Coming soon to a suburb near you. ..........just like what's happening in Perth currently.
Should we plot a graph now folks?
Canberra rents continue to fall for houses and units
July 9, 2014 - 10:58PM Meredith Clisby
Canberra’s rental prices have continued to slump as the territory records close to the largest fall in median rents in the country over the past year.
New data to be issued by Australian Property Monitors on Thursday shows the median weekly asking rents for houses have dropped 6.3 per cent to $450 and units have fallen 6.1 per cent to $385.
This is the worst performance in the country for units and the second worst for houses, behind Perth with a fall of 6.6 per cent.
The June quarter figures show the territory is the fourth most expensive capital city to rent a house and the sixth most expensive to rent a unit.
The rental report shows that while houses still retain their expensive status, when compared to other capital cities, units are now more affordable.
In the April quarter Canberra units were the third most expensive in the country but are now among the cheapest at a median weekly asking rent of $385.
Australian Property Monitors Domain Group senior economist Andrew Wilson said Canberra’s rentals continued their recent downward trajectory due to subdued housing conditions.
“There’s a consistently about the fall over the year for both houses and units and I do think it’s just generally a lack of demand for rental properties in Canberra,” he said.
“I think that does reflect what is an underperforming local economy concerned about job security.”
The problem in Canberra is with luxury units and older, inner city houses. If you have either of those, as a landlord you'd be suffering a bit right now.
The problem in Canberra is with luxury units and older, inner city houses. If you have either of those, as a landlord you'd be suffering a bit right now.
The problem in Canberra is that the only industry is putting a gun to people's heads and demanding money, which tends to suffer from a law of diminishing returns. The extortion business will always wax and wane, and right now it is on the decline.
The problem in Canberra is with luxury units and older, inner city houses. If you have either of those, as a landlord you'd be suffering a bit right now.
Yes, but as we all know, these falls have a nasty habit of spreading to the rest. But it's no surprise canberra leads the pack down. It's not like they do anything productive there.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
To say that Canberra has missed the current house price boom is an understatement, with both houses and units recording less than 1.5% value growth over the past year when averaged out over the four main data providers (i.e. ABS, APM, RP Data and Residex), which is well below the annual growth in inflation (3.0%).
The short-term outlook is not particularly bright either, with the growth in housing finance commitments turning down recently, which usually means lower house price growth.
Part of the reason for the slow pace of price growth is that Canberra has been party to an apartment construction boom since late-2010.
This has led to concerns about an oversupply, which has finally raised Canberra’s rental vacancy rate to around the national average.
And placed much needed downward pressure on Canberra’s exorbitant rents/
Finally, while Canberra has the lowest unemployment rate in the nation, wages growth has weakened significantly, falling to the lowest level on record in June (2.25%) and running well below the national average (2.6%).
All of which points to some stiff headwinds for Canberra’s housing market, particularly in light of the Government’s ongoing search for Budget savings, which will no doubt target the public service.
Get what? That the properties we've held for years don't increase in value linearly? No shit, we know. That after a big increase over the last decade that our property values will stagnate for a while? No shit, we know. That rents vary according to supply and ability to pay? No shit, we know.
Do you really think that people who have owned investment property for years don't know all these things, and haven't planned for it? In another year or so I'll be out shopping in Canberra, picking up bargains, and the bears will still be waiting for their big chance. Once you've got a few million in equity and have held through more than one cycle it takes some very stupid actions indeed to really mess things up.
Get what? That the properties we've held for years don't increase in value linearly? No shit, we know. That after a big increase over the last decade that our property values will stagnate for a while? No shit, we know. That rents vary according to supply and ability to pay? No shit, we know.
Do you really think that people who have owned investment property for years don't know all these things, and haven't planned for it? In another year or so I'll be out shopping in Canberra, picking up bargains, and the bears will still be waiting for their big chance. Once you've got a few million in equity and have held through more than one cycle it takes some very stupid actions indeed to really mess things up.
I think you're missing the point.
There are macro factors at play in the housing market that have distorted prices across the board and causing a chronic misallocation of capital.
The performance of individual investors such as yourself aren't important in this regard.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Get what? That the properties we've held for years don't increase in value linearly? No shit, we know. That after a big increase over the last decade that our property values will stagnate for a while? No shit, we know. That rents vary according to supply and ability to pay? No shit, we know.
Do you really think that people who have owned investment property for years don't know all these things, and haven't planned for it? In another year or so I'll be out shopping in Canberra, picking up bargains, and the bears will still be waiting for their big chance. Once you've got a few million in equity and have held through more than one cycle it takes some very stupid actions indeed to really mess things up.
You don't seem to get a lot stinky......
You don't seem to get it that western economies have finally run their course.
You dont seem to understand that pushing debt to unsustainable levels through any means possible over many decades is simply taking money away from the overalll economy for much longer periods of time. . You don't seem to understand that the gfc has surfaced because debt has become unsustainable.
You dont seem to understand the great depression surfaced for the very same reasons.
You don't seem to understand the debt levels of today make the great depression look like a walk in the park.
You don't seem to understand that the US economy is not really improving even though interest rates will have been at zero for almost six years now, owing another 10 trillion on top of the 8 trillion they owed in 2008 for which they already could not pay.
You dont seem to understand, that we did not have to deal with dirt cheap asain labour prior to this decade, not on any scale we do now.
And you do not understand that is why all jobs are dissapearing overseas or altogether, and that with our wages being so high, our jobs will just keep dissapearing. Understand this comment more than anything, if you want to argue, argue this with me and don't run away or divert
Look at rents there I posted earlier in that bull thread link. Smashed, like never before, but all normal , according to you. The new normal
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