There are 80,000 reasons why Australia's property market will struggle to bounce back

Thousands of new units in Sydney will likely put a brake on the speed of a rebound in Australian property prices.spreads deeper into the economy. That's how many apartments were completed in recent years in Sydney - adding about 5 per cent to the housing stock - while Melbourne and Brisbane have also seen relatively large additions, according to the Reserve Bank.

"We've seen the numbers of people attending our open homes drop dramatically," said real estate agent Alex Chidiac, while hosting an inspection of a three-bedroom apartment looking over the city's Parramatta River."If this was on the market say two years ago, we would have expected at least 10 groups coming through on a Saturday. Now we're averaging around 3 to 4."

Nationwide house values are down an average 8 per cent since their 2017 peak and more than 14 per cent in Sydney. "That means that income growth will slow further, and it also brings into play the prospect of forced selling in the housing market, which is not something we've had as of yet."Australia's property obsession soured largely thanks to a self-imposed credit crunch within the nation's banks after they became the most exposed to housing in the world. A probe into the finance industry saw lenders become tougher on mortgage borrowers, especially for riskier investment loans.

Bull crap

Still way over-priced. Have a look at rural prices; only direction is down under a ScoMo government.

Can’t run an economy on household debt ? Something has to give.

If you cop a look at some of these shitholes they are flogging for 1m plus, you'd be out of it years ago. Point being, what do you call a pile of greedy fucks trying to get out of the market quietly? Sounds like it should have a name.

Supply only outstrips demand because the Banks have turned off the finance taps. As soon as they start lending again, pent up demand will vacuum up those 80K appartments quicker than they could build another 80K!

They don't need to bounce back. They're over-priced enough as it is. But who gives a stuff about the rest of us who can't even break in, right?

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There are 80,000 reasons why Australia's property market will struggle to bounce backAustralia's ailing housing market got a triple tonic this week, but there are doubts over just how fast property prices will recover. 80000 ? would that be the number of badly designed units that all look alike have no solar panels or rainwater storage no gardens no walking distance bus train shops library schools parks etc Has any reporter actually asked the Premier what her Fair Trade Minister has done since the Opal Tower fiasco? You would be an imbecile to throw your money away on the junk being constructed now. Labors fault that's right the LNP won!
Source: smh - 🏆 6. / 80 Read more »

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