Property prices beginning to drop

Pretty sure Melbourne's Southbank had a vacancy rate of something to the tune of 16% in the past month or so. It was in the top 5 for high vacancy postcodes nationwide and is also home to some of the largest vertical cruise ships being built in the city/nation.

 

Docklands 3008 which I've been monitoring closely. This data is only to May, so I expect it to keep increasing.



SQM Research - Property - Residential Vacancy Rates - 3008

 

Barry Plant Docklands latest window display of places to let (mainly Docklands, a few CBD) lists 72 properties (nearly all apartments obviously) for rent, next to nothing over $500. Pre virus it would normally be 20-24.

 

Thanks for the link rizzle

Confirms my recollection about Southbank. According to SQM it reached 16.8% in May

 

Covid doesn't discriminate?

 

In the last 3 weeks or so supply in the suburbs I’m looking at is drying up very hard. And because of this a couple houses have recently sold for significantly higher prices than they would have a few months ago. They were pre auction offers, one after just one week of the campaign

 

Virus outbreak reignites 20pc price fall fears

AMP chief economist Dr Shane Oliver:

“The lockdown poses a renewed threat to the economy, which ultimately is a negative for the property market.

“I was looking for around 10 per cent price drops in Melbourne and Sydney. With the virus outbreak, the risk of a 20 per cent house price fall has emerged again.

“The market is in a pretty precarious situation at the moment.”

 

Maybe a mix of Airbnbs and missing students

If an older people or a person with underlying health issues gets it they'll be much more likely to die.

Cold workplaces, eg. Meat packers, working hard, breathing hard in close proximity to each other is well known for spreading the disease.

Sharing of simple things like salt shakers or cigarette lighters can spread it.

The people in the towers are less likely to read or understand the literature out there on the disease.

I think they are in greater risk of the disease.

 

No discrimination at all but lifestyle and environment play a big part in its spread

 

I don't know a lot about the people in the towers but I'd reckon whoever was living in those towers would be in trouble if a few random people started an outbreak in there.
A lot of less fortunate countries than us actually have really good hand hygiene as they have been fighting bacteria and disease a lot longer than us.

I don't disagree that they are a high risk I'm just saying.

 

Free virus money and low listings have kept the mockery going.

I reckon it’s half off the cliff now. In January when those who still work return to their jobs they hate with massive credit card debts , overweight with a Xmas hangover , with no more super withdrawals or virus money the reality will set in.

The only people buying now are OOs who sold post July 2019 and FOMO money land buying Homebuilders using first time vendor grants, FHLDS and Frydenbuild virus money.

 

That is not true.

 

Sydney city area is pretty bad at the moment too. Alot of vacancy. Luckily I was able to secure a tenant on a 12-month lease recently, at a reduced rent of course. I hope things pick up at some stage.

 

Where is this?

we are keen on Kingscliff casuarina Caba etc

 

I've had a few people selling in Sydney and buying in Brisbane. Yields are tough in Sydney at the moment. Anything above 500-550 in Brisbane (houses) seem to be attracting a lot of buyers at the moment.

 

The further away you can get from the Mebournians, the better

 

Plently of people buying, you are incorrect.

 

While I don't fully agree with @DueDiligence I will be interested to see if your view holds up in 6 to 12 months time.

 

Take a drive around Brisbane , look at the vacant commercial premises , look at the vacant residential , it wasn’t even remotely like that even in UK in 2008 as bad as that was , property will be very lucky to stay stagnant , most likely to drop the only question i think , is now by how much and how fast

 

Don't think so..don't think the sharemarket is going to test the March lows again as well (notwithstanding something else from left field).

People are over the initial shock and mystique of C19 and will 'cope' better with bad news. Proof? Just look at the DOW. Apart from Govt stimulus, zero reasons for it to rise, terrible economic prospects in the short term, and yet it seems to be holding out.

FWIW, I think (guess) it will head south again possibly on a sustained basis...perhaps even after a vaccine is discovered.

But as far as 20% falls in resi, my guess is no it won't.