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Fresh bidding frenzy in Sydney: Buyers are saying "We'd better get in or we'll never get in"; Fewer than 20,000 dwellings for sale across Sydney, less than half the number listed five years ago
Topic Started: 7 Oct 2016, 10:21 AM (2,182 Views)
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Shortage of homes defies effort to rein in prices

Angus Whitley, October 7 2016

Australian policymakers say efforts to rein in the runaway housing market are working. But on the ground there's a fresh bidding frenzy, as fibreboard shacks fit for demolition and miles from downtown Sydney go for almost $1 million.

A lack of houses in and around the city, the epicentre of Australia's property boom, is pushing up prices again even after banks last year tightened mortgage lending. Some buyers are snapping up homes they've never seen, worried it might be their last chance to own a patch of land, said Peter Baldwin, the chief auctioneer at real estate agency Richardson & Wrench for 27 years.

"It's all guns blazing again," said Baldwin, who's never seen fewer properties for sale in spring, a season when home hunters are usually spoiled for choice. The shortage "will just keep this market humming along''.

House prices in Sydney are up 14 per cent this year through September, compared with 9 per cent across the nation's major cities, according to CoreLogic, defying an assessment by real-estate listing firm Domain last year that the boom was over. Dwelling values in Sydney have now almost doubled since the end of 2008.

Fewer than 20,000 dwellings are for sale across Sydney, less than half the number listed five years ago, CoreLogic says. The costs associated with selling a property and buying another, such as agent commissions and government taxes, climb with the value of the home. That's discouraging ever more homeowners from moving, CoreLogic said.

At a sale last week, auctioneer Baldwin took 134 bids for a drab, two-bedder in Greenacre, 18 kilometres west of Sydney, before dropping the hammer at $926,000. That's 19 per cent more than the median price for that size of property. Baldwin said the main draw wasn't even the house; it was the chance to knock it down and build anew. Some buyers are saying: 'We'd better get in or we'll never get in,' he said.

Sydney's population will jump 50 per cent from 2011 levels to 6.42 million in 2036, the NSW government said last month, lifting forecasts made only two years ago. It will need another 726,000 homes between 2016 and 2036, it said.

The nation's largest city needs a "dramatic increase in affordable land supply" after residential land releases fell in 2015, according to this year's State of the Land Report by the Urban Development Institute of Australia. The report described Sydney's housing shortfall as "chronic" and said there's little prospect of fulfilling the city's accommodation needs.

There's competition at every price point. There aren't enough $5 million houses or $20 million-plus mansions either, said Ken Jacobs, whose luxury property agency is an affiliate of Christie's International Real Estate.

"There's more inquiry than actual properties available," said Jacobs, who's selling Oscar-winning actress Cate Blanchett's trophy home in the Sydney suburb of Hunters Hill.

Read more: http://www.smh.com.au/business/property/shortage-of-homes-defies-effort-to-rein-in-prices-20161006-grwv1h.html
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GloomBoomDoom
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Nothing but a huge liar loan cheap money bubble built on top of a speculative frenzy and tax avoidance scheme.
Appears master cat Shadoh isn't the only one who lies to their bank.

http://www.news.com.au/finance/real-estate/buying/nearly-one-third-of-australians-lied-on-home-loan-applications-ubs-report-finds/news-story/94cd188c8e25a8741eeb9ab85b22ae25
MSE
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Bardon
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The anxiety level of Sydney buyers is palpable even up here in Brisbane, I feel for them.

These fired up and frenzied buyers will just have to continue to bid up the prices against each other for the limited supply, meaning that the successful bid prices will just also continue to rise higher and higher with the banks ticking off the newer and higher valuations for lending purposes.
Edited by Bardon, 7 Oct 2016, 11:40 AM.
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vdmruss
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Unaffordable housing, slow erosion of proper full time jobs, excessive immigration ... our politicians will still be scratching their heads when Pauline Hanson heads to the White House to meet Donald Trump to discuss the policy on China. :lol

A comical far fetched scenario straight out of Idiocracy, but looking more plausible every day.






Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours.
Those who can, do. Those who can't, teach.
"It's an itchy blanket, it's designed to remind you how lucky you are"
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Khaderbhai
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Wealthy Suburbanite

GloomBoomDoom
7 Oct 2016, 11:17 AM
Nothing but a huge liar loan cheap money bubble built on top of a speculative frenzy and tax avoidance scheme
Keep telling yourself that, if it helps to ease the pain.

The reality is Sydney is simply enjoying a new growth phase, after going nowhere in real terms for a decade. It's all part of the cycle.
Edited by Khaderbhai, 7 Oct 2016, 03:47 PM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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Rufus
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GloomBoomDoom
7 Oct 2016, 11:17 AM
Nothing but a huge liar loan cheap money bubble built on top of a speculative frenzy and tax avoidance scheme.
Appears master cat Shadoh isn't the only one who lies to their bank.

http://www.news.com.au/finance/real-estate/buying/nearly-one-third-of-australians-lied-on-home-loan-applications-ubs-report-finds/news-story/94cd188c8e25a8741eeb9ab85b22ae25
They lied about the loan purpose to get a better rate. The way this reads on some news sites is that the data banks used to evaluate loans is false, which is incorrect. Banks don't use unsubstantiated data to evaluate loan applications.

Take risks - if you win you will become wealthy, if you lose you will become wise
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Blondie girl
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GloomBoomDoom
7 Oct 2016, 11:17 AM
Nothing but a huge liar loan cheap money bubble built on top of a speculative frenzy and tax avoidance scheme.
Appears master cat Shadoh isn't the only one who lies to their bank.

http://www.news.com.au/finance/real-estate/buying/nearly-one-third-of-australians-lied-on-home-loan-applications-ubs-report-finds/news-story/94cd188c8e25a8741eeb9ab85b22ae25
If people borrow responsibly and allow for IR increases then yes it is sustainable. Its where people over borrow and gamble $ that they really cant afford to lose that creates the issue.

Good props tend don't do a freefall because people will still pay decent prices for quality in terms of location and build standards.

Buying a prop is like any other investment, if the selling price is over valued then don't buy. If you think there is potential for growth then it is worth the calculated punt, but always accept that you might lose. if people continue to fuel the bubble by increasing demand for over valued property then these are the very people who should not complain when it goes wrong.
The other option is to realign to what can be reasonably afforded eg buy a smaller prop in a promising location.

Bardon
7 Oct 2016, 11:27 AM
The anxiety level of Sydney buyers is palpable even up here in Brisbane, I feel for them.

These fired up and frenzied buyers will just have to continue to bid up the prices against each other for the limited supply, meaning that the successful bid prices will just also continue to rise higher and higher with the banks ticking off the newer and higher valuations for lending purposes.
I don't have sympathy its called scaremongering.
Edited by Blondie girl, 7 Oct 2016, 05:51 PM.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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Foxy
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Zero is coming...

Nothing corrects the issue of high prices like high prices...

So push those prices higher :D :D

Remember no pain, no gain...


But, it would be a great shame if they bite off more than they can chew.


Peter :bl:

https://www.youtube.com/watch?v=D5S589lSYZQ
https://www.youtube.com/watch?v=1Z9y8WbWr64

https://www.youtube.com/watch?v=UJVv1SKRlpA

The suburbanites are the new gun fodder of the new war,

Peter
The Sydney boom if and when it pops will teach them a lesson.

https://www.youtube.com/watch?v=bKJjDpM6HgQ
Edited by Foxy, 7 Oct 2016, 06:47 PM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Bardon
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Blondie girl
7 Oct 2016, 05:45 PM
I don't have sympathy its called scaremongering.
It must be quite depressing for those that held of buying in say the last ten years only to now realise that their buying indecision may have cost them their part oof the Australian dream for the rest of their life.
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Khaderbhai
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Bardon
8 Oct 2016, 08:47 AM
It must be quite depressing for those that held of buying in say the last ten years only to now realise that their buying indecision may have cost them their part oof the Australian dream for the rest of their life.
Indeed. And it's even worse for the poor sods like Steve Keen and Crazy Ted who sold perfectly good Sydney homes right before this boom took off.

The sad thing is that they were in the market, but they panicked and bailed out at the worst possible time, and now they can never get back in again.

I'd say there's another couple of years to run for this Sydney upcycle... possibly another 40% growth to come...

http://www.domain.com.au/news/a-month-into-spring-and-theres-a-vicious-cycle-no-homes-to-buy-so-noone-is-selling-20161006-grvir2/

A month into spring and there’s a vicious cycle – no homes to buy, so no-one is selling

It’s a month into spring and Newtown agent Duncan Gordon is frustrated. “Stock levels are down about 30 per cent in our neck of the woods and they’re down across Sydney,” he says.

Everyone expected the floodgates to open in spring, but it’s not happening.

A lack of stock meant those who did put their property up for auction in September were guaranteed of a sale in many suburbs

“People are quite desperate,” Gordon’s colleague Michael Harris said, pointing to the popularity of a three-bedroom terrace at 28 Margaret Street, Newtown. “It’s completely unrenovated … but we have people saying, ‘If we have to live in a house like this, then that’s what we’ll do’.”

“All indications are that prices and clearance rates will stay at a high level, but one thing that isn’t rising is the number of properties being offered, which will continue to be lower than a year ago,”

“It’s not overstating it to say that we’ve had a collapse in auction listings compared with last year.”
Edited by Khaderbhai, 8 Oct 2016, 10:21 AM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
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