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Its Hitting The Fan Down Under


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Property mogul from down under warns the Expat Forum the following and gives good advice to sell and rent:

"Folks ----- things are G-R-I-M down under just now !!!

If the Oz property market is anything to go by, hold on to your hats - there is property in Sydney that dropped 25% since I was there last year"

http://britishexpats.com/forum/showpost.ph...7&postcount=447

Its gotta happen here soon! :P

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It's Kate Moss. I believe she is Shakerbaby's girlfriend - which means that Shakerbaby is a scallywag smackhead called Pete Doherty! Don't think he knows much about property though, apart from breaking and entering....

I resent your comments... but at least you are nearly there with the babyshambles shakerbaby username. :P

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Property mogul from down under warns the Expat Forum the following and gives good advice to sell and rent:

"Folks ----- things are G-R-I-M down under just now !!!

If the Oz property market is anything to go by, hold on to your hats - there is property in Sydney that dropped 25% since I was there last year"

http://britishexpats.com/forum/showpost.ph...7&postcount=447

Its gotta happen here soon!  :P

Of the Australian state capital cities, it's basically as follows:

Sydney and Hobart - Prices are down. Varies from suburb to suburb but a typical house is down around 5 to 10%. Expensive properties seem to have much larger drops, particularly the $1 million+ market in Sydney.

Brisbane, Canberra and Melbourne - It's slowed right down. Depeding on the suburb and type or property there is either a small rise or small fall. Brisbane slightly up overall, Canberra and Melbourne slightly down.

Adelaide - Still rising in price but seems to be slowing. Strangely, Adelaide is now slightly cheaper on average than Hobart. Historically it has always been the reverse and the gap was significant.

Perth and Darwin - Still booming. Perth presumably is linked to the commodities boom since the whole WA economy is heavily tied to mineral exports. Darwin would be significantly influenced by interstate workers arriving to work on a large gas facility being built there (Darwin's population is fairly small so even a few hundred extra workers needing accommodation would significantly impact the market).

We are also hearing plenty about "falling discretionary spending" etc. and retailers seem to be having lots of sales.

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Adelaide - Still rising in price but seems to be slowing. Strangely, Adelaide is now slightly cheaper on average than Hobart. Historically it has always been the reverse and the gap was significant.

Last week a real estate agent in Adelaide told me that sales had slowed to a halt and there are no buyers. They had sold two properties quiet quickly at the asking price in the past three weeks but these were standouts most properties are sitting on the market for months unsold and without offers or inspections.

I think the "Adelaide is still rising" line trotted out by the press and various VIs isnt the reality of the Adelaide property market - sounds like its already turned.

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Hi all !

It is indeed a fragile market in Aus these days. Went to a property auction today, of a place I've been following.

- Originally listed at $495k 18 mths ago

- Reduced progressively, and down to 410k as at 3mths ago

- Auctioned today, sold for 345k (vendor had arranged auction, but two banker types were 'holding his hand' and basically forced him to accept the highest bid - ie, a forced sale !)

This type of sale is not unusual these days. Rather than bank take over and arrange a Mortgagee sale, they are guiding the defaulting mortagor, under threat of them (bankers) taking over if he does not comply with their wishes. This way, they avoid the stigma of a forced sale !

I used to give some credit to the soft ladning scenario as stated by vested interests, but what I've seen of late tells me further BIG drops on the way - even with no further rate increases.

Regards all,

JamesP

Edited by JP1746
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I must say I have seen a lot more adverts for Australian property in the local papers recently, and I'm currently in Malaysia!

I've been here in Penang about 14 months, but over the last 6 months or so I've noticed loads of adverts for Melbourne, Sydney etc (mostly 2 bed appartments). Even though we are about 4000 miles away :P

The adds always seem the same,"ideal investment opportunity", "guaranteed rental income" (must be some scheme), close to local university etc.

It does sound to me like the developers are desperately widening thier catchment area in an attempt to shift some of their units!

Edited by uk_jash
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Last week a real estate agent in Adelaide told me that sales had slowed to a halt and there are no buyers. They had sold two properties quiet quickly at the asking price in the past three weeks but these were standouts most properties are sitting on the market for months unsold and without offers or inspections.

I think the "Adelaide is still rising" line trotted out by the press and various VIs isnt the reality of the Adelaide property market - sounds like its already turned.

I think you could be right there csk_1975. The data that I was basing my statements on was actual sales prices up to the end of May this year. The actual wording was my own.

Sales volumes have certainly come right down in the eastern states and South Australia too. No doubt about that. Adelaide prices certainly WILL fall unless a miracle happens - there's plenty of land around Adelaide and commuting times are relativley short even by Australian standards so there's no real scarcity value to housing there. Also the economy is a little shaky given its high dependance on the troubled Mitsubishi car factory and various other manufacturing businesses that could potentially close or relocate.

Looks like I'll have to add Adelaide to the "falling" list although I do think that it is still doing a little better than Sydney, Canberra, Melbourne and Hobart (but not much better by the looks of it). :D

I know of a professional landlord and share trader / investor who is based in Adelaide who now seems to be reasonably bearish on real estate. To my understanding, they have sold their less attractive properties and eliminated their debts. They have still kept some properties (which they own outright) which are in prime locations (near the beach etc) and are apparently still returning a decent rental yield. That said, their basis seems to be yield rather than capital vaule - they are busy running a business and trading stocks too so they are happy for the properties to just sit there earning from the rent. They won't be looking to sell until the NEXT market peak (that's why they have got rid of the ones with mortgages etc) and I think they are in the development business to and can add substantial value at minimal cost to these properties before they sell. But they seem to have no doubts as to which way the market is heading next - DOWN.

:)

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- Originally listed at $495k 18 mths ago

- Reduced progressively, and down to 410k as at 3mths ago

- Auctioned today, sold for 345k (vendor had arranged auction, but two banker types were 'holding his hand' and basically forced him to accept the highest bid - ie, a forced sale !)

Hi, can you tell me the address or at the very least the suburb of the property? Thanks.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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