The Australian Newspaper has reported International Hedge Funds have been shorting Australian Banks for fears of a housing crash in Australia. According to the paper, a unnamed New York hedge fund manager said there were doubts the strength of Australia’s property market could be sustained. “There’s a lot of scepticism …
The Australian Bureau of Statistics (ABS) has today reported home building approvals have fallen 14.8% between March and April this year, seasonally adjusted. April is the third month building approvals have moved downwards, and this follows the sixth straight month of falling home loan approvals. » 8731.0 – Building Approvals, …
The number of properties being listed is surging around the country with experts predicting some owners are heading for the exits. Data from the REIV reveals there were 924 reported auctions last weekend, 900 scheduled for next weekend and a record 1000 the week after. Louis Christopher from SQM Research …
The Northern Territory News has reported that houses in Darwin are now more expensive than in New York and London. Figures from Residex and APM has the median price of a Darwin house at $549,035, or $90,000 more expensive than London. A freestanding house in New York is $80,000 cheaper. …
In a National Economists Club luncheon in Washington on Thursday, IMF economist Prakash Loungani warned New Zealand, Australia, the Netherlands and Belgium had the “biggest misalignment” with historical price to income ratios and that Canada, Sweden, Norway and Australia had the biggest misalignment in terms of price-to-rent values. In his …
A report from the University of Melbourne Centre for Corporate Law and Securities Regulation shows bankruptcy is rising and becoming a “middle class phenomenon” in Australia. The main cause of bankruptcy in the middle class has been due to unsustainable home loans. Insolvents are increasingly from professional and higher status …
Property “experts” predict first home buyers will be back in the market within 6 months with hope they will prevent a property crash. Property markets are close to frozen at the moment with many property purchases subject to the sale of the purchasers own home within an pre-negotiated time period. …
The Sydney Morning Herald has reported today that the Sydney Property Market has hit a brick wall with auction clearance rates falling, fewer visitors viewing open houses and buyers reluctant to commit. The paper writes : ”None of the vendors are happy,” a Newtown agent, Ee Poh Ling, said. ”I’ve …
Luci Ellis, Head of Financial Stability Department for the Reserve Bank of Australia today said “Recent data suggest that we do not have a credit-fuelled speculative boom on our hands” after data from the Australian Bureau of Statistics out earlier this month showed house prices surged 20 percent across the …
Mortgage approvals continue to plunge around the country, falling to a nine year low in March. The 3.4% fall was the 6th consecutive monthly fall and is a good indicator of what to expect for house prices in the coming months. The 26 percent decline from the peak in June …
In what will be another blow to Rudd policy, the number of victims of the First Home Owners (Vendors) Boost is starting to mount. The Sydney’s Sunday Telegraph has published a story today of several first home owners from Sydney’s southwest where falling prices have resulted in negative equity, and …
The Australian Bureau of Statistics has released their quarterly update to its House Price Index today, showing Australian houses surged an unsustainable 20.0 percent across the eight capital cities in the year to March. This was the largest yearly increase since this index was first created. Melbourne lead the race …
According to Edward Chancellor, author of the book titled Crunch Time for Credit (2005) and a member of US Investment Firm GMO’s asset allocation team, Australia is in the midst of an unsustainable housing bubble that could burst at any time. It’s hard to argue with these claims when reports …
Insurance companies have backed away from the new Home Warranty Insurance Scheme in NSW saying it is not worth their while to insure builders who go broke or are sued for faulty work. This has forced the NSW State Government to take over polices from the 1st July. When Beechwood …
On Friday, Beijing introduced rules limiting families to the purchase of one new apartment in a further bid to squash rampant speculation in its property sector. Banks have also been directed to refuse home loans to applicants who cannot prove they have paid taxes and contributed to social security for …
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 …
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