Sunday, 5 April 2015

Land Down Under

More building, less singing.
Quickly: Foreigners are not pricing Australian locals out of housing, nor is there a national property bubble.

Price rises Dec 2013 - 2014 were only pronounced in Sydney, Melbourne (4.5%), and Brisbane (5.3%).

Even then, only Sydney (12.2%) was above the weighted average (6.8%).

Even within Sydney, there were huge variations by area.

(3-Year Vendor Asking Price Change to January 2015 Source: SQM Research)
PostcodeAreaKm to CBDHouseApt
2000Sydney041.0%27.0%
2025Woolhara48.8%20.2%
2050Camperdown3.3130.8%-8.0%
2075St Ives1610.7%13.9%
2100Allambie Heights12.274.6%9.3%
2125Bella Vista26.4921.9%30.2%
2150Parramatta1942.6%28.7%
2175Horsley Park33.334.3%
2200Condell Park18.7829.8%31.4%

Long term (10 years) year on year gains stand at 5.1%p.a., with major cities lagging.
(ABS Residential Property Price Index %ge change from corresponding quarter of previous year, 10 year average to Dec 2014)
City% Change
Sydney4.0
Melbourne6.3
Brisbane4.8
Adelaide5.1
Perth8.7
Hobart4.5
Darwin9.8
Canberra3.9
Weighted Avg5.1

Housing un-affordability has more to do with stagnant wages and rigid supply- (230m height restriction in Sydney CBD!) - than foreign and local demand.

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