Jump to content
House Price Crash Forum
The Masked Tulip

Australian House Prices To Rise By Up To 20 Per Cent

Recommended Posts

http://www.news.com.au/business/money/stor...5013951,00.html

0,,6672172,00.jpg

AUSTRALIAN house prices will rise by nearly 20 per cent over the next three years, buoyed by the "current heat" in the market surrounding first home buyers.

That’s the forecast from research house BIS Shrapnel’s Residential Property Prospects report - based on data from the Real Estate Institute - released today.

BIS Shrapnel’s Angie Zigomanis said activity in the lower end of the market - buoyed by the boost to the first home owners grant and low interest rates - were generating “green shoots†of recovery.

The report says average house prices in most capital cities will grow by between 11 and 19 per cent over the next three years. In real terms (where prices are adjusted for inflation) the level of percentage growth is about half.

Mr Zigomanis, who said actual prices were more indicative than prices adjusted for inflation, predicts the boost to the first home owners grant combined with low interest rates would kick start further activity in the “upgrading†market.

No vested interest there then.

Share this post


Link to post
Share on other sites

I do not understand the Oz press/media?

They must have the most overpriced, poor quality housing stock in the developed world, the prices are truly astonishing?

Yet they keep pumping out this cr@p, rents are high, prices are stupid. You could get twice in Florida/California for what you can get in say Brisbane. I mean Oz is Australia for f00k sake? HARDLY a major player?

Whats going to happed, who know's, i think they will crash big styly, i think they will, but when? :lol:

Share this post


Link to post
Share on other sites

No vested interest there then.

The Australian socialist government (K Rudd) has mortgaged the country's future by increasing the A$7,000 grants to A$21,000 for a new home buyer and A$14,000 for existing properties.

The result of this policy has been a dramatic increase up of prices for newish/1st home properties

Share this post


Link to post
Share on other sites
No vested interest there then.

The Australian socialist government (K Rudd) has mortgaged the country's future by increasing the A$7,000 grants to A$21,000 for a new home buyer and A$14,000 for existing properties.

The result of this policy has been a dramatic increase up of prices for newish/1st home properties

What is it with this Anglo-Saxon obsession with high house prices and property bubbles? :rolleyes:

Share this post


Link to post
Share on other sites
No vested interest there then.

The Australian socialist government (K Rudd) has mortgaged the country's future by increasing the A$7,000 grants to A$21,000 for a new home buyer and A$14,000 for existing properties.

The result of this policy has been a dramatic increase up of prices for newish/1st home properties

surely only by the grants....the rest would be borrowed. and their banks are as fooked as ours are.

Share this post


Link to post
Share on other sites
surely only by the grants....the rest would be borrowed. and their banks are as fooked as ours are.

....not quite. As a relatively 'new' country the australian government has a 'Future Fund' (i.e fixing the roof while the sun shines!). The fund was set up as a quarantined investment to raise $140 billion by 2020 to meet the unfunded superannuation liability of federal public servants. Rudd has raided this future investment to pay for a variety of idiotic short term spending policies, including incentives for FTB.

Share this post


Link to post
Share on other sites
....not quite. As a relatively 'new' country the australian government has a 'Future Fund' (i.e fixing the roof while the sun shines!). The fund was set up as a quarantined investment to raise $140 billion by 2020 to meet the unfunded superannuation liability of federal public servants. Rudd has raided this future investment to pay for a variety of idiotic short term spending policies, including incentives for FTB.

Probably best for fact-hungry HPCers to ignore most of this "info" about the FF.

Share this post


Link to post
Share on other sites

Interesting, contrarian article, but you're being a bit lazy with your labeling , MT. Where's the VI? BIS Shrapnel aren't EAs and they don't have anything to do with EAs. The data may include that sourced from the real estate institutes but their sources are typically checkable and have shown drops and stagnation in NSW in recent years and so perhaps they are realistic. Also, BIS would add a whole load of other data to produce they're forecast. The company covers many different aspects of the economy and are considered to be balanced if not bearish forecasters.

That being said, the last thing this world needs is more double-digit house price growth and, personally, I can't see this happening here (I hope). Then again, this is only forecasting max 19%+ growth over the next three years (which is what, 4.5% pa?) which is hardly bubble growth.

EDITED for formatting issues.

Edited by aussieboy

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   289 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.