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Fourth month of price declines in softening property market

OLIVIA CAISLEY Reporter Sydney @livcaisley The housing market has slumped again with preliminary figures suggesting a soft start to March. While the previous auction ­results in late February had been hailed a “super Saturday”, AMP Capital Chief economist Shane Oliver said that spike in auction clearance rates was just a “temporary boost”. At the weekend […]

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Slow start to housing market for 2018

Sydney’s continuing home price slide kept capital city values largely flat last week, while auction activity has increased. The number of home auctions rose to 779 in the week to February 4 – almost triple the number of a week earlier – but that was down on the 881 in the same period a year […]

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Australia:Housing ‘severely unaffordable’ as Sydney price to income ratio worsens.

Housing in Australia has been categorised as “severely unaffordable” compared with metropolitan markets around the world, a comprehensive survey has found. Of 10 major metropolitan markets assessed in the housing affordability survey, Hong Kong had the least affordable housing for the sixth year in a row, followed by Sydney. Sydney replaced Vancouver as the second […]

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Australia:The deepening risks in the housing market

House prices surged further in the June quarter, though growth was concentrated almost entirely in Sydney and Melbourne — which highlights the growing risks in Australia’s biggest asset class. Nationally, the house price-to-income ratio reached a new high, reflecting lower interest rates and elevated investor activity. The current scenario appears unsustainable unless income growth picks […]

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Australia:Why you can’t blame Chinese investors for Australia’s property bubble

The scale of Chinese investment in the Australian residential property market continues to polarise public opinion. Chinese buyers are often blamed for driving up house prices in Australia and causing the current affordability crisis. However, Chinese offshore purchases are surprisingly low. Based on Foreign Investment Review Board (FIRB) approval figures, ABS data, and our own […]

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Lower Australia dollar to inflate Sydney, Melbourne property prices

The lower Australian dollar makes property cheaper for foreign buyers and could increase the bubble prices being paid for apartments in areas of Sydney and Melbourne. The dollar sank below US70¢ on Wednesday, for the first time since April 2009, and Deutsche Bank chief economist Adam Boyton​ predicts the dollar will keep falling to US60¢ by the end of 2016, and even past […]

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Australia’s housing market is looking a lot like the US, Ireland and Spain before the global financial crisis.

Australia’s big four banks are among the largest and most profitable financial institutions in the world. Despite this, it is mathematically impossible that these banks, primarily focused on domestic retail operations, could be as big and profitable as they currently are without one of the following taking place: either each of these banks, in their […]