Australian housing market.

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kingdragonfly

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#245491 6-Feb-2019 19:31

Worries over "negative equity", owing more than the properties such as apartments worth, and unsafe tower builds.

Are we facing similar market corrections?

Expert warns Australia could turn into slums in 20 years
60 Minutes Australia

"Housing and banking expert Martin North North has criticised developers and the housing industry for 'throwing up' high-rise buildings at such alarmingly fast rates.

He warned viewers that significant defects and safety concerns are imminent."

snnet

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#2174142 6-Feb-2019 20:09

I don't think we have the same economy as Australia has despite the media frenzy

Isn't there an over supply of housing there, be it still at a high price? Where as here there is a shortage?

kingdragonfly

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#2188568 28-Feb-2019 07:35

https://www.oneroof.co.nz/news/36011?ref=nzhhome

Home's $211,000 wipe-out: Proof Aussie market is in crisis

"If you’re looking for proof of Australia’s tumbling house prices, look no further than 97 North Road in Ryde, NSW.

When the three-bedroom family home, located just 12km from Sydney’s CBD, sold in October 2016, it raked in a healthy A$1.51 million (NZ$1.57m).

But just 22 months later, when it sold in August 2018, it fetched a mere A$1.308 million (NZ$1.36m).

That’s a staggering A$202,000 (NZ$211,000) wiped off the property’s value in less than two years, representing a 13 per cent drop."

tdgeek

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#2188574 28-Feb-2019 07:52

Its a correction. Banks might be unhappy that they have less security, as will the home owner but as long as the mortgage gets paid, its fine. The bank just has to wait till equity catches up. As there had been a boom, this only applies to newer purchases, older purchases will just have a drop in equity, a paper change (unless you were about to grab some for a new Porsche or house improvement)

As prices ease, that adds more people into the "able to buy" position, that should slow the downturn somewhat.

I doubt it will happen here. In ChCh there seems to be an oversupply, as some subdivisions have left overs from the boom when builders built homes frantically to cash in. prices are stable, not falling. I can see a downturn if interest rates started to creep up, possibly causing a ruish of demand as new buyers jumped in and locked in the first few years perhaps.

Rising interest rates are more the concern for boom buyers. Plus everyone else but to a lesser extent. Tough on the economy if more and more money goes to banks instead of shopping

irongarment

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#2188587 28-Feb-2019 08:33

A mere $1.3 million? What a shame.

Batman

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#2188588 28-Feb-2019 08:38

Economists are like weather forecast.

"It's going to snow". It either will or it won't. Eventually it will snow.

Since I have been following the news in 2003, they have predicted a housing crash in NZ and Australia, every month, 12 months a year, for 16 years.

So at some stage it will, (or it won't). Mind you other counties did see a big housing crash in that time. While in other countries (more accurately, cities), they have been doubling every 3 years in that time. In Australia, there have recently been a bit of a correction in WA and QLD. But so far with Melbourne and Sydney, nobody knows.

wellygary

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#2188606 28-Feb-2019 09:27

Martin North has been calling a housing apocalypse in Australia since forever

"MARTIN NORTH: I don't think we're ever gonna see house prices back to where they were pre-GFC. I don't think we're going to see the lending environment the same and I'm not sure that we're ever gonna see property prices moving up as quickly, because previously people were able to get out of jail by selling their property at a profit. We're not seeing that now."

https://www.abc.net.au/7.30/mortgage-stress-weighs-on-post-gfc-home-owners/4316970

He wrote that in 2012, so his record on predictions ain't flash....

Fred99

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#2188651 28-Feb-2019 10:05

Batman:

In Australia, there have recently been a bit of a correction in WA and QLD. But so far with Melbourne and Sydney, nobody knows.

Eh? There's definitely been a "bit of a correction" in Sydney/Melbourne - that's been widely publicised.

True perhaps that nobody knows for sure what happens next.

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Fred99

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#2188666 28-Feb-2019 10:25

kingdragonfly: https://www.oneroof.co.nz/news/36011?ref=nzhhome

Home's $211,000 wipe-out: Proof Aussie market is in crisis

"If you’re looking for proof of Australia’s tumbling house prices, look no further than 97 North Road in Ryde, NSW.

When the three-bedroom family home, located just 12km from Sydney’s CBD, sold in October 2016, it raked in a healthy A$1.51 million (NZ$1.57m).

But just 22 months later, when it sold in August 2018, it fetched a mere A$1.308 million (NZ$1.36m).

That’s a staggering A$202,000 (NZ$211,000) wiped off the property’s value in less than two years, representing a 13 per cent drop."

That house is about 100m as the crow flies from a good friend of ours house - it's not really "Ryde" but Denistone East / North Ryde.

Their house is 3 brm, similar age to that. IIRC they paid $200k for it in the early '90s.

Batman

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#2189887 2-Mar-2019 16:31

this however, is a bit more that I thought, but is it just a handful of suburbs or is it widespread

... i might be able to haggle a secondhand V8 if this goes on ...

https://au.finance.yahoo.com/news/13-suburbs-home-values-nosedived-30-per-cent-2018-030145928.html