Australian homes most overvalued in world - survey

K

komstak

Does anyone know where to find the full result of this survey? I'm interested to know where China is? I was expecting China to be ahead of France.

I don't understand why they use ratio of house prices to rents.


-------------------

AUSTRALIANS love to watch their home values rise but a leading magazine says they are way overvalued.

The latest quarterly index of global house prices published in The Economist shows Australian homes are the most overvalued in the world, ahead of Hong Kong and France.

Read more:

http://www.news.com.au/money/proper...vervalued-survey/story-e6frfmd0-1226015960562
 
hahahahahaha you really wanna open that can'o'worms again, joe?

has anyone SEEN french values? i can get a beautiful 4 bed, stone cottage on nearly 5 acres in some of the most picturesque countryside, in little towns only a short (6min) drive from a decent town like Cavaillon or Beaucaire or Montmelliar for a shade over $100k euro.

only 30 or so minutes into major centres like Nimes or Valence where a large portion of the jobs are.

french affordability has never been so good.

why don't we break out the real affordability stats, like Zagreb or Naples or Tokyo.
 
It doesn't matter what measuring stick you throw at Australian property these days, it's overvalued (from a historical basis) on just about any measurement level:

Price vs Rent
Total Land Values vs GDP
Income vs Price
Interest as % of disposable income

We're not talking about 1 or 2 cities that are affected by these high prices, so suggesting there are single cities or small areas which are priced higher than those in Australia seems like a deflection from the real issue.
 
Yawn.
Yes Australia is pricey compared to countries that have an economy in the gutters. Why is this a suprise.
Question is where to from here.
Don't know many people that suggest a boom.
Many suggest modest growth online with inflation
some suggest no growth for years.
Some suggest a crash although we would have to have a crashing economy with it.
5 or so years of flat or no growth in Australia along side recoveries in other countries would close the gap quick smart with minimal pain to owners.

Roll the dice. Who knows.
Important thing is where will values be
IN TEN YEARS.
 
Here are other interesting surveys:

Numbeo: House Price to Household Disposable Income Ratio London 15x, Singapore 14x, Tokyo 12x, New York 8x, Dublin 8x, Sydney 7x

GlobalProperty Most Expensive Cities 2009 (apartment price per sqm) Sydney - Number 28

Mercer Most Expensive Cities (cost of living, including housing) Sydney - Number 21

CityMayors Expensive Cities Sydney - Number 24

Knight Frank Survey (prime residential property) Sydney - Number 8:

Overseas Property Mall Survey (Average home values for select family dwellings) - Tokyo $786K, Sydney $683K

World's Top 10 Priciest Cities To Own A Home Sydney - not in the top 10

Aneki (most expensive countries to live in) Australia - Not in top 20
 
"Aussie houses are world's most overpriced"

When you see this sort of stuff in the press...

I think it might be a flag to consider property as an investment again.

Remember the headlines late 2007? Like "invest in property now!" Great returns! No money down! Bad credit? No problem, you can own an investment proprty! FHOG! Hurry Hurry!


I am suggesting there are compelling signs this is the bottom in Australian residential real estate today.


4/3/2011
 
A 4 bed 2 bath 2 gargage detached home @ Kellyville Ridge cost around $550K. Rental income is $29,640. The house price to rent ratio is 18.55. Using "12 - 20" rule, does this mean this property is reasonably priced?
 
Does it matter what The Economist writes about Australian property?
Their readership is 55% North American and overwhelmingly not Australian.

If anything, we should thank them for talking our market down as it will help prevent a foreign investor speculative bubble.
 
Ray Brown said:
"Aussie houses are world's most overpriced"

When you see this sort of stuff in the press...

I think it might be a flag to consider property as an investment again.

Remember the headlines late 2007? Like "invest in property now!" Great returns! No money down! Bad credit? No problem, you can own an investment proprty! FHOG! Hurry Hurry!


I am suggesting there are compelling signs this is the bottom in Australian residential real estate today.


4/3/2011
Click to expand...
This is certainly no suggestion of a bottom!
Even at the peak of most booms you see reports that there could be a fall due to being overpriced.

We still see ''invest in property now'' headlines around the place and still very low deposit % required, so could that suggest we might still be at the peak?
 
Sunfish said:
Minimal pain to owner/occupiers but I would not want to be neg geared for that long.
Click to expand...

True. But I guess that comes down to your cashflow.
If you buy at the top of the market at a massive cashflow loss expecting a fast CG to make up for it. Well I think dissapointment or worse is heading your way.

A smaller cashflow loss and a longer term view is a bit more acceptable I believe.
But there are many variations of the above. Up to the individual in the end I guess.
 
Start of fall will be in apartments, big glut of the buggers on the market now and under construction. Australian economy is going to be LOL in a while.
 
Beebop said:
Start of fall will be in apartments, big glut of the buggers on the market now and under construction.
Click to expand...

Mrs H and I are in our late 60s and looked at the possibility of buying an apartment. There was nothing we could live in less than $800k. And ANYWHERE in the city low life roam the streets. So we chose a big house on a big block in a quiet neighbourhood for nearly half the money.

Anyone with an apartment in Townsville has a toxic asset IMHO.
 
Beebop said:
Start of fall will be in apartments, big glut of the buggers on the market now and under construction. Australian economy is going to be LOL in a while.
Click to expand...

I disagree....

Spoke to our REA & owner of successful agency (20 years experience) & he says there is a strong demand for 2 bedroom quality units from single yuppies, couples and single mature ladies and he can't see it changing as it has just got stronger.


Regards
Sheryn
 
Another perspective from the datasphere:

http://www.theage.com.au/business/d...n-australian-house-values-20110305-1bisk.html

It's not yipee kayay right now except for those manufacturing their growth, however it isn't Armageddon either.

Flat lining (with some exceptions) from where I sit. Some who are heavily geared will have losses (albeit on paper unless they sell, however nevertheless they are losses) for a while feeding sideways tracking investments.

There will be some who hurt and succumb to needing to sell, so there may be some opportunities for those with sensible LVR's who have folding stuff and/or equity (offsets) all ready to be utilised.
 
Exactly right! rents are very low, a bargain at average 4%? The question is, what are the rental yields in all those countries surveyed?
 
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