r.bartlett

a lot of the price rise has been due to the influx of outsiders driving the market at 3-1 we could 'afford' a much higher price.

now the strong dollar wiping off up to 50% of immigrants spending power and with the 'locals' being driven out of the market

I wonder if the au housing market is just about to go 'bust' too??

cheers

richard

etlniwd

It's very true what you say. Sydney is about to go belly-up for sure. The rest of the country might get away with just a slow-down for 5 years or so.

paulf

That is exactly what I think.
How on earth can a local afford these price hikes?

pommie bastard

Borrowing drives any market and they still think interest rates are low here ( 1.5 percent above the UK) , so the more people think they can afford the more the market goes up.
You watch the prices fall here and the UK if interest rates go up by 3% or more.

megawho

Probably a good guess. Certainly whenever I look at house prices in sydney, I find it astonishing, particulalry as wages (at least in the jobs i'm looking at) seem so out of whack...

dotty

Can't speak for all of Oz, however here the housing market is very manipulated by the Land Developers. 2 years ago you could probably choose from a thousand + plots on the Sunshine Coast. Now the Developers Drip feed the land, 20 - 60 plots come out a time and of course the buyers go into a frenzy. cannot count the times I hear, the old there's no land to buy. All very clever, since this started land has gone up 75%. Hundreds of names go down for a few plots. Great busiess tactic if you ask me.

Sydney has been rising in price for several years now, so could well slow down, however QLD and Perth only really moved in the last 18 months so I dont think it will slow yet.

Another factor is Australians, became fond of shares right at the end of the boom, you know oh that fund went up 60% last year lets jump in not realsing thats not when you buy. Now they are share scared and Property is the way to go, Aussies love their home ownership it is considered 'SAFE'.

Another big factor is the elderly here love to tie their money up in property, so they can still get the pension, they are the ones driving the upper end of the market, all the waterfront stuff etc.

Aussies feel safe in houses and it takes a lot to shake their investment pattern.