Be alarmed and alert.... but don't panic

Was still increasing... just at a decreasing rate.

 

Lol? Hk population is going up... Even your article says that but you probably didn't realise.

Your statistic includes a period in there known as SARS and Asian Financial Crisis. That's like looking at 2008 prices and saying American properties only go down.

 

Wow....another doom and gloom thread... Seriously...I been reading somersoft for years and you guys seem to pop up like weeds gasping for attention..in a couple of weeks time this thread will be at the bottom of the pile, where it should be, the only merit and reward I can give the author of this sensationalism rubbish is the latest copy of woman's weekly or new idea

 

Yes.. you are right technically. Generally population goes up everywhere. New houses are also created.
It is always comes down to supply & demand. We don't have a sudden drop in population growth. If anything, more and more people want to come to Australia. Hence, the demand will be there. Response from the supply side is the worry. In Sydney, we were far behind building dwellings. Unless, we build recklessly, we should be fine.

 

Interesting video. I agree that we are in a bubble, at least in Sydney anyway. Even if Sydney wasn't in a bubble, it's growth in the last couple of years represents it's growth for the next 10 years

 

Quick! Everyone buy everything! Don't make contingency plans, this guy knows it all! BUY BUY BUY BUY BUY!

 

You want to buy? I have all sorts of lands for offer. Sell them all to you. Just PM me

 

Does that include long life milk and canned baked beans?

 

What do you mean technically? Do you actually know anything about HK? The Govt has already had to control the immigration very carefully because there's too many people, and that's one of the reason there's riots on streets.

Do you know how many tourists visit the city each year? This entire country doesn't get that many tourists in 5 years. Imagine running an airbnb business there and work out how much money you'd make from it. Yet it's falling.

 

Technically - a lot!

 

33 million according to Wikipedia, this is in one city, and in a year where people are rioting against certain tourists indirectly.

 

Most people don't have nous to understand that it will be temporary ...so they will panic and not invest in property. That reduces supply to the market....rents move up and supply of property drops. Less buyers and people are to scared to get in ...the perfect storm...

 

We'll....see have seen the ups and down...business as usual for me.....

 

That's assuming that buyers-that is first home buyers-are willing to sit on the sidelines.My bet is that so long as purchasing a home becomes affordable compared to renting, then buyers will make the jump.

Removing NG will effectively take renters out of rentals & place them into now affordable homes

 

All theortical....all I know is that any govt messing with market forces is playing with fire. Silly in my opinion. Just look at London...prices are high there also...part of living in a global city. But at some point the markets corrects and then another cycle begins.

 

Why are we only concerned with the government messing with market forces now @sash ?

What about....

• The Howard governments decision in 1999 to halve the rate of CGT
• The Howard governments 2000 reintroduction of one of the greatest policy failures in Australian history - The First-Home Owners Grant. $7000 with no income test which was almost immediately cancelled out as it was priced into the market. Seeing that this still didn't appease the property lobbyists they doubled it to $14000 for new homes.
• The Rudd led Labour government in 2008, stuck in stimulus mode then doubled both grants for existing and new builds.

And in 2010 just as our capital cities started to find some sort of equilibrium, the Rudd government relaxed the laws surrounding foreign ownership.

• Allowed 100% of new (off the plan) developments to be sold to foreign investors
• Removed the $300,000 limit that was previously placed on Student Visa holders, allowing foreign students to purchase 1M+ properties as PPOR's and speculate on Oz RE.
• Removed the requirement for temporary residents to notify FIRB (Foreign Investment Review Board) if they purchased an established dwelling
• Allowed foreign-based "companies" to purchase established properties for their locally based staff.

 

I sold up in Melbourne last year as the market in my area peaked. I am waiting for opportunities in the Perth market to buy as the market bottoms out. Prices of the properties I am looking at in Perth are down 30% at this stage. However, prices are still too high IMO and I am waiting for further price falls before jumping in. It's a frustrating position to be in

 

Lol

 

Perth has crashed a lot as I understand. Not too sure what the growth drivers will be. But it may just rebound off the back of sheer mean reversion

 

Perth, still a long way off recovery IMO, plenty of bad news on the horizon unfortunately

go back to Melb, there are still some opportunist for lower end development IMO, FHB territory, just have to make sure the numbers work and demand is strong