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Sydney (west And South West) Investor Market Tumbling

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Sydney has a shortage of rental property, the lowest unemployment on record what is happening.

http://www.smh.com.au/news/national/landlo...6617213461.html

Landlords hit hard by slump

Email Print Normal font Large font Matt Wade Economics Writer

August 28, 2006

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AdvertisementTHE suburbs hit hardest by Sydney's property slump - in the west and south-west - also had the most property investors before the housing market peaked nearly three years ago.

Of the 10 NSW postcode areas with the largest number of taxpayers reporting rental income in 2002-03, five were in Sydney's west and south-west - Liverpool, Wentworthville, Edensor Park, Campbelltown and Hoxton Park.

The Liverpool area had the state's largest number of landlords at 5200, although the proportion was higher in Hoxton Park (21 per cent) and Edensor Park, with one in every five taxpayers a property investor.

All these neighbourhoods had lower median incomes than NSW as a whole, analysis of Tax Office data by the investment bank ABN Amro shows.

"Investor participation in the housing market is significantly wider than commonly thought," the research paper said.

Other surveys have found it is common for investors to buy properties near where they live. This suggests many investors in the west and south-western suburbs have experienced significant losses as a result of falling property prices.

Separate research commissioned by the Herald shows the housing market in that area weakened considerably in the year to June, despite solid gains in some other parts of the city.

The market for units - favoured by many investors - has been hit especially hard in the west and south-west.

In the past two years the median unit price has fallen 12 per cent in the south-west and 10.4 per cent in the west. In the Canterbury-Bankstown area the median unit price has dropped 14 per cent to $245,000 in that period.

Last financial year the median unit price fell in 86 per cent of Sydney's south-western suburbs and in 66 per cent of suburbs in the west, Australian Property Monitors figures show.

An ABN Amro economist, Kieran Davis, said this month's interest rate rise - the second this year - was likely to do further damage to the property market. The Reserve Bank has indicated another rise is likely this year.

TOP INVESTOR SUBURBS

1. Liverpool (5200, 15% of taxpayers).

2. Baulkham Hills (5100, 20%).

3. Wentworthville (4300, 16%).

4. Gosford (3900, 13%).

5. Edensor Park (3800, 20%).

2002-03 figures. Source: ABN Amro, Tax Office

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OZ looks like its going down hard:

http://www.smh.com.au/news/Business/Small-...6617282525.html

Small business expectations 'plummet'

August 29, 2006 - 1:24AM

Small businesses are growing more concerned about the future of the Australian economy by the day as rising fuel prices, softer business demand and higher interest rates drag down sentiment, a survey shows......./
The short-term indicator, which measures the perceptions of the current state of the Australian economy, also plummeted 26 percentage points from the previous quarter to a negative three...../
However, profitability was lower, with the indicator down two percentage points to a negative four per cent.
Employment also dropped during the quarter, with the indicator falling two percentage points to a negative one per cent.
"On balance, more SMEs reduced their employment in the past quarter than increased it," Ms Singh said....../
"This quarter sees the
lowest result for capital expenditure in the history
of the Sensis business index," Ms Singh said.
"There is uncertainty about Australia's future economic direction, and this is impacting SMEs confidence to invest."

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  • 301 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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