The Reserve Bank of Australia has announced that residential property values are just 1.9 per cent short of the all-time records set in 2007 and 2010. Given the ratio of dwelling prices-to-incomes – similar to the ratio at the records – and the record-low interest rates, we may now have reached a price plateau. The RBA report suggests that Australia’s main cities will probably increase in density – and value – over time, regardless of current conditions. Read the full story here.
RBA: You’re lying to yourself about what your house is worth
A study released this week by the Royal Bank of Australia shows that about a quarter of Australia’s homeowners overvalue their homes by as much as 20 per cent. There’s no bias at the postcode level, although postcodes with older homes tend to have more over-valuation. But homeowners with more debt and higher spending are more likely to overvalue their property, while areas with higher unemployment tend to value more conservatively. Read the full story here.
Investor interest, not home ownership, is driving real estate demand
New data from Roy Morgan Research shows that investment property loans in Australia grew by 37 per cent over the last four years, while the number of loans for owner-occupied homes grew by only 4 percent. A quarter of loans today are granted to investors, not homeowners. This growth comes with a proportional shift in loans away from people under 35 and toward investors in their 50s. Read the full story here.
The rate of securitisation is falling along with the volume of loans offered
Looking at first-quarter figures for loans, the total liabilities of Australian securitisers were down by $1.3b, or about 1 percent for the quarter. Mortgages were down, assets were down, and liabilities were down. Loans issued for overseas investment fell. While that might look like the risks appear to be abating, most of these securities are being held by a small group of domestic players in the Australian market. Read the full story here.
High costs for families limits first-timers geographic options … especially if you need a babysitter
Ageing parents and young families with children can’t afford to take a first home on the other side of the country, simply because families are increasingly dependent on one another. “It makes sense that people love the suburbs they grew up in and they look for family support,” said Belle Property Bulimba sales agent Johnathan Harper-Hill. “So long as it’s a suburb where they are not priced out.” Read the full story here.
$280 million Platinum Tower, a 438-unit condo in Melbourne, to break ground in July
The 52 storey tower by the Salvo Property Group on City Road in the art district of Southbank sold out a week ago. It includes one-, two-, three- and four-bedroom units, as well as penthouses, a 360-degree view of Melbourne, and a 50-foot long swimming pool. Read the full story here.
Gunning for a Gold Coast record: $20 million mega mansion on the block
The 390 Spengler Rd, Biddaddaba address comes with a helipad, a panic room, a grand ballroom for 250 guests and a $20 million asking price. At that figure, it would break the highest recorded Gold Coast house sale, a $19 million home on Mermaid’s Beach in 2006. (In real-dollar terms, the record would still stand, of course.) Read the full story here.
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