Wow. Help for couples earning up to AUD 200k (€125k) and the maximum loan won’t even buy the median house. Talk about stoking the fire. Australia will surely regret letting everyone put their pensions in property. It’s effectively committed to blowing an eternal asset bubble.
The article goes to to lay out the retail sector issues.
Looks like the Aussies are stepping on the gas.
Interesting. We were told last summer by family that this was the time to buy. But all there was was a lull, a 10% decline wasn’t very atttactive. We are overseas and the prices have been live dynamite for years. Decision time coming up though.
A rate cut during the week will surely see some +ve moves in property over the coming weeks.
Perth rental market tightening up nicely. Great buying opportunities there atm.
Analysis from the RBA found around two-thirds of home-owner debt is held by the top 40% of income earners. Yet, if the downturn is prolonged and there is a broadening of job losses across other sectors, this would have larger impacts on the housing market.
“Australia’s high household debt was never going to be a cause of a recession, but it would quite possibly magnify the impact of anything else that caused a recession,” said Saul Eslake, an independent economist who has analyzed the Australian economy for 40 years.
“The risk isn’t so much to the financial system that there will be a wave of defaults,” he said. “But rather the risk was to the economy arising from what highly indebted households would do to avoid defaulting, which is substantially cut back their spending.”
10+ year old thread…
Sydney makes Dublin seem rational but I think we are heading in the same direction. I predict lots of auctions in Dublin as we relax COVID-19 restrictions. The current handwringing about investment funds will only encourage BTL investors- after all, if the big boys are flooding in, there must be money to be made.
Just a random example to illustrate - €1.6M for a 125 sq. m. townhouse. I would guess this would get max. €1.1 M. In Dublin even in Ballsbridge. So >40% premium for Sydney.
Media bought and sold, like everywhere else it seems
2021, still going…
Bear in mind that previously both government and opposition did this together earlier in the year:
Australia mulls post-study work visas for offshore graduates
Experts welcome discussion but warn of unintended consequences from potential escalation of global recruitment race
But there is still a long way to go. More than 150,000 international student visa holders are stuck overseas.
October 2021, the number of international student visa holders in Australia was down to 266,000. In October 2019, before the pandemic, 578,000 international student visa holders were living in Australia.
Meanwhile the backdrop to intended massive inward migration is:
Great explanation as to what has happened in Australia over the past couple of decades how and why. Lots of overlaps with other western democracies. Worth a watch even if you have no interest in Australia. Ireland and others could do with this type of open chatter. Bear in mind it is not quite mainstream here either.
Both opposition and government parties captured in areas that matter such as migration and housing policies.
Australia has avoided recession a few times mainly through population growth via migration and limiting wage growth. Gpd grows but the gdp per capita in real terms is the casualty. I suspect other democracies are following this path now.
The weekly value gains across the capitals ranged from around $1,200 to over $6,300:
- Sydney: $6,300
- ACT: $4,200
- Brisbane: $3,500
- Hobart: $3,000
- Melbourne: $2,900
- Adelaide: $2,500
- Perth: $1,250
- Darwin: $1,200
Advertised inventory finished the year 24.7% below the five-year average.
While stock levels have generally been low, the total number of home sales in 2021 was approximately 40% above the decade average. CoreLogic estimates there were approximately 653,000 house and unit settlements over the calendar year, the highest number of annual sales on record.
Nationally, dwelling rents increased by 9.4% over the 2021 calendar year; the largest annual increase since the 12 months ending January 2008. Unit rents were up 7.5% over the year compared to the 10.1% lift recorded in house rents.
fastest rate of annual growth since the late 1980s at a time when wages and household incomes hardly moved