Generally what happens is at the start of the construction boom house prices start rising strongly because of all the extra construction income flowing into the economy. And the fact that prices are rising encourages more developers to construct, creating a positive feedback loop.
After a while (several years) what can happen is prices rise too far, but the momentum of the construction boom keeps it running for longer than necessary, leading to oversupply. That's when prices start to fall
Prophetic !
schooner
6 Oct 2011, 09:59 PM
What on earth will drive this boom Shadow.Being a mechanic I have seen the workshop slow big time. Its just not going to happen.This will be another fail for you my friend.
Bwahahahahaha!
Catweasel
8 Aug 2011, 07:10 PM
Idea that a construction activity can impact a economy to do a big impact on a house price is the kind of mad as batshit if it ask a Catweasel
dum dum the forum clown strikes again
Rastus2
2 Feb 2012, 12:20 AM
Sorry, since you pick keen's predictions up on any error margin at all, yours will be a FAIL unless they hit 1M by 2015
that a win for shado wthen
earthsta
11 Oct 2012, 11:24 PM
Whatever you say spuddy.
I'm predicting you will be long gone from here by Jan 22, 2015
shadows still here isn't he, and what about you ROFL ?
Cracks are appearing in Australia's housing construction boom, with fears it will peak in the next 12 months.
While many have touted the property sector as the nation's next big hope for the economy as mining investment fades, Nomura strategist Andrew Ticehurst says it may soon run out of steam.
"Maybe we've fired that bullet, he said
What will fund the property boom? The property boom will fund the property boom That and international students
"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
What will fund the property boom? The property boom will fund the property boom That and international students
Huh? The Sydney property boom has already happened and is happening! So it's ALREADY been funded! I can't believe the amount of construction going on around Sydney at the moment - it's like the late 80s again..... You are in total denial.....
PS - of course, we will probably get an over-supply and period of falling / stagnating prices for some time once the price boom finally peaks. But we are not quite there yet....
For Aussie property bears, "denial", is not just a long river in North Africa.....
Huh? The Sydney property boom has already happened and blah blah blah
Quote:
Cracks are appearing in Australia's housing construction boom, with fears it will peak in the next 12 months.
huh? huh? Are you dense? Can't you tell the difference between a nation and a single city?
"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
The only dense person is someone who can't even read the post they are quoting. Go back and read it dopy, and alex's link that I was referring to. The thread title has nothing to do with a post made 40 pages and 4 years later.
That's the whole trouble with you turds, you can never admit when you are WRONG. That's the trademark of any wise investor but you can't seem to do it on a simple post, what hope do you have in a property market where your life savings is wagered? All you can do is parrot on about Sydney, Sydney, Sydney, like some pea brained kid in a school yard.
"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
Value of Development Applications lodged with the City of Sydney
If the Sydney skyline looks full of cranes right now, hang on to your hard hats, because there's $7.4 billion worth of new projects in the pipeline.
These are measured by the total development applications lodged with the City of Sydney council, incorporating the central business district and extending to Green Square in south Sydney, and cover the year to September 30.
The total is an increase of more than 64 per cent over the previous year's record total of $4.5 billion for applications seeking either construction or concept approval.
In the Rider Levett Bucknall​ fourth quarter 2015 RLB Crane Index, there are 220 cranes currently erected across Sydney, which is a 36 per cent increase in number since March 2015.
Of the 220 tower cranes identified, 170 were on high-rise residential projects, 18 were on commercial projects, 15 were on civic projects, six were on health projects, four were on education projects, three were on retail projects, two were on hotel projects and two were on 'other'.
This number will dramatically increase, with latest data from the City of Sydney, showing that in the last 12 months to September 30, developers lodged detailed applications to construct hotel, residential, retail and commercial projects with a total value of $5.3 billion, with an additional $2.15 billion in applications seeking concept, or "stage one", approval.
Some of these projects will include The Ribbon, the proposed $800 million retail and mixed use project at Darling Harbour being developed by Grocon.
Ms Moore said Sydney's growing popularity with tourists and business travellers has seen owners and operators lodge applications to build 20 new hotels, adding more than 2300 rooms, and there are preliminary discussions under way for a further five hotel projects of varying sizes.
In the past year, applications and concepts have been lodged for 32 projects each worth more than $50 million, with 21 projects valued at more than $100 million each.
Stephen Ballesty, Rider Levett Bucknall's director of research & development, said the strength of the residential sector within Sydney was highlighted by the increase in the number of cranes on residential projects.
''In excess of 77 per cent of all 220 cranes sighted are on residential projects within Sydney, up from 76 per cent at our last count in March 2015," he said.
The only dense person is someone who can't even read the post they are quoting. Go back and read it dopy, and alex's link that I was referring to. The thread title has nothing to do with a post made 40 pages and 4 years later.
That's the whole trouble with you turds, you can never admit when you are WRONG. That's the trademark of any wise investor but you can't seem to do it on a simple post, what hope do you have in a property market where your life savings is wagered? All you can do is parrot on about Sydney, Sydney, Sydney, like some pea brained kid in a school yard.
With all their eggs in one basket, they were never to be considered wise investors lol.
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy