Australian (ASX) Stock Market Forum

The future of Australian property prices

Jump to new
moXJO said:
Personally I think we are on the end of a nasty housing cycle. It can't hold up forever.
Not sure if I mentioned this a page back or not. But my parents house just got valued at $1.3 million. And there is no way it's worth that much in my mind.

Something has to break because there is no way this is sustainable. This is all just stimulus run-off and fed would want to make a move soon.
Click to expand...
it’s worth what the market will pay...if they get $1.3 then it’s worth it
 
sptrawler said:
I moved to Perth when I finished my apprenticeship in 1976, electrician at a BHP blast furnace $11k/ annum, house and land package 3x1 in nearby Rockingham $27k. Didn't buy one got married 3 kids blew that idea.
Anyway today an industry day shift sparkies at Alcoa, SEC etc is earning approx $120k/ year, 3x2 house and land package in Rockingham $340K.
Click to expand...
As a multiple of annual salary looks like not much has changed there ?
 
MovingAverage said:
it’s worth what the market will pay...if they get $1.3 then it’s worth it
Click to expand...
As you say, something is worth what someone else will pay, but it is getting scary.

Smurf1976 said:
With migration drying up with COVID restrictions and the associated things like overseas students and tourists not requiring accommodation, where's this sudden need for housing coming from?

The whole thing looks extremely speculative to me and something that isn't sustainable. :2twocents
Click to expand...

I'm 100% with you on that, this has to end badly for some, no one will see it coming.
 
MovingAverage said:
As a multiple of annual salary looks like not much has changed there ?
Click to expand...
Perth really peaked in 2010 GFC, crashed then double topped just before the mining boom popped and we are only really getting back to the 2010 prices now. I down sized in 2010, my old place is still only worth what it was then, it might have jumped a small amount in the last 6 months, but really I think it would only sell quicker at the moment not for more money.
The thing with Perth, there is a lot of land releases, so established is always competing with new house and land packages, or new infill housing.
I'm surprised by the way Sydney has gone, when i was working in about 2009 I received an email from defense housing , there was a really nice town house in a group of 4 for sale $800k. I thought that is a lot of money, it was located midway between Sydney CBD and Bondi, I think it was called Double Bay. Obviously that was another missed opportunity. :(
 
sptrawler said:
Perth really peaked in 2010 GFC, crashed then double topped just before the mining boom popped and we are only really getting back to the 2010 prices now. I down sized in 2010, my old place is still only worth what it was then, it might have jumped a small amount in the last 6 months, but really I think it would only sell quicker at the moment not for more money.
The thing with Perth, there is a lot of land releases, so established is always competing with new house and land packages, or new infill housing.
I'm surprised by the way Sydney has gone, when i was working in about 2009 I received an email from defense housing , there was a really nice town house in a group of 4 for sale $800k. I thought that is a lot of money, it was located midway between Sydney CBD and Bondi, I think it was called Double Bay. Obviously that was another missed opportunity. :(
Click to expand...
Reckon you’d need an $800k deposit alone to get into double bay now ?
 
Mrmagoo said:
Europe is categorically a better place to live than Australia unless you are already wealthy here in Australia. Notice I said "live" to not accumulate a fortune in property speculation.
Click to expand...
feel free to move/move back to these failing states..leaving Europe [to Australia] was the best move I ever made...no regret for leaving, probably should have gone to the USA in hindsight..but too late now
 
sptrawler said:
I moved to Perth when I finished my apprenticeship in 1976, electrician at a BHP blast furnace $11k/ annum, house and land package 3x1 in nearby Rockingham $27k. Didn't buy one got married 3 kids blew that idea.
Anyway today an industry day shift sparkies at Alcoa, SEC etc is earning approx $120k/ year, 3x2 house and land package in Rockingham $340K.
Click to expand...
so in 76, house was around 3x raw income, now...around same 3xraw income..same same unless we consider the real tax rate has increased too much ?
 
qldfrog said:
so in 76, house was around 3x raw income, now...around same 3xraw income..same same unless we consider the real tax rate has increased too much ?
Click to expand...
Yes once you are away from the CBD Perth's house prices really haven't changed much as a multiple of incomes.
The incomes in W.A have increased considerably with the mining boom, also that has been reflected in wages in the metropolitan area, there is currently a post covid boom going on which is seeing a lot of stock hit the market.
But with the State and Federal home buyer and renovator stimulus, there is also a boom in new builds, which when everything settles down will no doubt leave a lot of overhang in the market and stagnate prices again.
Here is a house not far from my place, in the last boom it would have been about the same price, hasn't sold so it is overpriced.
If you are a young guy and work in the city and want an apartment, within walking distance.

Or if you want something a bit more up market.
 
Last edited:
Well I think I’ve followed this forum enough now. I’ve got better things to do. I’ve added my 2 cents worth, which in short is, as a boomer I believe it’s more difficult to get on the housing ladder today than when I was a 20 year old.
Open discussion of opinions is good but this, for me, just seems to be an argument.
I’m off for a beer, but as a leaving comment, I pay tax, but I can’t vote, so what can I do ? I’m an immigrant.
I am sorry to see this good, interesting forum discussion on a really interesting and important topic being dragged in to one of insults and non bi partisan discussion.
Oh well moving on to see what the adults are discussing.
Gunnerguy
(sad and depressed that this interesting discussion has just gone downhill)
 
Gunnerguy said:
Well I think I’ve followed this forum enough now. I’ve got better things to do. I’ve added my 2 cents worth, which in short is, as a boomer I believe it’s more difficult to get on the housing ladder today than when I was a 20 year old.
Open discussion of opinions is good but this, for me, just seems to be an argument.
I’m off for a beer, but as a leaving comment, I pay tax, but I can’t vote, so what can I do ? I’m an immigrant.
I am sorry to see this good, interesting forum discussion on a really interesting and important topic being dragged in to one of insults and non bi partisan discussion.
Oh well moving on to see what the adults are discussing.
Gunnerguy
(sad and depressed that this interesting discussion has just gone downhill)
Click to expand...
Well the boomers can't respond with data because the data disproves their assertions.

In reality, they know we're right/they're wrong, they just won't admit it.


When you respond to data with mudslinging, you've lost.
 

Similar threads

3
Future of $100,000 overland tourer Aussie lifestyle and the EV era
2
Replies
21
Views
2K
qldfrog
qldfrog
A
The future of Astraya
2 3
Replies
45
Views
8K
SirRumpole
SirRumpole
Dividend
Ultimate Acronym List (UAL)
Replies
0
Views
5K
Dividend
Dividend
A
Factors affecting property prices
Replies
3
Views
11K
Space Invader101
Space Invader101
MrBurns
Australia's own Ponzi scheme: the property market
Replies
4
Views
5K
Glen48
Glen48
Top