Rents are falling in every state except Melbourne, according to CoreLogic RP Data rental data for the month to June 30. As more investors pile into the market, rents have risen just 1.1 percent this year, the worst result since records started in December 1995. In real terms, rents have …
Australia’s record low interest rate environment has been a challenge for financial regulators trying to cool asset bubbles such as residential housing. Fear of buyers taking on too much cheap debt when interest rates are at record lows is thought to be keeping some regulator’s awake at night, as household …
As widely expected, Australia’s central bank decided today to leave the official cash rate unchanged at 2.0 per cent. In the statement following the policy decision, the Reserve Bank, as it has done over the past couple of months, reiterated “The Bank is working with other regulators to assess and …
According to Google Trends, searches for “housing bubble australia”, “australian housing”, “australian housing bubble”, “sydney housing bubble” and “housing market bubble” surged last month to levels never seen before. Highlights of June 2015 included: Treasurer Joe Hockey denying there was a housing bubble and telling first home buyers they should …
The collapse of commodity prices has sent rental vacancies in Perth to levels “almost approaching record numbers” according to the president of the Real Estate Institute of Western Australia (REISWA). REIWA president told the ABC, “It will not be surprising to see the vacancy rate hit 5 per cent shortly, …
The International Monetary Fund has warned Australia’s big banks don’t appear to be well capitalised and increasing capital should be a priority. The warning comes in the concluding statement following the article IV mission to Australia this month. (‘International Monetary Fund team to examine housing bubble – May 2, 2015‘) …
‘Crazy’ value agnostic investors continue to leverage up in an environment of poor rental growth, according to investor mortgage finance commitments released by the Australian Bureau of Statistics on Friday. In the year to April, NSW property investors have borrowed $64.2 billion to spurge on the residential property market, another …
An open letter from Mel Wilson, Human Resources professional and mother of two from Wodonga, Victoria to Treasurer Joe Hockey. Please share Mel Wilson’s facebook post here. Dear Joe, I just wanted to touch base with you regarding your comment that young people are able to enter the property market …
A day after out of touch Treasurer, Joe Hockey told first home buyers they needed a “good job” that pays “good money” to break into the Sydney property bubble, Reserve Bank Governor Glenn Stevens has weighed into the debate, saying the Sydney property market is crazy, “Yes I am very …
According to Channel 10 Adelaide, The Reserve Bank of Australia has “denied” the Adelaide property market a much needed boost by leaving rates unchanged. You could be mistaken for thinking it was 1989 and the official cash rate was 17 per cent. But, no, the report aired yesterday after the …
Treasury secretary John Fraser told a senate hearing today he has no doubt there is a property bubble in Sydney. “When you look at the housing price bubble evidence, it’s unequivocally the case in Sydney. Unequivocally,” he told the hearing. He warns bubbles have also formed in many parts of …
Sydney and Melbourne residential property markets could already be in a bubble according to the chief of Australia’s Investment and Securities regulator. Talking to the Australian Financial Review this week, ASIC Chairman Greg Medcraft said “History shows that people don’t know when they are in a bubble until it’s over” …
With a smirk on his face, Treasurer Joe Hockey told naive Australians today, the Reserve Bank’s cut to the official cash rate is “good news”. With a continuing deteriorating economy, the Reserve Bank was once again forced to cut the official cash rate, this time to a record low of …
According to a report in the Australian Financial Review today, the Australian Securities and Investment Commission is readying for a major crackdown on property spruiking to Self Managed Super Funds (SMSFs). It follows a recent Federal Court ruling that confirmed the commissions’ view that property spruikers who promote or recommend …
Foreign investors who purchase existing residential dwellings illegally, and third parties who knowingly assist, will face increased penalties under a new bill to be introduced into Parliament this Spring. Coinciding a day after the Foreign Investment Review Board’s (FIRB) annual report showed a 95 per cent increase in applications by …
The International Monetary Fund (IMF) will send an economic team to Australia next month to check up on Australia’s housing bubble and the increasing risk it poses to the economy, according to a report in the Australian Financial Review today. James Daniel who will lead the team next month told …
Applications by foreigners to purchase Australian real estate has surged in 2013/14. Data contained in the Foreign Investment Review Board’s annual report, released yesterday, show there were 23,430 applications to buy Australian real estate last financial year. This is up 95 per cent from the 12,025 applications received the year …
Concerns are mounting that Australia’s big banks are disregarding risk and may not be capitalised enough to withstand a conceivable property correction. Today, the Australian Financial Review reported Sydney home prices are growing five-times faster than wages. Such rapid increases in property prices over one’s ability to service the mortgage …
Reserve Bank Governor Glenn Stevens told a New York audience there is too much focus on the ‘exuberant’ Sydney property bubble. Addressing The American Australian Association luncheon, Stevens said: “Then there are dwelling prices, which, at a national level, have already risen considerably from their previous lows, at a time …
The last instalment of the ABC’s property bubble special aired tonight, focused on the “biggest headache in decades” for regulators trying to breath life into the economy, while the housing bubble accelerates on cheap credit. You can watch tonight’s segment here – Getting hammered by overheated housing In recent months, …
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