The Financial Times has an interview with Jeremy Grantham, founder and chief strategist at GMO, on bubbles. Mr Grantham has identified over 34 bubbles over the years based on the 40 year event based from price and volatility. At present 32 of the 34 bubbles have moved back to trend …
According to Veda Advantage, Mortgage applications plunged 15 percent in the March quarter compared with the same time last year or 8 percent from the previous quarter. Last Saturday, the Federal Government reversed changes to foreign investment legislation which saw a flood of foreign buyers, typically from China make up …
The China Daily today published figures from the China Index Academy (CIA) showing the China residential property market is beginning to cool. Of the 35 cities the CIA monitors, 21 showed a fall in the number of sales last week. Hangzhou suffered the largest drop in transactions with a fall …
The Rudd Government has today announced a crackdown on foreign property investors reversing many of the changes it made hastily in 2008 under the umbrella of “Administrative Changes” and imposing tougher penalties on anyone breaking these laws. With house prices in decline in 2008, Wayne Swan made changes to the …
According to The Economist, Australian housing is now 56.1% overvalued based on the long run average of price to rent ratios. The price to rent ratio is seen as similar to that of the PE (price/earnings) ratio used to value shares. Australia is in 1st position on the leader board …
The federal government has no idea how many Australian properties are being snapped up by foreign buyers. According to the Sydney Morning Herald, a government analyst confirmed that no data has been kept on purchases since the administrative changes to the foreign investment laws opening up the flood gates to …
In a bid to further restrict the speculative housing bubble in China, the central government has raised the minimum deposit for families purchasing a second home from 40 to 50% and set the minimum deposit for First Home Buyers purchasing property that is larger than 90 square metres at 30%. …
According to data released from the Real Estate Institute of Victoria, the Melbourne median house price fell two percent in the March quarter. This comes amid claims the market was glowing white [hot]. On Tuesday this week, the Sydney Morning Herald said buyers were retreating from the Melbourne property market …
The China Daily has reported on a 467 percent increase in trading volume for Shenzhen second hand houses in March as speculators headed for the exits. The report from the Wuhan Even News on Friday even suggested that some investors have hundreds of homes for sale. » Speculators leaving Shenzhen …
Figures from the Reserve Bank of New Zealand show the number of mortgage approvals in the first quarter of 2010 was down a record 30 percent over the same time last year. The overall value of loan approvals fell 25.2 percent to just $578.2 million. » Home loan approvals take …
Official figures out today from the Australian Bureau of Statistics show home loan approvals fell 1.8% in February, the fifth consecutive fall. This has prompted some economists to forecast house asset price falls in the next coming months. According to the Sydney Morning Herald, Matt Robinson, an economist from Moody’s …
The Adelaide Advertiser today published figures from the Valuer-General showing the medium house price in Adelaide is now $405,000. The Advertiser expresses concern of its sustainability, writing “Property owners have benefited from the 243 per cent increase in housing prices over the past 10 years, but those seeking to enter …
Last week, the China Daily reported that predictions of China’s housing bubble crashing in 2011 had flooded the Internet after a comparison was made between China’s runaway property market as that of Japan in 1991. The correction in Japan’s market caused a depression and 20 years of pain. According to …
The Reserve Bank of Australia has today raised the official cash rate from 4 per cent to 4.25 per cent and says there is more to come. In a media release following the rise, the RBA said “Interest rates to most borrowers nonetheless have been somewhat lower than average. The …
Housing Minister, Tanya Plibersek indicated in a interview with the 7:30 report, that one of the objectives of the First Home Owners Boost was to keep the construction sector strong. According to Plibersek, the construction sector accounts for about 9% of employment in Australia. But as predicted, when the government …
According to statistics released by the China Land Survey and Planning Institution, house prices in China increased 25 per cent in 2009, the biggest increase since 2001. However, data from the National Bureau of Statistics suggest house prices only rose 1.5 per cent in 2009, a five year low. While …
Any doubt Australia was not experiencing an ever accelerating housing bubble was squashed yesterday, when RP Data – Rismark released house price data for February. In Darwin, Residential Property (Units & Houses) increased 19.7% for the year to February 2010. This was closely followed by Melbourne (19.3%), Canberra (14.7%), Sydney …
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