The future of Australian property prices

[skcots]

Tysonboss1: I dont know much about the North shore but if the million dollar properties are being bulldozed in favour for affordable apartments. This would certainly change the desirability of the area in the long term. Maybe its worth investigating where the next generation of rich execs will be moving. If you have the means that is.

 

[Tysonboss1]

Tysonboss1: I dont know much about the North shore but if the million dollar properties are being bulldozed in favour for affordable apartments. This would certainly change the desirability of the area in the long term. Maybe its worth investigating where the next generation of rich execs will be moving. If you have the means that is.

they are not just running a bulldoze over the entire north shore, The main developments are running along the train line and pacific highway, so there will be alot of areas that are unaffected.

But I don't own property in sydney, and I don't think I ever will. I prefer Brisbane thats where I invest.

 

[trainspotter]

The RP Data-Rismark Home Value Index released this week showed that capital city home values increased by just 0.2% during April 2010 after recording growth of 1.3% in March. For houses outside of the capital cities, values fell by -0.2% over the month. Despite the softening growth rates, capital city property values have increased by 11.9% over the last 12 months whilst those areas outside of capital cities have recorded rates of growth less than half this, at 5.6% over the year.

No doubt these latest results showing a slowdown in the rate of property value growth along with weakening housing finance data, a significant fall in consumer sentiment, easing auction clearance rates and a run of interest rate hikes, has weighed heavily on the decision by the Reserve Bank to keep interest rates on hold this month. The results certainly seem to show that the rate hikes to-date have had the desired effect of slowing the rate of growth in residential property however, evidence suggests that these hikes are now stifling new construction.

Dwelling approvals data released this week showed a significant fall, with approvals for private homes falling by -13.5% during April 2010. This was the biggest monthly fall since July 2000. Total dwelling approvals fell by -14.8%, their greatest monthly fall since November 2002. Meanwhile, private unit approvals were down -5.4% for the month.

Yep ....... it was smoke on the horizon afterall. Still believe that we are not heading into negative territory on a cataclysmic scale. Can see that foreclosures will definitely surge if rates are on the move upward. Listings will increase as the RE's do their job. General slowdown across the board is good for the industry.

I enjoy robots positivity in this thread. Try a bit of leniency when it comes to retaliatory posts on the man. He is living the dream and believes strongly in property investment on a scale that suits him. His style may not suit the "sophisticated investor" status of some of us in here but you have to give him credit for his unwavering viewpoint.

 

[medicowallet]

The results certainly seem to show that the rate hikes to-date have had the desired effect of slowing the rate of growth in residential property however, evidence suggests that these hikes are now stifling new construction.

Dwelling approvals data released this week showed a significant fall, with approvals for private homes falling by -13.5% during April 2010. This was the biggest monthly fall since July 2000. Total dwelling approvals fell by -14.8%, their greatest monthly fall since November 2002. Meanwhile, private unit approvals were down -5.4% for the month.

They always panic about this.

When I last went to build (about 2 years back), there was a 6 month wait before they could start to build.

I would not panic about approvals unless they keep low for as long as the average lag time is. However if they do, then builders and developers will no doubt offer discounts to encourage people to keep investing, this will keep people employed and produce downwards pressure on prices. Everybody is a winner, except the developer/builder.

 

[medicowallet]

Wow

I was shocked to see 30/5/2010

Melb
881 = 68.8% clearance
Syd
642 = 62.2% clearance

Could be another interesting weekend.

 

[robots]

hello,

oh yeah, another great day in melbourne

yes probably mid 60's, fantastic result

dont know why there is all this new found interest in the clearance rates,

like i mean, only losers post up the results dont they? any bet on what time Ubiquitous will be logging in?

thankyou
professor robots

 

[explod]

Wow

I was shocked to see 30/5/2010

Melb
881 = 68.8% clearance
Syd
642 = 62.2% clearance

Could be another interesting weekend.

Just posted up on Channel 9, clearance rate 72% and expected to stay around 75% for some months, so I'm with the Confessor, noooo worrries, we will get through this.

 

[robots]

hello,

oh thanks explod, legend man

its exciting, everyone is logging in to get the results

any chance of one of those jokes Explod? cheer all the melbuornians up

thankyou
professor robots

 

[robots]

hello,

and here it is brothers:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=1226&nav2=162

70% on this fine day, awesome, oh well

the RBA will be happy, all's normal and just plodding along fine, well done Enzo

gee the country doing well

thankyou
professor robots

 

[medicowallet]

hello,

and here it is brothers:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=1226&nav2=162

70% on this fine day, awesome, oh well

Yes. We'll have to wait a week for the real figures though. I'll post them then.

 

[UBIQUITOUS]

The clearance rate from today’s 808 reported auctions was 70 per
cent, a good result given Melbourne has never seen as many auctions
held on a winter weekend.

Why? To give buyers an opportunity no doubt

1020 auctions on the weekend after next. Looking pretty scary indeed. I'm betting that when we get to spring we will be looking at around 1500-2000 per weekend.

 

[Beej]

Why? To give buyers an opportunity no doubt

1020 auctions on the weekend after next. Looking pretty scary indeed. I'm betting that when we get to spring we will be looking at around 1500-2000 per weekend.

Unlikely, and I'm not sure what you see as scary in those results? Unless you mean scary to housing market bears?? To provide some context, including private treaty sales there would be in the order of 1500-2000 properties changing hands in Melbourne each and every week of the year on average anyway. The "hot" market there is probably encouraging a larger proportion of sellers to go down the auction route at the moment. If/when the market softens there a bit (which is of course inevitable), then auction numbers will drop off, back to more "normal" levels.

Cheers,

Beej

 

[UBIQUITOUS]

Unlikely, and I'm not sure what you see as scary in those results? Unless you mean scary to housing market bears?? To provide some context, including private treaty sales there would be in the order of 1500-2000 properties changing hands in Melbourne each and every week of the year on average anyway. The "hot" market there is probably encouraging a larger proportion of sellers to go down the auction route at the moment. If/when the market softens there a bit (which is of course inevitable), then auction numbers will drop off, back to more "normal" levels.

Cheers,

Beej

This is a major assumption and I would like to see evidence of this. Are you saying that there has been a decrease in the number of properties up of sale by private treaty?

 

[satanoperca]

The "hot" market there is probably encouraging a larger proportion of sellers to go down the auction route at the moment.

Or a whole lot os sellers wanting to liquidate quickly and auctions would be seen as the fastest route.

then auction numbers will drop off, back to more "normal" levels.

What are normal levels.

I went to three auctions yesterday, mad rush between them, but they were all passed in on vendor bids. All seemed to be priced at the peak of the market which was many months ago when IR's were lower, the threat of Europe imploding was less,the share market was not falling and backflip KRUDD was trying to strangle the largest export sector in Oz. The crowds were smaller but it was a crap day in Melbourne.

I will continue watching, investigating and waiting for an opportunity to purchase some RE, but that time is not know for me, others may see it differently.

Cheers

 

[robots]

hello,

yes although auction process (if sells) is probably the simplest for both sellers and buyers you still need to get property ready, advertise and run open for inspections

so any of the pro's here sold at the top?

thankyou
professor robots

 

[medicowallet]

so any of the pro's here sold at the top?

thankyou
professor robots

Sorry never sell any property. I ride it out.

 

[robots]

hello,

what are you holding onto Medico, house, investment properties, 1, 2, 10, regional, capital city, commercial?

http://www.theage.com.au/business/why-shares-are-down-down-under-20100605-xlyg.html

thanks
professor robots

 

[medicowallet]

hello,

what are you holding onto Medico, house, investment properties, 1, 2, 10, regional, capital city, commercial?

http://www.theage.com.au/business/why-shares-are-down-down-under-20100605-xlyg.html

thanks
professor robots

A mix of personal, major regional and capital. I don't have any interests in commercial anymore.

I don't see the point in selling as I can comfortably take the losses which are coming, as I don't have any loans. I also have enough money in shares in my SMSF.

Basically I never sell anything. Never sell shares, never sell property. I am a long term player, and choose well (ie I did not lose much in the GFC as I had mainly banks, miners and retailers, unfortunately had MFS! (the property company which went bust))

How about you?

 

[robots]

hello,

ppor and 2 others, having just purchased in Ballarat

just keeping the options open for later in life, country and city living, have been selling shares of recent to have cash in bank

not sure what loans have to do with it, if pandemonium hits you think IR will same as now?

thats why i couldnt understand why S.Keen and many others wanted to get out of "debt", it gets cheaper to have a roof over the head

have all the foreign buyers disappeared or people onto the next myth

thankyou
professor robots

 

[robots]

hello,

off out for lunch brothers so have a great day, chill out, relax or go hard if your on

thankyou
professor robots