Positive signs in the Australian Real Estate Market
#31
BE Forum Addict
Joined: Dec 2008
Posts: 3,396
Re: Positive signs in the Australian Real Estate Market
House prices are up nationally between 5 and 7 per cent over the past year, while income growth over the same period is up about 5 per cent.
Read more: http://www.smh.com.au/money/analysts...#ixzz2iGDttZel
Read more: http://www.smh.com.au/money/analysts...#ixzz2iGDttZel
#32
BE Forum Addict
Joined: Dec 2008
Posts: 3,396
Re: Positive signs in the Australian Real Estate Market
#34
Re: Positive signs in the Australian Real Estate Market
that's the fundamental question. supply v demand.
no, we don't have enough stock of housing for the population growth we're experiencing as well as investor demand from overseas.
#36
Forum Regular
Joined: Jan 2013
Posts: 137
Re: Positive signs in the Australian Real Estate Market
I haven't seen that much of the world but the greed in the world of NZ real estate takes some beating; property owners, real estate agents take as much as they can possibly get. Its just another commodity.
#37
Re: Positive signs in the Australian Real Estate Market
In Australia and the UK, home ownership is sitting at 69%/70%, there's little difference between the two countries. In Australia the HO rate has fallen just 1% since 1990 and this is largely attributed to a greater stock of rental properties, particularly in the larger cities CBD's (think overseas investors).
An OECD study of home ownership in leading countries found that HO rates have increased in the UK mainly (3/4 of rise) because of a change in the structure of households i.e. an ageing population; other factors are at play in Australia. eg, OECD says:
"Overall, changes in household characteristics can account for around three-quarters of the increase in aggregate homeownership rates in Austria and the United Kingdom over the decade from the mid-1990s to mid-2000s, but only around one-third of the increase in Canada, Germany, Spain, Switzerland and the United States. In Australia and especially Italy, other factors appear to have played a particularly important role in shaping homeownership patterns."
In other words it isn't as simple as 'more affordable' in the UK, the population is ageing and older people have a higher rate of home ownership - they aren't first time buyers.
OK, you might think it's difficult to get your foot on the property ladder presently but 1st time buyers are just one sector of the market. Home owners are always moving (different location, sizing up, sizing down, moving job, nest emptying etc) and when the property market picks up then people have greater geographic and all types of mobility which must be a better thing for many.
An OECD study of home ownership in leading countries found that HO rates have increased in the UK mainly (3/4 of rise) because of a change in the structure of households i.e. an ageing population; other factors are at play in Australia. eg, OECD says:
"Overall, changes in household characteristics can account for around three-quarters of the increase in aggregate homeownership rates in Austria and the United Kingdom over the decade from the mid-1990s to mid-2000s, but only around one-third of the increase in Canada, Germany, Spain, Switzerland and the United States. In Australia and especially Italy, other factors appear to have played a particularly important role in shaping homeownership patterns."
In other words it isn't as simple as 'more affordable' in the UK, the population is ageing and older people have a higher rate of home ownership - they aren't first time buyers.
OK, you might think it's difficult to get your foot on the property ladder presently but 1st time buyers are just one sector of the market. Home owners are always moving (different location, sizing up, sizing down, moving job, nest emptying etc) and when the property market picks up then people have greater geographic and all types of mobility which must be a better thing for many.
#39
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Positive signs in the Australian Real Estate Market
I have been looking to buy a house in Cambridgeshire, about and hour from London, and the houses are far more affordable than where I live now which is about an hour from Brisbane......I also know Oxford well and that is similar in price to where I am now.
what am I missing?
Brisbane is hardly the equivalent of London
Last edited by Grayling; Oct 20th 2013 at 9:37 pm.
#40
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Positive signs in the Australian Real Estate Market
In Australia and the UK, home ownership is sitting at 69%/70%, there's little difference between the two countries. In Australia the HO rate has fallen just 1% since 1990 and this is largely attributed to a greater stock of rental properties, particularly in the larger cities CBD's (think overseas investors).
An OECD study of home ownership in leading countries found that HO rates have increased in the UK mainly (3/4 of rise) because of a change in the structure of households i.e. an ageing population; other factors are at play in Australia. eg, OECD says:
"Overall, changes in household characteristics can account for around three-quarters of the increase in aggregate homeownership rates in Austria and the United Kingdom over the decade from the mid-1990s to mid-2000s, but only around one-third of the increase in Canada, Germany, Spain, Switzerland and the United States. In Australia and especially Italy, other factors appear to have played a particularly important role in shaping homeownership patterns."
In other words it isn't as simple as 'more affordable' in the UK, the population is ageing and older people have a higher rate of home ownership - they aren't first time buyers.
OK, you might think it's difficult to get your foot on the property ladder presently but 1st time buyers are just one sector of the market. Home owners are always moving (different location, sizing up, sizing down, moving job, nest emptying etc) and when the property market picks up then people have greater geographic and all types of mobility which must be a better thing for many.
An OECD study of home ownership in leading countries found that HO rates have increased in the UK mainly (3/4 of rise) because of a change in the structure of households i.e. an ageing population; other factors are at play in Australia. eg, OECD says:
"Overall, changes in household characteristics can account for around three-quarters of the increase in aggregate homeownership rates in Austria and the United Kingdom over the decade from the mid-1990s to mid-2000s, but only around one-third of the increase in Canada, Germany, Spain, Switzerland and the United States. In Australia and especially Italy, other factors appear to have played a particularly important role in shaping homeownership patterns."
In other words it isn't as simple as 'more affordable' in the UK, the population is ageing and older people have a higher rate of home ownership - they aren't first time buyers.
OK, you might think it's difficult to get your foot on the property ladder presently but 1st time buyers are just one sector of the market. Home owners are always moving (different location, sizing up, sizing down, moving job, nest emptying etc) and when the property market picks up then people have greater geographic and all types of mobility which must be a better thing for many.
I am not a First time buyer....I have owned several properties and am a cash buyer....What is your point?
#41
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Positive signs in the Australian Real Estate Market
Where do you call the south?
I have been looking to buy a house in Cambridgeshire, about and hour from London, and the houses are far more affordable than where I live now which is about an hour from Brisbane......I also know Oxford well and that is similar in price to where I am now.
what am I missing?
Brisbane is hardly the equivalent of London
I have been looking to buy a house in Cambridgeshire, about and hour from London, and the houses are far more affordable than where I live now which is about an hour from Brisbane......I also know Oxford well and that is similar in price to where I am now.
what am I missing?
Brisbane is hardly the equivalent of London
When I judged a 2 bedroom terrace 10km from Sydney CBD and a 2 bed terrace same distance in south London they came out about even on fx rate a year ago. Things may have changed in the past year but considering my salary conversion was 2.3 when I first arrived Sydney would be the more affordable option for me.
#42
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Positive signs in the Australian Real Estate Market
Go on. Give the stats then.
When I judged a 2 bedroom terrace 10km from Sydney CBD and a 2 bed terrace same distance in south London they came out about even on fx rate a year ago. Things may have changed in the past year but considering my salary conversion was 2.3 when I first arrived Sydney would be the more affordable option for me.
When I judged a 2 bedroom terrace 10km from Sydney CBD and a 2 bed terrace same distance in south London they came out about even on fx rate a year ago. Things may have changed in the past year but considering my salary conversion was 2.3 when I first arrived Sydney would be the more affordable option for me.
#43
Re: Positive signs in the Australian Real Estate Market
The exchange rate blurs comparisons of property prices between Australia and the UK - over the last few years Australian property, vieiwed from the UK or with £'s in hand, has got 25% dearer at least just on the falling pound if you convert prices to the other currency. Brits buy with £'s and British salaries and wealth and interest rates; Aussies buy with $'s and Aussie salaries and wealth.
Brisbane isn't London yep but more to the point Cambridge isn't Brisbane. A lot of people buy in East Anglia (and as far north as York and beyond) to commute to London. Compare Cambridge prices to somewhere an hour from Brisbane and see what you get.
If we look at facts and not impressions:
Ipswich median house price is $366,500 (£215K at current rate);
Brisbane median house price $444,000 (£261K);
Source: Google Ipswich median house price/Brisbane house price
Cambridge median house price £357,639.
I rest my case - average Cambridge house price is nearly £100K above Brisbane (even at the high current value of the AUD).
Source: http://news.bbc.co.uk/1/shared/spl/h.../html/12ub.stm
Move out into the Fens and property becomes a lot cheaper of course (but the same goes for BrisVegas).
#44
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Positive signs in the Australian Real Estate Market
Not aimed at you at all. UK and Australian property markets are different. With respect to affordability, I'd expect much lower home ownership in Australia than UK if property is more affordable in the latter but that's not the case.
The exchange rate blurs comparisons of property prices between Australia and the UK - over the last few years Australian property, vieiwed from the UK or with £'s in hand, has got 25% dearer at least just on the falling pound if you convert prices to the other currency. Brits buy with £'s and British salaries and wealth and interest rates; Aussies buy with $'s and Aussie salaries and wealth.
Brisbane isn't London yep but more to the point Cambridge isn't Brisbane. A lot of people buy in East Anglia (and as far north as York and beyond) to commute to London. Compare Cambridge prices to somewhere an hour from Brisbane and see what you get.
If we look at facts and not impressions:
Ipswich median house price is $366,500 (£215K at current rate);
Brisbane median house price $444,000 (£261K);
Source: Google Ipswich median house price/Brisbane house price
Cambridge median house price £357,639.
I rest my case - average Cambridge house price is nearly £100K above Brisbane (even at the high current value of the AUD).
Source: http://news.bbc.co.uk/1/shared/spl/h.../html/12ub.stm
Move out into the Fens and property becomes a lot cheaper of course (but the same goes for BrisVegas).
The exchange rate blurs comparisons of property prices between Australia and the UK - over the last few years Australian property, vieiwed from the UK or with £'s in hand, has got 25% dearer at least just on the falling pound if you convert prices to the other currency. Brits buy with £'s and British salaries and wealth and interest rates; Aussies buy with $'s and Aussie salaries and wealth.
Brisbane isn't London yep but more to the point Cambridge isn't Brisbane. A lot of people buy in East Anglia (and as far north as York and beyond) to commute to London. Compare Cambridge prices to somewhere an hour from Brisbane and see what you get.
If we look at facts and not impressions:
Ipswich median house price is $366,500 (£215K at current rate);
Brisbane median house price $444,000 (£261K);
Source: Google Ipswich median house price/Brisbane house price
Cambridge median house price £357,639.
I rest my case - average Cambridge house price is nearly £100K above Brisbane (even at the high current value of the AUD).
Source: http://news.bbc.co.uk/1/shared/spl/h.../html/12ub.stm
Move out into the Fens and property becomes a lot cheaper of course (but the same goes for BrisVegas).
Your figure of $444000 for Brisbane would include an awful lot of areas where you would not really want to live. Try finding anything in a reasonable suburb within easy reach of the centre of Brisbane for that amount:lol
I live in a 'reasonably' priced suburb of Brisbane (at least 45 mins from the centre at off peak times) and that figure would get you very little here either.
My experience is that the UK is far cheaper than Australia anywhere near the major cities....and that is based on living and buying property in both.
Last edited by Grayling; Oct 21st 2013 at 10:40 am.
#45
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Positive signs in the Australian Real Estate Market
Why are you referring to the 'average' house price in Cambridge being 100K GBP higher than Brisbane when prior to that you had been using the 'median'.......not trying to muddy the water are you?