Sydney prices " go through the roof " - ABC 24

As I turned on the TV this morning ( ABC 24 , 8.20 am ) I was greeted by the lead article in the finance report.

" Sydney Prices go through the roof " further commentary revolved around the current " affordability " of houses in Sydney , median ( ? average price , cant remember which ) had cracked 800K and with the 5 year loans of two major banks dropping below 5 % , the finance commentator predicted further competition as people raced to lock in the low rates .

I tried to find a link but couldn't

Cliff
 
As I turned on the TV this morning ( ABC 24 , 8.20 am ) I was greeted by the lead article in the finance report.

" Sydney Prices go through the roof " further commentary revolved around the current " affordability " of houses in Sydney , median ( ? average price , cant remember which ) had cracked 800K and with the 5 year loans of two major banks dropping below 5 % , the finance commentator predicted further competition as people raced to lock in the low rates .

I tried to find a link but couldn't

Cliff

I think you are right on the money,Brisbane is starting to move in prices been looking for about six weeks now for one of our daughters,put 3 contracts one prior to the listing all of those properties sold ,,if she was prepared to go the extra 50k then she may have well bought one that now has a development sign outside the property all within 7 weeks from the for sale sign going up on the front fence,,..imho..
 
That links to the info but not to the particular presentation.

There's no pleasing some people.... :rolleyes:

Btw cliff, it could be a good idea to keep a bucket of water handy. Even from here I think I can see your fingers smouldering from you rubbing your hands so fast.
 
There's no pleasing some people.... :rolleyes:

Btw cliff, it could be a good idea to keep a bucket of water handy. Even from here I think I can see your fingers smouldering from you rubbing your hands so fast.

Mark I don't a bucket will be enough at this stage . I might need a cold shower . We're planning on selling our PPOR in the next months and at the moment all the property gods seem to be aligning .

Cliff
 
I hadn't checked clearance rates for the last couple of weeks , but a quick check shows they've moved back up in the last two weeks , closer to 80 %

http://news.domain.com.au/apm-news/sydney-july-19th-auction-report-20120423-1xfsg.html

The Sydney auction market continued its revival at the weekend reporting back-to-back 77 percent plus clearance rates for first time since May. This indicates that there is plenty of life left in the mid-winter market that clearly remains positive for sellers with house prices set to continue to rise.


Cliff
 
Could see 500K for an old fibro ex houso in the Druitt:D revenge of the bogans. I think I need that cold shower now. Down boy!! lol
 
Could see 500K for an old fibro ex houso in the Druitt:D revenge of the bogans. I think I need that cold shower now. Down boy!! lol

Mid 400's is what I'd expect if we have the typical doubling each cycle .

500 k ... Might be a couple of suckers . I remember talking to a very happy investor around ten years ago who was happy with the bargain he'd picked up ? Around 240 ...

Cliff
 
Mark I don't a bucket will be enough at this stage . I might need a cold shower . We're planning on selling our PPOR in the next months and at the moment all the property gods seem to be aligning .

Cliff

If you're selling your PPOR to buy another in the same market, these price gains just mean more stamp duty you're paying. It's even worse if you are upgrading, as the differential price is even greater now.

Alternatively, if you are just cashing up, downgrading or moving to Canberra, which went down in price, then it is all sunshine, lollipops and rainbows for you! :D
 
With all these international $$$ rolling into the market it's hard to see it stopping very soon or very suddenly. Especially in Sydney (which gets much more international attention than any other AU capital city). I think unless there is some regulatory measures (similar to Hong Kong's 15 per cent surcharge on non-residents buying into their real estate market) we won't see a sudden hard crash of valuations.

The danger is that Sydney can become a version of Vancouver where no middle class family can afford to buy a property since the market is heavily dominated by unregulated foreign investments and heavily inflated prices. Vancouver has become one of the most unaffordable real estate markets in the world due to a surge of international immigration and offshore investing. The only people who can afford to purchase housing in Vancouver are extremely wealthy, usually from offshore and often able to buy in cash. So good luck to the local middle class in competing with that.
 
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