Sydney now $1.04M in August... could it get to $1.1M by the end blah blah
It hasn't even made one million yet shadow so hold your horses and your bullshit stats. Sydney investors chasing capital growth in for a rude shock, say experts Oct 2nd 2015
The property market in Sydney’s west has slumped dramatically, signalling looming problems for investors who were hoping to capitalise on price growth. Instead, prices in the west have slipped by 7.3 per cent over the month of September and the auction clearance rate has hit a dismal 56.4 per cent – a massive drop from Sydney’s record rate of nearly 90 per cent in May. .“There’s no doubt that prices and auction clearance rates have weakened considerably in the west,” said Domain Group senior economist Dr Andrew Wilson. “It has now become the underperformer of the Sydney market and, to some degree, it’s dragging the whole of the market down. http://www.domain.com.au/news/sydney-investors-chasing-capital-growth-in-for-a-rude-shock-say-experts-20151002-gjyz2g/
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
It has exceeded $1M, according to Residex, APM, and SQM Research.
ABS and RP Data are still below $1M.
Yep, its looking a lot like Dublin 2007.
Are you happy about that?
Meanwhile,
Quote:
In 2014-15, direct construction industry output contributed 7.8% to Australia’s Gross Domestic Product (GDP) up from around 6.5% a decade ago (see chart 1). This makes the construction industry Australia’s third largest contributor to GDP in terms of the volume of its output. Only the financial and insurance services (8.7%) and mining (8.8%) sectors contribute larger shares of direct output to GDP.
So that means the two biggest contributors to national wealth relate, in the main, to house building seeing as out banks are glorified mortgage lenders.
But its gets better.
Quote:
In addition to this direct contribution to GDP, construction activity supports a large upstream and downstream supply chain. For example, the production of building materials (e.g. tiles, wood, steel, cement, bricks and glass), building components (doors, windows, wiring, electronics, plumbing supplies) and accessories.(bathroom and kitchenware, carpets and curtains) are supplied from manufacturing, while the sale andmanagement of property is the preserve of real estate services and the financing of property mortgages is part of the financial services sector. Similarly, engineering and architectural design services are classified as ‘professional services’ in the 'ANZSIC' system of classification, while the transport and wholesaling of all building materials are included in the 'transport' and 'wholesale trade' sectors respectively. These upstream and downstream industries are large and significant in their own right. Collectively, they extend the reach of construction-related activity to around 20% of the economy, in output ('value added') terms.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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