Guest BurgessFamily

Boom times ahead: Property Prices set to jump by up to 6.4%

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    Guest BurgessFamily
    HOUSE prices are tipped to continue their upward growth nationally during the next two years.

    Queensland is predicted to show the biggest gains within the next one to two years, according to the latest NAB Residential Property survey.

    The report also found foreign buying activity had picked up for new properties, particularly in Queensland and for established housing in New South Wales.

    Foreign buyers now accounted for just over 1 in 7 new properties and around 1 in 10 established homes.

    The outlook for house prices in the next year (to March 2014) improved in all states.

    Queensland is expected to undergo the fastest growth in values of 3.5 per cent and New South Wales 3.3 per cent.

    Growth will be more subdued in Victoria, South Australia and the Northern Territory where it is predicted to increase to just 2.2 per cent.

    On a capital city basis values are predicted to rise by 6.4 per cent in Brisbane in the year to March 2015.

    Perth will also be a strong performer with values tipped to rise 5.6 per cent during the same period.

    http://business.nab.com.au/quarterly-australian-residential-property-survey-q1-2014-6136/

    https://www.businessspectator.com.au/news/2014/4/16/property/foreign-property-demand-lifts-nab

    Edited by BurgessFamily

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    Guest mactac

     

    Unemployment is unreal in this state. Holden is about to close with the loss of 27,000 jobs in an already bad climate.

    Take a look at what that did to Detroit. Anyone with ambition and young is leaving.

    There is a massive aged population and plenty of houses here (one thing Adelaide has plenty off).

    I think expecting a housing boom in Adelaide is foolish and Quoting NAB who sell mortgages is even more foolish.

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    Guest Guest12727

    Growth will be more subdued in Victoria, South Australia and the Northern Territory where it is predicted to increase to just 2.2 per cent.

     

    SA not up there in the 6.4 bracket. Interesting though that Victoria sits with SA.

     

    Personally I am pleased that housing prices in SA stay more stable. The boom and bust scenarios in the Eastern states can stay there.

     

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    Guest mactac

    The title of your post said Boom Times Ahead ?

    hmm

     

    Even the property propaganda pieces you linked to (just my personal opinion) do not mention Boom Times

     

    thems is your words.

     

    There is no boom, everyone knows the rest of the country has been in one. But Adelaide stayed out of it for the best part. We are not heading into a property boom,

    polar opposite in my opinion. Jobs crisis times ahead would have been better.

    Edited by mactac

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    Guest BurgessFamily

    Anything close to double (or above) annual inflation is pretty good going, wouldn't you agree?

     

    Luckily there is a lot of foreign investment (so maybe they don't need mortgages).

     

    Is your glass half full or half empty?

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    Guest mactac

    I can't do this anymore it's like banging my head against a brick wall.

     

    I really would like to be like you, really it must be nice.

     

    How is a town built around a car plant going to boom when the car plant closes down ?

    How is a town who has a head of state that is at odds with it's own leader (Fedral Government) going to boom ? (already submarine project shelved)

     

     

    I know, I know its so much more in SA mining, agriculture, tourism etc etc.

    In three years time look at that chart above again.....next time though in the mirror.

     

    Adelaide is a beautiful place with lovely people

    But don't try to convince me on its economy

    But everyone has their own opinion

     

    I'm out people :wacko:

    Things to see people to do

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    Guest mactac

    As for booms in Sydney and Melbourne there is one

    BTW i prefer the word bubble especially in this case.

     

    http://www.youtube.com/watch?v=f7iK4DHPr9E

     

    It is going to be one hell of a bang...

     

    Trying to tag Adelaide on to this is wrong

    but it will still suffer indirectly.

     

    Here is who I listen to not banks

     

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    Interesting though that Victoria sits with SA.

     

    I should think that's partly because it's already seen a bounce there (over 7% increase in median prices over the last year), so it's lost the slack that still exists in other states. Also, the supply in Melbourne property - office and residential - has increased massively in the last two or three years and with many other property projects in the pipeline, so while that keeps the property market moving it also keeps prices competitive.

     

    The Melbourne skyline looks that bit different every time I visit. It's worth taking a peek at the map on the sticky showing the complete list of Melbourne projects to get a sense of how much development is taking place there:

     

    http://www.skyscrapercity.com/forumdisplay.php?f=197

     

    Jim

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    Guest mactac
    I should think that's partly because it's already seen a bounce there (over 7% increase in median prices over the last year), so it's lost the slack that still exists in other states. Also, the supply in Melbourne property - office and residential - has increased massively in the last two or three years and with many other property projects in the pipeline, so while that keeps the property market moving it also keeps prices competitive.

     

    The Melbourne skyline looks that bit different every time I visit. It's worth taking a peek at the map on the sticky showing the complete list of Melbourne projects to get a sense of how much development is taking place there:

     

    http://www.skyscrapercity.com/forumdisplay.php?f=197

     

    Jim

     

    Relating Adelaide with Melbourne is

    like relating Detroit with New York

     

    Apples and Oranges

     

    People are pouring into Melbourne and are leaving states like Adelaide / Tasmania because of lack of work or simply

    better standing of living (e.g. Sydney unreal high cost of housing).

     

    http://www.smh.com.au/national/australians-leave-nsw-for-victoria-at-record-rate-migration-data-shows-20140327-35lrh.html

     

    Only inward migration from other countries keeps the population going here in SA.

     

    I just want to voice the difficulty, which is may be of benefit to those making the leap, never or rarely explained by migration agents and certainly never portrayed in those property shows in the UK showing the utopian life down under.

     

    I am only talking in general.

    There are certain well qualified people who arrive here with a job already lined up ... I am speaking for those who may struggle but may not yet know it.

     

    Property moves in cycles and in the long term mostly always up. But to compare Adelaide with Melbourne is not reasonable, they may as well be different countries.

    Edited by mactac

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    Relating Adelaide with Melbourne is

    like relating Detroit with New York

     

    Apples and Oranges

     

    I wasn't relating Adelaide with Melbourne. Get off your high horse for a second and show me where I did that.

     

    Howde questioned why Vic might not be seeing the same forecast as elsewhere and I was commenting on that. Not, for one minute, do I need to explain myself to you. If you want to carry on this 'chat' with me, pm me and I'll tell you what I really think of your contribution to this site in your first 16 posts.

     

    Jim

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    Guest mactac

    Sorry you are right. I consider myself corrected. I just get angry when I see headlines Boom Times Ahead!

     

    People who contribute to this site have an obligation to point out the difficulties here to those about to take their kids out of school, sell their homes and move half way across the world to this State.

     

    This is my last post, I will not be missed. :nah:

     

     

    But even if I made a couple of readers in the UK at least question the reality of Adelaide (for some people) then I did something good.

    As for the rest of the regular people here I may have ruffled a few feathers .... Apologies, but I can live with that.

     

    P.S. I love Adelaide and the people here, just warning of the poor economic situation at the moment.

    Edited by mactac

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    Luckily there is a lot of foreign investment

     

    Foreign investment makes me cross. The government needs to look at the amount of 'our' companes owned by foreign investors AND those buying into the property market (I believe wealthy Chinese investors figure prominently).

     

    It's most people's dream to own their own home, but kids today increasingly have less of a chance especially if house prices rise further...due, in no small part apparently, to foreign investors.

     

    Grr!

     

    LC

    Edited by Lazy Cow
    Typo

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    People who contribute to this site have an obligation to point out the difficulties here to those about to take their kids out of school, sell their homes and move half way across the world to this State.

     

    This is my last post, I will not be missed. :nah:

     

    .

     

    Don't make this your last post, just pull your neck in a bit!

     

    It is definitely important that posters offer varying views and opinions, but I think we have to remember that whatever we post is (usually!) simply an opinion based on our personal experiences. So, only the truth for us and not worth getting all argumentative and passionate about. :wink:

     

    Stay, mactac, tell us a bit about yourself and carry on posting!

     

    LC

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    [h=1]State Election and surge in affordable home sales keep Adelaide house prices stable for quarter[/h]

     

     

     

     

     


    • 1 day ago April 18, 2014 5:44PM

     

     

    352084-175ba17c-c6cd-11e3-b68a-f6104b7c1796.jpg

    Anthony Toop Source: Supplied

     

     

     

    THE State Election and a surge in affordable home sales has kept Adelaide home values stable for the past quarter, real estate experts say.

     

    The valuer general’s first quarter figures show Adelaide median home values have increased by about $400 or 0.1 per cent for the quarter to $410,399.

    This is $17,399 or 4.43 per cent more than at the same time last year.

    Statewide, South Australian home values remain unchanged for the quarter and still carry the same median house value of $375,000 as in January.

    Despite no quarterly change, their median value is still up 3.59 per cent on this time last year, when the median home value was $362,000.

    351387-2a8a4420-c6cc-11e3-b68a-f6104b7c1796.jpg

    Top 10 suburbs for the first quarter of 2014 Source: The Advertiser

     

     

     

    Toop&Toop managing director Anthony Toop said Adelaide’s steady median came as little surprise.

    “Adelaide is renowned for being a stable market and given we’ve just gone through an election in the last quarter that would have an effect on our sales because any election creates a dampening effect. And at the moment with the unemployment having gone up more than 1 per cent, any slight elevation in that median I consider as being a good thing,” Mr Toop said.

    “It’s probably attributable to where the volumes of transactions are happening, and all of the action is definitely in the lower end of the market. That means the median may not be reflecting the strength of the market because the volumes of transactions are disproportionately moved to the median price or below.”

    Real Estate Institute of South Australia president and Professionals Real Estate chief executive Ted Piteo also blamed the election for Adelaide’s flat market.

    “It’s been a stagnant marketplace. Unfortunately the kick-on that we had during the last quarter of last year, everyone was hoping it would push on to this year and unfortunately it didn’t eventuate,” Mr Piteo said.

    “Unfortunately the uncertainty leading into the election, during it, and the uncertainty after it has certainly caused it to be maintained.

    “The buyer activity prior to Christmas has waned and I’m putting it on the election. People don’t spend their money when there is uncertainty.”

    The state’s best-performing suburb was Greenwith, where house prices increased by more than 30 per cent in the past year – up to $498,750 from $420,000 last April.

    Mr Toop said Greenwith was a highly sought-after area and that low stock levels had helped drive up prices.

    “It’s affordable and is set in the middle of Golden Grove, which is an aspirational suburb for northern suburbs residents,” he said.

    “It’s a very solid family area, and it has great facilities around and a lot of good shopping, a lot of good schools. And this area wouldn’t have been impacted by the Holden news generally because it’s a strong area demographically,” Mr Toop said.

    “It’s more difficult to find a property because there are lower levels of stock and that’s helped move prices.”

    The top-performing council area was the city of Prospect, where homes increased by 15.27 per cent for the quarter and 18.94 per cent for the year.

    Homes in the Prospect council area have a median value of $620,000, $82,150 more than in January and $98,750 more than a year ago.

    Mr Piteo said the Prospect council area had always been a strong performer and was now considered an inner city suburb.

    “It’s always popular and has a lot of attributes like good infrastructure, it’s close to town and North Adelaide, has good schools and shops on Prospect Rd, and you’re only five minutes into town,” Mr Piteo said.

    “It’s always delivered on its promises.”

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    For every 'boom times ahead' article there is an opposite one warning that things are slowing down (or that the bubble will burst). Today's:

     

    http://www.news.com.au/finance/real-estate/property-prices-easing-in-capital-cities-australian-property-monitors/story-fndban6l-1226893712663

     

    "HOME hunters — hold off buying for now, there could soon be property bargains aplenty with cracks emerging in the nation’s housing market, new data shows." etc

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    Guest BurgessFamily

    Australia is different to other markets. You'll see. :P

     

     

    On a more personal note, I've been looking at property north of Brisbane (near friends). 4/5 bed houses, each on an acre or so of land = <$400k and 45mins from the CBD... hmmm...

    Edited by BurgessFamily

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    Guest BurgessFamily

     

    Yet Tony Abbott has almost single handed managed to get prices to drop for the frist time in ages, as announced yesterday. With him in power we will be giving houses away soon.

     

    That would be good for migrants you may think, but since he doesn't want immigration, we wont have immigrants.

     

    Thanks, Tony.

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    get in now before it's too late. :P

     

    Two of those articles linked to are from from a finance company that provides funding for property and a real estate website, so neither particularly objective. Of the other two, neither seem to share your view:

     

    From one of them:

    'Senior Economist with Australian Property Monitors, Dr Andrew Wilson says recent growth in some Australian capital cities can't continue. "We're starting to see some early signs of affordability barriers starting to emerge in the market," he said. "We've had very strong prices growth in Sydney over the past 12 months and this really is unsustainable."'

     

    From the other:

    'But the impetus continues to be under threat from dwindling consumer confidence, which has tumbled 15 per cent since the first leaks about the Federal Budget. Dun and Bradstreet's measure of consumer financial stress is on track to have almost doubled since the start of the year. A combination of slower wage rises, which are running below inflation, faltering consumer confidence and concern about overcall cost of living is behind the sharp rise.

    The company's economic adviser, Stephen Koukoulas, said the fall also coincided with a slowdown in house values.

    He said the positive impact of ultra-low interest rates was being overwhelmed by other negative pressures facing ordinary consumers.

    "It is looming as a genuine threat to the recent strength in spending, if consumers respond to financial difficulty by paring back expenditure," he said.'

     

    None of the four even mention SA or what's happening in this housing market ...

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    Guest BurgessFamily

    sorry, my sarcasm gets away from me. :P

     

    All the headlines there are very positive aren't they? Glass half full. :)

     

    Just today on Sunrise Kochie was talking it up.. property is on the up, or so they say. x number of housing starts this year, and talk of next year being bigger and better.

     

    You gotta love the property market coverage here, all so positive and uplifting. Too much negativity is a bad thing.

     

    On a more serious note, here in SA there has been a lot of new housing going up. Just look along the Expressway, you can see with your own eyes.

     

    I think the reality is it will keep going as it has, no boom, no bust. SA will always be at the back of the field, but 'generally' follow the rest of the nation.

    Edited by BurgessFamily

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    Guest BurgessFamily
    “The most expensive quarter of capital city dwellings have seen their values fall by 0.5 per cent while the most affordable end of the market has seen a 2.8 per cent rise in dwelling values over the same period.”

     

    ...put like that, it doesn't sounds like anything to worry about. :D

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    sorry, my sarcasm gets away from me. :P

     

    All the headlines there are very positive aren't they? Glass half full. :)

     

    Just today on Sunrise Kochie was talking it up.. property is on the up, or so they say. x number of housing starts this year, and talk of next year being bigger and better.

     

    You gotta love the property market coverage here, all so positive and uplifting. Too much negativity is a bad thing.

     

    On a more serious note, here in SA there has been a lot of new housing going up. Just look along the Expressway, you can see with your own eyes.

     

    I think the reality is it will keep going as it has, no boom, no bust. SA will always be at the back of the field, but 'generally' follow the rest of the nation.

     

    Oh, I didn't realise the idea was just to read the headlines and not the text contained in the articles. I stand corrected (said the man in the orthopaedic shoes.) :biggrin:

     

    Can't say I know who Kochie is or watch much of Sunrise, but if they found time between celebrity gossip to mention it, then it must be true!

     

    It's a pity all this new housing has come too late to save some of the building companies that have gone bust in SA recently, such as Marshall Thompson, Ian Wood, McCracken Homes, Hamra etc!

     

    I do agree with your last line about things keeping going as they are, but it's curious that someone who doesn't think there'll be a boom starts a thread entitled 'boom times ahead!'

     

    ;)

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