that way, you could easily fit more large hubs between Sydney and Brisbane for example that could become cities in themselves.

https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/3222.0main+features72012 (base) to 2101

Adding a Canberra every year, if the (pre Covid) growth continued.
Does anyone remember the Whitlam era plans, .... Bathurst-Orange, Albury-Wodonga and Monarto?

 

[qldfrog]

Toowombah Warwick here in qld
Driving 1500km north from brisbane and seeing deserted areas with so much more resources in term of water than most of the US all within 1h from the seaside...so not exactly purgatory lifestyle
A road a train line, an hospital and a regional centre and we could move all welfare and pensioner there for s happier life than in shitty metropolitan suburbs.this would be enough to trigger economic poles

 

[Smurf1976]

There are many small towns in Germany where you can live there and drive 45 minutes to Berlin or Munich or Frankfurt, or Hamburg, etc. So people can live in a smaller city or small town, etc and commute to work in the major cities.

For that matter go to the UK and Leeds, Manchester and Sheffield are all no more than about 70km from each other in a triangle. They're all cities as such, each with a comparable population about 500K each.

 

[Smurf1976]

Shows how fragile our economic model is, the only real jobs are in W.A, North Queensland and S.A,

There's still a few "real" things in Tas by the way.

The Incat shipyard is an obvious one as is the presence of the world's third largest electrolytic zinc smelter.

Basic point agreed though, just pointing out that technicality. Measured in a straight line I used to live just under 3km from the zinc works.

 

[SirRumpole]

https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/3222.0main+features72012 (base) to 2101

Adding a Canberra every year, if the (pre Covid) growth continued.
Does anyone remember the Whitlam era plans, .... Bathurst-Orange, Albury-Wodonga and Monarto?

Bathurst-Orange was canned because of lack of viable water supply I believe.

A report of the failure of the BODC for those interested.

https://rune.une.edu.au/web/bitstream/1959.11/12112/9/open/SOURCE04.pdf

 

[Dona Ferentes]

Bathurst-Orange was canned because of lack of viable water supply I believe.

Most places west of the Great Divide (the 'cancel crowd' should be on to renaming that one?!!) would find it hard to support anything other than medium sized towns/ cities. Canberra as an entity only got up because of the investigation of water, by surveyor Charles Scrivener in 1908. The Western boundary of the ACT defines the catchment.

 

[Value Collector]

Trouble is, in the minds of many anywhere that isn't within 20km of the Sydney or Melbourne CBD is "rural" and they want nothing to do with that.

and that’s ok if that’s what they want, but then they shouldn’t complain about prices.

 

[sptrawler]

Anyone for a tree change, well not many trees at Mt Magnet, but a few around Morowa.
A lot of cheap housing in rural W.A

https://www.abc.net.au/news/2020-06-25/morawa-fights-rural-decline/12059982

Morowa is about 350klm north of Perth, broad acre farming and bigger machinery has decimated work, in these wheatbelt towns.
Mt Magnet is 540klm north of Perth, mining town was once thriving, now with fifo it is dying.

 

[sptrawler]

Well it looks as though the Sydney/Melbourne property, market may get a second wind, as people from Hong Kong relocate their wealth.

https://www.smh.com.au/national/aus...6-p559fp.html?js-chunk-not-found-refresh=true

 

[Tink]

In Victoria

 

[explod]

Clearance rates tell us little.

Many sellers are reducing prices to meet mortgage stress and tenants not able to pay so clearance goes up.

 

[silverstar]

does it mean its not a good time to buy an investment property?

 

[sptrawler]

does it mean its not a good time to buy an investment property?

I guess that depends on your personal financial position.

 

[explod]

does it mean its not a good time to buy an investment property?

Not for anyone to give advice but if it was me seeking a property I'd be waiting for awhile.

 

[jbocker]

does it mean its not a good time to buy an investment property?

It is a good time somewhere, it is a bad time elsewhere.
Location, property price and condition, amenity of the area, ability to obtain and service any required loan, rental or renovator: what will be the rate of return, preparedness to take on the risk, and ability to keep up with interest rates. There is a bucket full of questions to consider and answer.
It is always simultaneously a good time AND a bad time in property investment.

It is a ALWAYS a great time to put something into Investment (not necessarily in property).
Keep looking, and then doing it.

 

[sptrawler]

Well if Mark McGowan gets his was, the price of houses in W.A country towns, may at last show a glimmer of hope.
This is something that should have been done years ago IMO.

https://www.abc.net.au/news/2020-07...-longer-sustainable/12476202?section=business
Councils in Western Australia have thrown their support behind a possible move away from resource companies using interstate fly in, fly out (FIFO) workers.
Today Premier Mark McGowan called on resources companies to employ state-based workers.

"I don't think flying in workers from over east is sustainable any longer," he said.

 

[jbocker]

I believe there is an argument to wind back to have more mining towns. FIFO is not an easy lifestyle; neither are some mining towns. I believe there is a need to develop regional communities and diversify communal existence outside of cities.

 

[sptrawler]

I believe there is an argument to wind back to have more mining towns. FIFO is not an easy lifestyle; neither are some mining towns. I believe there is a need to develop regional communities and diversify communal existence outside of cities.

It really has to be done, the only way we can efficiently develop Australia's remote areas, is to provide work there.
To do that, we need to develop industries that value add to the minerals we dig up, it is too inefficient to dig up the minerals transport them down South to process them and then ship them North to the markets.
If we are going to develop a huge hydrogen industry in the North, we need to accept that we need to have people live and work there, flying your workforce of tens of thousands of people 4,000klm every 8 days is not sustainable.
We can't keep going the way we have been doing it the last 20 years, it is crazy and it will end up making Australia a third world country, everyone gets on the band wagon of what are we leaving future generations well digging and shipping leaves nothing.