RBA fears price collapse

RBA fears price collapse:

https://a.msn.com/r/2/AAolp9e?m=en-au

 

Reserve Bank worried about collapse in apartment prices.
.........and they should be worried for prices paid for OTP apartments in areas of over-supply for all the reasons most posters on here keep banging on about year after year.

 

Yes their wording was not a broad based statement that all property markets will collapse. The media said that. They expressed a concern that greater lending regulation and restrictions may need to be considered to counter what is appearing a oversupply in some markets that could lead to prices falling harming some markets and borrowers and placing the banking system at risk to losses.

"a looming over-supply in Brisbane and possibly some parts of Melbourne"..Sydney less a worry the Asst Governor said. I would think there are also some pockets in Sydney at risk.

I was watching Today a few weeks back and reckon half the worlds cranes are on each side of the Brisbane river.

 

The initial Sydney Morning Herald headline was "House Price Collapse". Seems they corrected it.

 

As always , RBA late to the party... Correct me if i'm wrong but any one following building and construction approvals could have seen this one coming.
I would also think that foreign buyers would be mostly affected by this since they are a major force in buying OTP apartments

 

Yeah apartment collapse has already started since last year.

Imho there will be flow on effect to house prices which will get hit once credit at banks seizes up from developer defaults and when rentals sink further.

Pretty sure there are a lot of local investors with skin in the OTP game.

Whatcha gonna do when dem China men fail to settle and dump their thousands of otp units? Perhaps gov can buy em and use as cheap cbd community housing?

The dominos are falling. Splat!

 

In Brisbane CBD, yes.... will be ugly. Melbourne...not as bad. Sydney - some trouble but not anything like Brisbane...

 

hard to say though, anything could happen nowadays.

"Barangaroo yes i am looking at you"

 

The US Fed just raised rates by 0.25%!

 

If I could pick up a well priced apartment at Barangaroo, I'd do it... perfectly well located... but I just can't imagine any of them would get cheap enough.

 

I'm looking for the same myself - an apartment in Barangaroo to stay during the week.

I don't believe there will be a crash in prices like the doomsayers and leftie media are promoting. The macro fundamentals are still relatively strong for our economy.

 

But what's the historical ratio of approvals to actual commencements and completions? It's not 100% and have heard it could be as low as 6 in 10.

There's also a significant amount that are knock-down rebuilds which means nothing is actually added;

 

It's the readers of ZeroHedge who are spreading panic thinking they know everything.

It's the same people waiting for a crash so they can finally buy a property...the rest just keep making money.

 

Not what this says.

 

Do u have more recent numbers? And maybe without inc. gold coast?

 

How can it be any more recent, we’re in March 2017.

You said it started collapsing last year, it clearly hasn’t.

 

There's houses and units. So what does "Homes" mean in this context?

 

@zed_kid :["How can it be any more recent, we’re in March 2017."]
Well it can be more recent, here you go latest figures up till end FEB 2017.
Monthly Indices | CoreLogic

For someone arguing numbers, you probably have access to these numbers and it seems do not want to put out the latest figures from end FEB 2017..

So for Brisbane inc. GC units now only up 0.14%YoY and it is down -0.34% MoM

For Brisbane alone units have dropped -2.07% YoY and down -0.35% MoM

If it hasn't already started collapsing, it probably is already starting to. We'll see what happens in the next 6-9 months. (on the ground here, definitely units rents are plummeting, pretty sure you can get discounts from developers as well, they are already doing it for the "overseas buyers")
Discounts and 25-year rental guarantees to lure Chinese apartment buyers

@neK : homes probably means both units and houses combined. In the link i provided the corelogic website uses "all dwellings" instead of homes as the person who drew the chart probably put it in themselves.

 

Wait a sec... the median all dwelling price for Sydney for the end of Feb 2017 is listed a shade under 1.1mill.
That would be nice (since I have a few Sydney properties), however I am doubtful?

 

Apartment prices collapsed a long time ago. My cousin bought Upper West Side in Melbourne for $500,000, resold it for $440,000 2 years later.

My friend just bought Golden Age's development on Collins St half a year ago for $1m (2 bedder). I told her she'd be lucky to get $650,000 when it settles.