Sydney drops 4.7% over last six months - what do you think is happening?

Discussion in 'Property Market Economics' started by emza, 22nd Apr, 2016.

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  1. JDP1

    JDP1 Well-Known Member

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    Yes. When everyone has multiple sources of income (however sourced, legal or illegal) and they all want the same pieces okif RE , the price of RE climbs to levels that only such people with multiple income strwams can afford...eg chinese and indian cities.
     
  2. Cinch

    Cinch Well-Known Member

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  3. Tenex

    Tenex Well-Known Member

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    No it is not exactly a linear function and what I mentioned previously is an example of why and how the drop in interest rate contributes towards affordability

    A matter of opinion but you have to understand certain other things such as weather, availability of facilities and standards of living, job market, quality of life etc.

    For example majority of European cities are ridden with housing commission, terrible standards of living and often bad employment availability. The very top end of the market could be different but thats not exactly where a lot of people live.
     
  4. Graeme

    Graeme Well-Known Member

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    The countries that I've spent the most time in are the UK, Netherlands and Australia.

    I think that calling Sydney a global city in comparison to London is something of a stretch. It has fewer opportunities, less cultural attractions, and poorer services.

    That's not to say London is the promised land. I moved away at the end of 2014, and don't regret it. There are a lot of downsides, including expense, pollution, and the weather.

    As for housing, the average new build in Australia is about three times the size of its counterpart in the UK, and more than twice as big as other European countries. But the standard of construction tends to be lower here. Things like double glazing, hydronic heating, and high levels of insulation have been standard in the UK for years, but tend to be selling points in Oz.
     
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  5. Gockie

    Gockie Life is good ☺️ Premium Member

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    ... we rarely have bad weather outside in Sydney. ;)
    Even Winter we usually get temps in the high teens or sometimes even low 20's.
    It can be hot in summer but if you have good ventilation and fans that can be good enough.
    Insulation does help but the rest of what you said above isn't so necessary.
     
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  6. Ouga

    Ouga Well-Known Member

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    Double glazing and insulation is about energy preservation: keeping the cool in in summer, the warmth in in winter without wasting energy to the outside environment. Add to that the benefits in terms of noise insulation too. I too find it really surprising this is not standard across the board type of stuff in Australia. When you think houses are built to last decades, the waste in energy (and the cost associated with that) is staggering compared to the little extra it could cost during construction.
     
  7. Whit01

    Whit01 Member

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    You definitely realise the benefits of double-glazing over here in Edinburgh. In the tenement flat we were in prior, it was the dead of winter last decemberish and only had the heating on low at peak times. Otherwise off.
    Fast forward to the new flat without double glazing and at the end of winter, need it on full time. If you sit near a window, there's a even a cold breeze on the back of your neck. One thing I'll be looking out for now on.
     
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  8. God_of_money

    God_of_money Well-Known Member

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  9. hash_investor

    hash_investor Well-Known Member

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    big surprise... people realize a rate cut is inevitable
     
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  10. RetireRich101

    RetireRich101 Well-Known Member

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    Gees that must be a disappointing result .....for the sydney doomsayers
     
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  11. God_of_money

    God_of_money Well-Known Member

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    where is @sash ..??
     
  12. Gockie

    Gockie Life is good ☺️ Premium Member

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    Thete's only 1 house for sale in my old suburb, and it's due to sell in 2 weeks at auction (there's typically 5 homes on the market so stock on market is extremely tight). Last weekend the only other home for sale sold at auction for 1.95mill. The vendor would have been happy if they got 1.8mill. I would have liked to watch that auction but not to worry.
    The market looks strong for me :)
     
  13. emza

    emza Well-Known Member

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    Core RP use a different measure which values all properties.

    The median still dropped 4.7% over six months. The median can still go down even as some house values go up. Also, they don't discuss how or what Core were measuring.

    Basically, the topic of the thread and this new info are not opposite findings.
     
  14. sash

    sash Well-Known Member

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    Ditto...stats ..stats...the underlying exactly what you said..how they are measuring things. People are like leemings...they will keep jumping into the Ocean.....until it is too late.
     
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  15. God_of_money

    God_of_money Well-Known Member

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    Show me your property statistical analysis....using SPSS software
     
  16. RetireRich101

    RetireRich101 Well-Known Member

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    In this very 2nd post of this thread, you acknowledged that:

    So you only believe in stats when they are of benefit to you?
     
  17. Steven Ryan

    Steven Ryan Well-Known Member

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    The article was referring to this: Home values in Australia continue to rise as rental yields slip to new record lows

    [​IMG]

    For those interested:

    Methodology: The CoreLogic Hedonic Home Value Index is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property comprising the index into its various formational and locational attributes, differing observed sales values for each property can be separated into those associated with varying attributes and those resulting from changes in the underlying residential property market. Also, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the stock of residential property comprising an index can be accurately tracked through time. CoreLogic owns and maintains Australia's largest property related database in Australia which includes transaction data for every home sale within every state and territory. CoreLogic augments this data with recent sales advice from real estate industry professionals, listings information and attribute data collected from a variety of sources. For detailed methodological information please visit www.corelogic.com.au
     
  18. God_of_money

    God_of_money Well-Known Member

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    Can you explain this for me or you can learn statistics101 before postings
     
  19. Gockie

    Gockie Life is good ☺️ Premium Member

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    ....The median can still go down even as some house values go up. ...

    What's the question?
    Sounds entirely possible...
     
  20. God_of_money

    God_of_money Well-Known Member

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    Unlikely.. unless sydney has lots of cheap housing, not just simple statistic to calculate median

    Hedonic models and real estate valuation
    In real estate economics, hedonic pricing is used to adjust for the problems associated with researching a good that is asheterogeneous as buildings. Because buildings are so different, it is difficult to estimate the demand for buildings generically. Instead, it is assumed that a house can be decomposed into characteristics such as number of bedrooms, size of lot, or distance to the city center. A hedonic regression equation treats these attributes (or bundles of attributes) separately, and estimates prices (in the case of an additive model) or elasticity (in the case of a log model) for each of them. This information can be used to construct a price index that can be used to compare the price of housing in different cities, or to do time series analysis. As with CPI calculations, hedonic pricing can be used to correct for quality changes in constructing a housing price index. It can also be used to assess the value of a property, in the absence of specific market transaction data. It can also be used to analyze the demand for various housing characteristics, and housing demand in general. It has also been used to test assumptions in spatial economics.

    The Uniform Standards of Professional Appraisal Practice, or USPAP, provides for mass appraisal standards to govern the use of hedonic regressions and other automated valuation models when used for real estate appraisal. Appraisal methodology treats the hedonic regression as essentially a statistically robust form of the sales comparison approach.[5] Hedonic models are commonly used in tax assessment, litigation, academic studies, and other mass appraisal projects.
     

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