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The Masked Tulip

Australian Luxury Home Prices Fall As Rates, Dollar Dent Demand

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Dec. 22 (Bloomberg) -- The number of Australian homes worth A$1 million ($1 million) or more listed for sale is about 40 percent higher than average for this time of year, Real Estate Institute of Australia estimates, suggesting price cuts in 2011.

“There’s about a 5 percent gap in what sellers expect and what buyers are willing to pay,” said Perth-based David Airey, president of the institute. “In the first and second quarters of 2011, there will be a rise in activity as sellers adjust prices down.”

:blink:

http://www.businessweek.com/news/2010-12-21/australian-luxury-home-prices-fall-as-rates-dollar-dent-demand.html

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Have seen it a bit around here (SE Qld). Anything above a basic home has been sticking. In fact, the price reductions of some of the better homes have been reduced to the point where there is very little difference between them and a crappy new build. Reductions on the order of 10% seem quite common. There is one "architect designed" with lovely views across the entire valley on a good road for about AUD$450k on 1250sqm that hasn't sold. Not so long ago I would have expected closer to $650k for the same house. Given that builders want about the same for new build on 550sqm in a sweltering ditch...well, something has to give.

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I have a relative who has found this out for real. In 2006, building blocks adjacent to her house (all half the size of her own block) sold for 7 figures. After 2 years on the market, with only 2 offers, the gaff has just sold at a drop of over 50% on the prices of those heady days.

Just as the wave works outwards from its epicentre (ie the major cities), sure as eggs is eggs the wave will wash back to whence it came.

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  • 312 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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