House Prices In Melbourne

[Mel-Visitor]

What are the house prices like in Melbourne, how does it compare to other Australian cities such as Adelaide. Over in the UK house prices are always rising so it's difficult for first time buyers to start off.

[glen]

It s very hard over here as well. The prices of houses has risen by a huge amount in the last 12 months and lots of people can no longer afford to buy a home. And rent has gone up too!! Part of the problem is that unemployment is so low that there are more people in the market and this has pushed prices up.



You occasionally hear talk of a looming property crash but it never seems to happen! <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

[Mel-Visitor]

Glen,



Looks like we'll all have to come and live with you - lol



Could you give me an example of an average house price or average rental please?



Cheers



Mel-V

[glen]

they were just saying the other day on the news the average house price in Melbourne is about $430,000. It went up $50,000 in the last 12 months!!!!

[syd4ne]

[quote name='glen' post='3595' date='Oct 22 2007, 05:54 PM']It s very hard over here as well. The prices of houses has risen by a huge amount in the last 12 months and lots of people can no longer afford to buy a home. And rent has gone up too!! Part of the problem is that unemployment is so low that there are more people in the market and this has pushed prices up.



You occasionally hear talk of a looming property crash but it never seems to happen! <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />[/quote]

Reviving an old thread <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

My elder brother told me that house price has increased due to the fact that lots of foreigner investor purchase a property in Australia. He also mentioned that if government remove negative gearing, then house price will drop. Most Australian won't be happy if government remove negative gearing, as 60% of Australian own property investment. (Eg: if Kevin Rudd remove negative gearing, he certainly won't win his next election. LOL)



I can't link you to any website regarding negative gearing & the fact that 60% of Australian own property as their investment XD



But yeah, I start collecting Saturday Herald Sun to read article related to Melbourne property. I need to buy one for personal use in the next 3-4 years. Geez, the house price in Melbourne is heartbreaking.

[glen]

Yeah apparently it got easier in 2008 for foreign investors. I read that here:



[url="http://www.theage.com.au/business/property/rba-watching-foreign-investment-in-housing-20100326-r2b8.html"]http://www.theage.com.au/business/property...00326-r2b8.html[/url]



There is both a State and Federal election this year so there is bound to be commitments on all sides regarding housing affordability. I just have no clue what they will come up with. Limiting foreign investors to newly constructed houses would make sense.



Cheers, Glen

[glen]

Another interesting article



[url="http://www.theage.com.au/business/property/housing-bubble-to-burst-history-says-yes-20100430-txcc.html"]http://www.theage.com.au/business/property...00430-txcc.html[/url]

Australia's housing bubble would defy worldwide trends and all historical evidence if it did not burst, a US investment fund has said.



Jeremy Grantham, co-founder of Boston-based GMO, said Australian home prices continued to rise because the Reserve Bank's rapid interest rate cuts during the financial crisis “protected” the nation's housing bubble.



“But if they (home prices in Australia and the UK) don't go back to ... the old trend line multiple of family income, which should drive house prices, it will be the first time in history that such a bubble is not broken,” Mr Grantham said in a recent interview with the Financial Times.

[syd4ne]

[quote name='glen' post='26429' date='Apr 30 2010, 12:34 PM']Another interesting article



[url="http://www.theage.com.au/business/property/housing-bubble-to-burst-history-says-yes-20100430-txcc.html"]http://www.theage.com.au/business/property...00430-txcc.html[/url][/quote]

Ouch.. I dont understand that quotation at all XD

[glen]

Basically he is saying house prices will fall eventually. <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

[syd4ne]

[quote name='glen' post='26560' date='May 5 2010, 10:02 AM']Basically he is saying house prices will fall eventually. <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />[/quote]

oh really? even though demand > supply

[glen]

well lots of houses are being built so the housing shortage is not going to last forever. <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

[glen]

I found this interesting:

Although few people seem to be talking about it - and some experienced real estate agents remain unaware of it - the process of buying, selling or renting a house in Australia is about to undergo a fundamental change.



From May next year, state governments will phase in disclosure legislation that will require everyone selling or renting out a house to first obtain an energy-efficiency assessment and star rating from an accredited assessor.



The idea is to provide potential buyers and renters with a snapshot of a building's thermal performance and a list of measures that will improve its star rating, from relatively quick, cheap fixes, such as weather sealing, to hellishly expensive options such as retrofitting double glazing. Eventually, the scheme will expand to include water consumption and greenhouse gas emissions and apply to all residential dwellings, including apartments.

[url="http://theage.domain.com.au/real-estate-news/conscience-mandated-20100508-ukd2.html"]http://theage.domain.com.au/real-estate-ne...00508-ukd2.html[/url]

[iblis.raeb]

Glen, that would have been useful information before i learned the hard way that my apartment costs about $50 (or some such ridiculously expensive amount) a week to heat during the winter months, that's with the heating (one of those 2400 watt wall mounted units─the unit never auto turned off) running from morning till night.

[glen]

yeah i think the place i am renting at the moment would have a zero star energy rating <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

[glen]

Perhaps increase construction of high rise buildings in Melbourne will assist with housing affordability. I hope so!

ABOUT 50 apartment projects have been started so far this year in Melbourne, research shows, bringing the value of apartments announced and being built in the city to almost $4 billion.



The 50 apartment blocks amount to 5600 units, with 76 per cent of these in five main municipalities - Melbourne (28 per cent), Stonnington (22 per cent), Yarra (15 per cent), Port Phillip (7 per cent) and Bayside (4 per cent) - according to Oliver Hume Real Estate.



BCI Australia estimated that new multi-residential projects announced in Melbourne since January 1 were valued at $2.32 billion - a sure sign that confidence was returning to Victoria.

[url="http://theage.domain.com.au/apartments-on-the-move-20100511-uuyf.html"]http://theage.domain.com.au/apartments-on-...00511-uuyf.html[/url]

[glen]

Interesting article re: house prices in melbourne. Perhaps in the next month or so we will get a real sense of the impacts that foreign investment was having on house prices.



Cheers, Glen

Housing puzzle



Analysts, as well as the central bank, have been puzzled by the disparity between slumping home loans and ongoing increases in home prices, which rose 20 per cent in the year to March on ABS figures.



In its quarterly Statement of Monetary Policy, released last week, the RBA said, ''the divergence between aggregate nationwide loan approvals and housing prices remains something of a puzzle, although the developments in housing finance across the states appear to be broadly consistent with developments in prices''.



The RBA speculated that more up-graders were buying without the need for loans, while activity in the first home buyers market - a segment heavily dependent on borrowing - has fallen.



Other analysts have speculated that the gap between prices and loan volumes could be explained by foreign investors, a source of demand likely to cool in future months following a government crackdown announced last month.

[url="http://theage.domain.com.au/real-estate-news/home-loans-fall-rate-rises-bite-20100512-uw72.html"]http://theage.domain.com.au/real-estate-ne...00512-uw72.html[/url]

[glen]

I found this interesting:

In total, BIS [Shrapnel] expects immigration to fall from 298,900 this year to only 145,000 in 2012. If those predictions eventuate, it seems like Australia’s great housing shortage will turn into a massive housing surplus with thousands more dwellings being constructed than is necessary to match the population rises.

[url="http://www.crikey.com.au/2010/05/18/get-set-for-another-surplus-this-time-in-housing/"]http://www.crikey.com.au/2010/05/18/get-se...ime-in-housing/[/url]

[glen]

The type of news I like <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />

But analysts say a slowdown in the housing market is already underway. Home loans have fallen for the sixth consecutive month in March, according to the ABS.



Also, auction clearance rates last weekend sank to 63 per cent in Sydney and 67 per cent in Melbourne last weekend, from 80 per cent levels seen at the end of last year.



Charter Keck Cramer executive chairman Scott Keck said prices in Melbourne and Sydney are stalling because they've gotten to the point where people can't borrow any more or withstand any more interest rate hikes.

[url="http://theage.domain.com.au/real-estate-news/investors-may-boost-residential-property-market-20100524-w5dm.html"]http://theage.domain.com.au/real-estate-ne...00524-w5dm.html[/url]

[glen]

Interesting article that says there is a property price bubble simply because the banks are too willing to lend money.



[url="http://www.crikey.com.au/2010/05/25/property-bubble-lets-get-the-facts-straight-please/"]http://www.crikey.com.au/2010/05/25/proper...traight-please/[/url]

[syd4ne]

thank you for all of these articles, glen <img src='http://www.melbournechat.org/public/style_emoticons/<#EMO_DIR#>/smile.gif' class='bbc_emoticon' alt='' />