Housing costs are a big problem for young people. Home ownership is falling fast in Australia, especially among the young and poor. Fewer than half of 25-34 year olds own their home today. Home ownership among the poorest 20% of that age group has fallen from 63% in 1981 to 23% today. At this rate almost half of retirees will be renters in 40 years time.Read More
The Australian property market peaked in mid 2017. Since then prices have fallen by 6% on average nationally. Prices are down 13% in Sydney and 10% in Melbourne. These falls are the largest since the 1980s, albeit off the back of a large growth spurt which commenced in 2013. Overall, Justin Fabo of Macquarie expects the overall drop may be around 20% in Sydney but that it is very difficult to predict its timing. He says that it is too early to say whether recent improvements in auction clearance rates point to a bottoming in the market.
He says that although the level of housing approvals has dropped dramatically it will be 3 to 4 years before net migration turns the demand/supply balance to lead to a strong recovery in prices.Read More
As property prices in Sydney have soared so have the revenues flowing to the State government as it rakes in record levels of tax revenue through the stamp duty on property transfers. This stamp duty, approximately 4% of each property transfer, is a significant impost which increases the savings threshold for first home buyers and acts as a brake on mobility in the property market.Read More
Historically Australian government strategy, implemented via the FIRB, has been to funnel foreign investment in real estate into creating more housing stock. According to the report, that was the case this financial year with 85% of approvals being for new dwellings or vacant land for development. But we also know that there have been problems with compliance with this law due to poor oversight - many overseas buyers were simply ignoring the guidelines and buying local real estate anyway.Read More
45% of the new full-time jobs on the Sunshine Coast over the last five years have been in construction. Across all employment types, the Sunshine Coast saw full-time jobs losses last year of 210 and a 1,155 fall in construction positions. The Sunshine Coast is creating jobs but not necessarily full-time ones. This will have an impact on what type of housing is needed and where it is located.Read More
In this month’s edition, the real estate slowdown across the country continues, with Domain Group data showing national property prices slumping 1.2% in the 3 months to March. Over the year however, prices were up 6.3% on CoreLogic data, with Tasmania taking out top spot for six of the 10 most sought-after suburbs in the country.Read More