Chinese Academy of Social Sciences (CASS) has found China’s Real Estate bubble has soared in urban areas despite repeated efforts of the central government to keep it under control. It has found the city of Fuzhou has the most expensive housing predicted to be 70.3 percent overvalued. Hangzhou and Nanning …
Enzo Raimondo, the CEO of the Real Estate Institute of Victoria has just reported on today’s Auction Clearance Rates for Melbourne. Of the 937 auctions reported today, 84 sold prior to the auction, 475 sold at auction and two sold after, making a clearance rate of 60 percent. There is …
More bad news out today from the ABS. Retail sales fell a seasonally-adjusted 1.1 percent in October, surprising economists who expected a 0.4 percent increase. Discretionary spending was hit the most as households funnelled more money into debt repayments to service skyrocking mortgages. » 8501.0 – Retail Trade, Australia, Oct …
Australia’s gross domestic product (GDP) has grown at its slowest pace since the GFC as stimulus measures start to wear off. Seasonally adjusted GDP grew at just 0.2 percent in the September quarter surprising the market which expected approximately 0.5% growth. Looking closer at the results, a strong result in …
It wasn’t all that long ago, that Real Estate experts were telling us that house prices can’t fall in Australia due to a “chronic” shortage of homes. They said the stark reality is we are not building enough homes to meet demand from our growing population, and this shortage will …
A report from the Renmin University of China suggests China’s property market is in for a 20 percent fall next year starting in March or April. The forecast comes based on measures the China central government is undertaking to cool the property market. This is likely to see capital for …
An article published in the Australian newspaper today of a senior Treasury official warning of the house bubble in Australia has almost gone viral. The comments stem from the preparation of the RedBook, a briefing for the incoming of the new government. Two months ago, in September, we published comments …
In the money advice section of the Adelaide Sunday Mail home lift-out today, is the following letter : I have four investment properties which have grown in value considerably over the last five years. I brought one prior to 1985 so there is no capital gains tax problem but the …
It has been a bad weekend around the country for Real Estate. News Limited reported auction clearance rates have “collapsed” in Australia’s largest housing markets. According to the paper the total volume of homes traded at auction over the weekend in Sydney, Melbourne, Brisbane and Adelaide was only $242.3 million, …
Figures from the ABS on Monday showed Melbourne was the star performer in Australia’s Real Estate markets. For the three months to September 2010, prices rocketed 2.7 percent in Melbourne, way in front of the next best result of just 0.4 percent (Perth) and with the majority of capital cities …
The Australian Bankers’ Association has reviled today that the extra hike in mortgage rates is due to international investors getting extremely nervous about Australia’s housing bubble. Steven Munchenberg from the ABA said “Over the last few weeks, we’ve had a lot of international investors asking very detailed and probing questions …
Wayne Swan would be fuming tonight. The Reserve Bank of Australia has put up the official cash rate another 25 basis points, only for the Commonwealth Bank of Australia to up rates 45 basis points. The 25 basis point rise to 4.75% will come as another blow to home owners …
According to official housing data released today by the Australian Bureau of Statistics, Australia’s Housing Market has slammed on the brakes with five of eight states going into reverse gear. The weighted average of eight capital cities barely kept its head above water, rising only 0.1% for the September 2010 …
The latest survey of global house prices conducted by the Economist magazine, show Australia has the most overvalued housing of the 20 countries it surveyed in the world. According to the Economist, Australia’s housing bubble is now overvalued by 63.2 percent, having ballooned another 18.4 percent in the past year. …
On Friday, PerthNow reported that due to a flood of properties, sellers are being forced to reduce their asking prices by 6 percent. “HOUSE prices in Perth are on a downward trend with sellers reducing asking prices by 6 per cent as the local market floods with properties for sale, …
Late last month we reported that global rating agency Finch Ratings would stress test Australian banks after an avalanche of inquiries questioning the sustainability of Australia’s housing bubble. Fitch today has reported banks could manage a 40 percent plunge in house prices and a home loan default rate of 8 …
The Adelaide Advertiser has today printed a two page spread on pages 10 and 11 tittled “Has the housing bubble burst?”. It reports “official” figures supplied exclusively to the paper showing house prices are starting to fall in Adelaide, down $10,000 or 2.4 percent to $400,000 in the September quarter. …
In an address to the CPA Australia conference, Luci Ellis, Head of Financial Stability for the Reserve Bank of Australia has warned poor investment yields are a sign there is an asset bubble. “If rental yields are very low, investors are buying properties without really thinking about the rental yield.” …
House prices are starting to fall in Australia, with the median national house price falling 0.2 percent in August according to the RP Data Riskmark Index. In Melbourne, house prices fell 1.5 percent reducing the median house price to $470,000. Brisbane house prices fell 2.3 percent to $434,000 for the …
Global rating agency Finch Ratings has announced it will start stress testing Australian Banks after a flood of inquiries questioning the sustainability of Australia’s housing bubble. Ben McCarthy, Finch Rating’s Australian Managing Director said “Over the last few months, Fitch has received numerous enquiries as to the sustainability of Australian …
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