Another report has been released highlighting the absurdity of the Sydney housing market, with just one suburb having a median house price below $500,000 – Willmot 50 kilometres west of Sydney’s CBD. From Domain:
It’s the end of an affordability era. After a five-year boom Sydney has just one suburb left with a median house price under $500,000.
The lone hold-out is Willmot, a small triangular suburb 50 kilometres west of Sydney’s CBD.
There are just 632 houses located in the suburb, which was established in the early 1970s and named for the first president of the Blacktown Shire Council, Thomas Willmot. The majority of the suburb’s homes are owned by investors.
It has been this feverish investor activity that has led to the disappearance of Sydney’s sub-$500,000 suburbs. At the start of the year there were four and five years ago there were more than 150…
The suburb’s median household income is $886 – $600 less than the median for NSW. Census data shows a quarter of households are paying above 30 per cent of their income in rent, compared with 12.9 per cent statewide…
I am constantly amazed that young Sydneysiders aren’t rioting in the streets with pitchforks against the deliberate government policies that have helped cause this mess and robbed them of a housing future.
Rioting! HA!! They’re not poor – they’re just temporarily embarrassed millionaires.
8millMEMBER
poor bstds,
Imagine living in a sub $1 mill suburb, when you’re likely earning more than the $50k per yr?
Bob Sickle
I see that Bidwill makes the list………
I graduated from Armidale Teachers College in 1980, young dumb and ready to do my bit to help make the world a better place for all. But into the teeth of a mean recession, we were unbonded graduates, meaning we had to wait for our names to come to the top of a waiting list before being offered a job.
Bidwill gained notoriety in October 1981 after widespread media coverage of the so-called Bidwill riots.
The Daily Telegraph’s headline read: “Savage Night of Violence: 1,000 Kids in Wild Rampage”.
The newspaper reported that “1,000 boys and girls from rival schools fought a bloody, no-holds-barred battle that held a Sydney suburb in terror.”
Sheesh, wild feral young ‘uns on the rampage……….more;
“The western Sydney suburb of Bidwill has gone from a community where most residents worked, to one where more than 90 per cent are living on Centrelink payments”
Guess where my first teaching job offer in 1982 was – you guessed it Bidwill, as district relief teacher servicing Bidwill and other schools in the area, told them to shove their offer up their collective arses. Best decision I ever made before retraining as a ‘Software Engineer’…..sounds so much better.
90% on centrelink – hey but the damn bogans are making a motza on their homes.
Cashed up bogans on centrelink – the worst type possible.
Stewie GriffinMEMBER
Young Australians are like North Koreans believing they’re living in a workers paradise – with no memory or knowledge of life “Before” unaffordability is the only reality they’ve ever known.
ResearchtimeMEMBER
Like London, Paris, Tokyo, New York… Sydney is migrating into the big time.
Even if there is a crash elsewhere, Sydney will tip, but housing unaffordability will rise simply because peoples ability to borrow debt will diminish.
There needs to be an extra layer of analysis here. This is a long-term shift. We are a growing country. Will we have a correction??? Undoubtedly! … but it won’t be as deep or beneficial to locals as many hope for. Certainly 99.9% of people this website. In fact I make a prediction which will be 100% accurate, this next crash will exacerbate housing unaffordability. Not cure it.
You are looking at the wrong data sets.
AngryMan
Well they need somewhere for all the poor labor voters to live dont they.
Certainly the new Chinese landlords of Australia dont want to have to look at them.
Andrew
Agreed. Why would they riot? This is a sign that everyone in Sydney is a millionaire, or will be when their parents snuff it. Congrats to Bubble Stevens and his magic money machine.
Andrew
Mum and Dad leave a house worth $1m to their 3 kids. 3 kids each get $333k equiv / third of a house.
Alternate reality (house worth due to $500k due to different policies): 3 kids each get $166k equiv / third of a house.
😉
Andrew
Yes, but having a third of a house which is 10 times the price makes you 10 times richer. Just like when my wife asked me on Friday how many slices I wanted her to cut my pizza into. I said, “Six please. I’ll never eat eight”.
Was reminded over the weekend of Irish property not long ago valued at 1,500,000 (Euros) is now 200,000 and a bank is offering 7,000 for the occupant to vacate the property….but cannot happen in Auz.
Like it could never happen in Canada too, ah? Toronto dropped 17%, from memory, in just a few months with more listings than you can poke a stick at and plenty of same codswallop why their markets will stay up into eternity.
Andrew
Yes, I was living in the UK when it definitely couldn’t happen there either.
Bob Sickle
Ditto………
Owen
They are like little scientologists. Not that gen x mouth breathers are much better. It’s cool to be dumb. With gen y it’s cool to think you are smart but actually be dumb. Pure unbridled Darwinism. It will be interesting to see what the next generation will be like, 50% white 50% non white. I wonder if they’ll have any self respect. They might want it but it will probably be still banned.
Bottle shops are now the ‘Community Centre Hub’……fucking LOL….while the locals are ‘renting’ Real Estate Gold Mines.
“No supermarket in renovated shopping centre
The Bidwill Shopping Centre has undergone a $3 million renovation, but there is no supermarket: the owners have not been able to find a tenant for years. There is just one shop: a takeaway shop.
“Growing up in Bidwill that shopping centre was a bit of a hub, there was the big supermarket,” Ms Carr recalls.
“It was still a poor place, everybody bought Black and Gold then, but there was a newsagent and the doctor and the chemist and takeaway shop.
“It was kind of fun. You’d go there after school and before school and get hot chips. But now it’s a shell.”
The Bidwill Hotel’s drive-in bottle shop fills the gap for life’s essentials, including bread, milk, eggs and nappies, all alongside wine, beer, spirits and stands of lollies.
The owner and publican declines the ABC’s request for an interview but allows a short visit without the glare of our television camera.
Uniting Church deacon John Dasey says it is not ideal that parents have to drag the kids to a bottle shop, and it is also expensive.
“That’s not saying anything against the bottle shop, just the reality that they can only carry limited stock and naturally it’s more expensive,” he said.
“It’s very much a compromised position.”
Ronin8317MEMBER
I wonder how many readers on this site would remember what a choke is :-p
PaMEMBER
@Bob Sickle
The old HD had a bottle opener under the glove box, it was a punch out in the dash sheet metal, just to the left under the glove box, very handy in the old non screw top days
Bob Sickle
Yep remember well.
On those long road trips the front seat passenger was also the designated ‘bottle opener upper’ – and when the stubby was finished, out the window it went.
Although for safety precautions the designated driver was only allowed 6 beers
Bob Sickle
Makes me wanna puke….
I believe my old mate Seamen Stains has been active in the lounge room and the bedrooms. Ahoy there matey !
The only way to improve that dump is with a can of kerosene and a bic cigarette lighter !
Hunter80MEMBER
Tim Ross or some other mid-century modernist lover might buy it for hipster cred?
stagmal
100% Owen, noticed this as well. so many of my fellow millenials are so publicly and vocally so liberal and supportive of progressivism, equal rights and being a moralistic and good person, but in their PRIVATE lives, it all comes apart: they are absolutely deplorable. snarly, two-faced, catty and hateful. they use their education as an excuse to be indifferent or closed-off to any kind of views that oppose their own. it’s a dichotomy that has fascinated and appalled me in equal measure. They’re busy with keeping up appearances, but do not practice the type of “acceptance” and support they like to project.
millenials are the “air” generation; air of morality without being moral, air of tolerance without actually being tolerant, air of intelligence without actually knowing anything or having any keen insights that wasnt dripfed to them by their university lecturers. it’s all about creating the impression that you’re a good and well-rounded human being, not actually being one.
caeos
Good little commies in the making.
Owen
Very well put. Oh well they goin down. Theyre getting nearly as old as gen x now. Tick tock.
DT
I feel sorry for Millennials who have to put up with this sort of condescending attitude from their parents and bosses.
Remember that home ownership among millennials is way lower than the average. Their debt levels are also way lower and they are more entrepreneurial. They will be picking up the pieces (and the cheap homes) when this falls apart.
Owen
They should be making it fall apart instead of virtue signalling. Be Australians.
stagmal
too right, their insistence on backing the ponzi has meant the house price has partially been a beast of their own creation.
p.s i am a millenial.
steve99
Apart from the millennial tradesmen and their ute’s buying up the new estates in the outburbs with the money they ripped off old from old folk (they’re all rich you know) for moving their electric cooker 10cm to the left (my mother got stung $300 for this by a 12 year old electrician, I tried to trace him down but they know all the tricks) .. Or the privately educated millennials getting a deposit from their granny/parents and doing their best to pay the highest price ever in a suburban auction. This lot are in bed with the likes of Joe Hockey and scrotum Morrison.
Millennial riots are not going to happen, they are so disconnected from one another that all you have left that should want to protest house prices and job opportunity are those that are most in need but incapable of organising anything much like our growing cohort of ferals or left-over unemployed bogans.
hareebaMEMBER
So in other words they are just ethically constipated.
Ino
fake it until you make it.
stagmal
where the hell is wilmot?
Bob Sickle
Not far from Bidwill.
If ever the good lord was gunna give the world one hellova enema, he will be putting the tube directly into Bidwill
Johnx
You buried the lead.
“The majority of the suburb’s homes are owned by investors.”
How long before a majority of homes in a majority of suburbs are owned by investors?
After the Domain article, the number of <$500K suburb will be 0 next month. I expect a horde of speculators buying up everything in sight because it's "cheap" this weekend.
GavinMEMBER
There are just 632 houses located in the suburb, which was established in the early 1970s and named for the first president of the Blacktown Shire Council, Thomas Willmot. The majority of the suburb’s homes are owned by investors.
So just a matter of time before Wilmot joins the $1M club. Yay!
DanMEMBER
Sydney residents are fleeing, to be replaced by migrants from overseas. Its a recolonization.
HIGHEST NET MIGRATION LOSSES
1 Sydney – Inner South West -7 992
2 Sydney – Parramatta -4 728
3 Western Australian – Outback -3 844
4 Sydney – Inner West -3 744
5 Brisbane – South -3 402
stagmal
melbourne is going to be sydney 2.0 soon!!
DanMEMBER
Yes, agree. Melbourne has had positive internal migration, until now, but house prices and rents starting to catch up with Sydney.
ZMK
And Brisbane 3.0.
DanMEMBER
Net Internal Migration Greater Sydney
2013/14 -14,900
2014/15 -15,900
2015/16 -23,200
AlbyMangles
the displacement of Australians out of Sydney and Melbourne is an absolute disgrace and shows what a shithole this once liveable country has become
SoMPLSBoyMEMBER
“…a recolonization.”
Precisely Dan.
All the former colonial powers (UK and European) are deploying one final, desperate, colonial ‘play’ to ensure the ROI for their politicians and trusted ‘advisers’ is superior even if it leads to self-destruction. The aftermath ( which will not be pretty) will just have to be faced by those unlucky enough to inherit the predicament.
The UK & Eurozone are undergoing astonishingly rapid change via immigration and it is the same in Straya.
What ‘was’ just a generation ago for each of these locations will never return as many falsely assume as the changes are permanent. In our case, as China struggles to produce enough food for her people while systematically destroying their environment, we’ll remain a popular destination for a long time to come. It’s a bonus for the Chinese that we’re so easily bought with fiat currency and are so accommodating as we don’t have Anti-money laundering (AML) legislation on real property.
The preposterous absence of AML is proof positive that ‘we’ have consented to be colonized too and there is no going ‘back. http://www.bbc.com/news/business-40678191
Owen
I wonder if these old money types will survive. The alt right has fizzed out, thanks largely to these old money types preventing any actual sovereignty from occurring, now they have absolutely no credibility and the left will probably be in for a long time. What a bunch of idiots.
billygoatMEMBER
@somplsboy
COLONized – we certainly have been.
yogiman
There’s been a few tall building completed in Parramatta since 2015, and more under construction. I’m sure its population has increased substantially since those 2015 figures (but might not be quite enough to fill all of those new buildings).
Simon
Sent this to my Sydney-sider friend. She said “It sounds silly but she’ll make a mint out of it anyway keeping it as an investment.”
I just don’t get why you would think there’s any need to riot. Booming house prices are a much loved part of the Aussie way and we should be celebrating with copious relations (and are, I assure you). Thank you for helping to encourage Lower teh interest rates as it has fixed thing!
Jacob
And the Aussie millennials who cannot afford a house prefer to live in a Delhi slum anyway:
These ‘copious relations’ are to ensure succession planning with the next generation of fabulously gorgeous property tycoons or mere pleasure seeking fornication?
QuentinMEMBER
Well domainfax now running a story about growth ‘slowing’ in July. Was around 3% growth in June now a mere 2.1%…. or 25.2% annualised! Plus heading into Spring fomo season.
The RBA quite simply, must hike.
Andrew
Is it RBA or our immigration settings? I’d argue the latter, but obviously if you swing a blunt instrument hard enough it will work; but will also sink the economy into a deep recession.
QuentinMEMBER
Both really. Immigration is a driver but the lowest interest rates in Oz history is certainly an enabler.
But as the RBA is the only institution to show any inclination to end the madness (most govt policies actually make it worse) then that is the horse I’m backing!
Andrew
House prices cratering in the likes of Darwin, falling in Perth, stagnant in some other cities. Not sure it is the answer for the ‘globalisation’ of Sydney and Melbourne.
DanMEMBER
Its both. Where you have a tight housing market prices will rise to the limit of people’s ability to pay, and rate cuts enable that to go higher. Where the market isn’t tight (i.e supply exceeds demand) people aren’t forced to extend themselves to outbid others, so rate cuts have little effect.
Other factor revealed by the census is that the latest cohorts of migrants aren’t dispersing across the country as previous waves did, preferring to congregate together in big cities with others of the same community.
You can discuss what is causing it all you want. It is ultimitely a hybrid of a basket of factors.
But if Sydney still runs (as it has done in July) at 2% capital growth a month from already nosebleed levels the RBA is completely ignorant if it doesn’t hike. It must. This is rampant inflation…
Andrew
We can agree there is strong price growth and multitude of factors, yes including low rates. However, interest rates are a very blunt tool and the broader Aus economy/property markets don’t need higher rates right now.
Funny all this talk about migration. Canada had migrants too, so did the Gold Coast, ah? In fact, some years ago California’s internal migration was so high that they worked out it would empty out the rest of the U.S.???
That didn’t stop their house markets cratering, did it?
Andrew
Australia is v heavily urbanised to e.g. US. What you’ve got is essentially a funnelling of people/wealth into limited land areas in Sydney and Melbourne. Don’t need to be Einstein to see what that will do for land prices in these cities 🙂
So what about Miami, Los Angeles, Las Vegas, New York, Dublin, Dubai, Perth, Darwin. Tokyo ? Not enough urbanization for you? How about Toronto, Vancouver? Still not enough?
Sorry, Australia is different – we have kangaroos!
DominicMEMBER
“Only one Sydney suburb has a median house price below $500k.”
Rioting! HA!! They’re not poor – they’re just temporarily embarrassed millionaires.
poor bstds,
Imagine living in a sub $1 mill suburb, when you’re likely earning more than the $50k per yr?
I see that Bidwill makes the list………
I graduated from Armidale Teachers College in 1980, young dumb and ready to do my bit to help make the world a better place for all. But into the teeth of a mean recession, we were unbonded graduates, meaning we had to wait for our names to come to the top of a waiting list before being offered a job.
Meanwhile this happened;
http://www.abc.net.au/news/2014-02-07/bidwill-a-suburb-in-crisis/5240962
“Bidwill makes headlines with riots
Bidwill gained notoriety in October 1981 after widespread media coverage of the so-called Bidwill riots.
The Daily Telegraph’s headline read: “Savage Night of Violence: 1,000 Kids in Wild Rampage”.
The newspaper reported that “1,000 boys and girls from rival schools fought a bloody, no-holds-barred battle that held a Sydney suburb in terror.”
Sheesh, wild feral young ‘uns on the rampage……….more;
“The western Sydney suburb of Bidwill has gone from a community where most residents worked, to one where more than 90 per cent are living on Centrelink payments”
Guess where my first teaching job offer in 1982 was – you guessed it Bidwill, as district relief teacher servicing Bidwill and other schools in the area, told them to shove their offer up their collective arses. Best decision I ever made before retraining as a ‘Software Engineer’…..sounds so much better.
90% on centrelink – hey but the damn bogans are making a motza on their homes.
Cashed up bogans on centrelink – the worst type possible.
Young Australians are like North Koreans believing they’re living in a workers paradise – with no memory or knowledge of life “Before” unaffordability is the only reality they’ve ever known.
Like London, Paris, Tokyo, New York… Sydney is migrating into the big time.
Even if there is a crash elsewhere, Sydney will tip, but housing unaffordability will rise simply because peoples ability to borrow debt will diminish.
There needs to be an extra layer of analysis here. This is a long-term shift. We are a growing country. Will we have a correction??? Undoubtedly! … but it won’t be as deep or beneficial to locals as many hope for. Certainly 99.9% of people this website. In fact I make a prediction which will be 100% accurate, this next crash will exacerbate housing unaffordability. Not cure it.
You are looking at the wrong data sets.
Well they need somewhere for all the poor labor voters to live dont they.
Certainly the new Chinese landlords of Australia dont want to have to look at them.
Agreed. Why would they riot? This is a sign that everyone in Sydney is a millionaire, or will be when their parents snuff it. Congrats to Bubble Stevens and his magic money machine.
Mum and Dad leave a house worth $1m to their 3 kids. 3 kids each get $333k equiv / third of a house.
Alternate reality (house worth due to $500k due to different policies): 3 kids each get $166k equiv / third of a house.
😉
Yes, but having a third of a house which is 10 times the price makes you 10 times richer. Just like when my wife asked me on Friday how many slices I wanted her to cut my pizza into. I said, “Six please. I’ll never eat eight”.
haha
Mate, they just go and buy their own before that.
Only in Oz
http://www.zerohedge.com/news/2017-07-23/13-year-old-kid-buys-552000-home
Was reminded over the weekend of Irish property not long ago valued at 1,500,000 (Euros) is now 200,000 and a bank is offering 7,000 for the occupant to vacate the property….but cannot happen in Auz.
Like it could never happen in Canada too, ah? Toronto dropped 17%, from memory, in just a few months with more listings than you can poke a stick at and plenty of same codswallop why their markets will stay up into eternity.
Yes, I was living in the UK when it definitely couldn’t happen there either.
Ditto………
They are like little scientologists. Not that gen x mouth breathers are much better. It’s cool to be dumb. With gen y it’s cool to think you are smart but actually be dumb. Pure unbridled Darwinism. It will be interesting to see what the next generation will be like, 50% white 50% non white. I wonder if they’ll have any self respect. They might want it but it will probably be still banned.
And look at the kind of luxurious mansions that half a million dollars buys there…
http://www.realestate.com.au/property-house-nsw-willmot-125674330
willmot is the type of place where you used to pull the choke out so your car wouldn’t stall when passing through
shops look like something out of south sudan, ive been told the place is heavily fortified lol
https://www.google.com.au/maps/@-33.725702,150.7923197,3a,75y,46.5h,85.35t/data=!3m6!1e1!3m4!1sh9jJLBUGitNn0FAej92Hug!2e0!7i13312!8i6656
Gold – my old HD holden station used to go like the clappers off the mark with a bit of ‘choke’.
Never mind you took your life into your own hands when going through a corner too fast.
The HD part stood for ‘Highly Dangerous’
I try to never pine for the good old days
http://www.abc.net.au/news/2014-02-07/bidwill-a-suburb-in-crisis/5240962
Bottle shops are now the ‘Community Centre Hub’……fucking LOL….while the locals are ‘renting’ Real Estate Gold Mines.
“No supermarket in renovated shopping centre
The Bidwill Shopping Centre has undergone a $3 million renovation, but there is no supermarket: the owners have not been able to find a tenant for years. There is just one shop: a takeaway shop.
“Growing up in Bidwill that shopping centre was a bit of a hub, there was the big supermarket,” Ms Carr recalls.
“It was still a poor place, everybody bought Black and Gold then, but there was a newsagent and the doctor and the chemist and takeaway shop.
“It was kind of fun. You’d go there after school and before school and get hot chips. But now it’s a shell.”
The Bidwill Hotel’s drive-in bottle shop fills the gap for life’s essentials, including bread, milk, eggs and nappies, all alongside wine, beer, spirits and stands of lollies.
The owner and publican declines the ABC’s request for an interview but allows a short visit without the glare of our television camera.
Uniting Church deacon John Dasey says it is not ideal that parents have to drag the kids to a bottle shop, and it is also expensive.
“That’s not saying anything against the bottle shop, just the reality that they can only carry limited stock and naturally it’s more expensive,” he said.
“It’s very much a compromised position.”
I wonder how many readers on this site would remember what a choke is :-p
@Bob Sickle
The old HD had a bottle opener under the glove box, it was a punch out in the dash sheet metal, just to the left under the glove box, very handy in the old non screw top days
Yep remember well.
On those long road trips the front seat passenger was also the designated ‘bottle opener upper’ – and when the stubby was finished, out the window it went.
Although for safety precautions the designated driver was only allowed 6 beers
Makes me wanna puke….
I believe my old mate Seamen Stains has been active in the lounge room and the bedrooms. Ahoy there matey !
The only way to improve that dump is with a can of kerosene and a bic cigarette lighter !
Tim Ross or some other mid-century modernist lover might buy it for hipster cred?
100% Owen, noticed this as well. so many of my fellow millenials are so publicly and vocally so liberal and supportive of progressivism, equal rights and being a moralistic and good person, but in their PRIVATE lives, it all comes apart: they are absolutely deplorable. snarly, two-faced, catty and hateful. they use their education as an excuse to be indifferent or closed-off to any kind of views that oppose their own. it’s a dichotomy that has fascinated and appalled me in equal measure. They’re busy with keeping up appearances, but do not practice the type of “acceptance” and support they like to project.
millenials are the “air” generation; air of morality without being moral, air of tolerance without actually being tolerant, air of intelligence without actually knowing anything or having any keen insights that wasnt dripfed to them by their university lecturers. it’s all about creating the impression that you’re a good and well-rounded human being, not actually being one.
Good little commies in the making.
Very well put. Oh well they goin down. Theyre getting nearly as old as gen x now. Tick tock.
I feel sorry for Millennials who have to put up with this sort of condescending attitude from their parents and bosses.
Remember that home ownership among millennials is way lower than the average. Their debt levels are also way lower and they are more entrepreneurial. They will be picking up the pieces (and the cheap homes) when this falls apart.
They should be making it fall apart instead of virtue signalling. Be Australians.
too right, their insistence on backing the ponzi has meant the house price has partially been a beast of their own creation.
p.s i am a millenial.
Apart from the millennial tradesmen and their ute’s buying up the new estates in the outburbs with the money they ripped off old from old folk (they’re all rich you know) for moving their electric cooker 10cm to the left (my mother got stung $300 for this by a 12 year old electrician, I tried to trace him down but they know all the tricks) .. Or the privately educated millennials getting a deposit from their granny/parents and doing their best to pay the highest price ever in a suburban auction. This lot are in bed with the likes of Joe Hockey and scrotum Morrison.
Millennial riots are not going to happen, they are so disconnected from one another that all you have left that should want to protest house prices and job opportunity are those that are most in need but incapable of organising anything much like our growing cohort of ferals or left-over unemployed bogans.
So in other words they are just ethically constipated.
fake it until you make it.
where the hell is wilmot?
Not far from Bidwill.
If ever the good lord was gunna give the world one hellova enema, he will be putting the tube directly into Bidwill
You buried the lead.
“The majority of the suburb’s homes are owned by investors.”
How long before a majority of homes in a majority of suburbs are owned by investors?
They probably think like this couple:
http://www.smh.com.au/world/australians-who-live-on-slumdog-millionaires-row–and-love-it-20090227-8k84.html
After the Domain article, the number of <$500K suburb will be 0 next month. I expect a horde of speculators buying up everything in sight because it's "cheap" this weekend.
So just a matter of time before Wilmot joins the $1M club. Yay!
Sydney residents are fleeing, to be replaced by migrants from overseas. Its a recolonization.
http://www.abs.gov.au/ausstats/[email protected]/Previousproducts/3412.0Main%20Features72014-15?opendocument&tabname=Summary&prodno=3412.0&issue=2014-15&num=&view=
HIGHEST NET MIGRATION LOSSES
1 Sydney – Inner South West -7 992
2 Sydney – Parramatta -4 728
3 Western Australian – Outback -3 844
4 Sydney – Inner West -3 744
5 Brisbane – South -3 402
melbourne is going to be sydney 2.0 soon!!
Yes, agree. Melbourne has had positive internal migration, until now, but house prices and rents starting to catch up with Sydney.
And Brisbane 3.0.
Net Internal Migration Greater Sydney
2013/14 -14,900
2014/15 -15,900
2015/16 -23,200
the displacement of Australians out of Sydney and Melbourne is an absolute disgrace and shows what a shithole this once liveable country has become
“…a recolonization.”
Precisely Dan.
All the former colonial powers (UK and European) are deploying one final, desperate, colonial ‘play’ to ensure the ROI for their politicians and trusted ‘advisers’ is superior even if it leads to self-destruction. The aftermath ( which will not be pretty) will just have to be faced by those unlucky enough to inherit the predicament.
The UK & Eurozone are undergoing astonishingly rapid change via immigration and it is the same in Straya.
What ‘was’ just a generation ago for each of these locations will never return as many falsely assume as the changes are permanent. In our case, as China struggles to produce enough food for her people while systematically destroying their environment, we’ll remain a popular destination for a long time to come. It’s a bonus for the Chinese that we’re so easily bought with fiat currency and are so accommodating as we don’t have Anti-money laundering (AML) legislation on real property.
The preposterous absence of AML is proof positive that ‘we’ have consented to be colonized too and there is no going ‘back.
http://www.bbc.com/news/business-40678191
I wonder if these old money types will survive. The alt right has fizzed out, thanks largely to these old money types preventing any actual sovereignty from occurring, now they have absolutely no credibility and the left will probably be in for a long time. What a bunch of idiots.
@somplsboy
COLONized – we certainly have been.
There’s been a few tall building completed in Parramatta since 2015, and more under construction. I’m sure its population has increased substantially since those 2015 figures (but might not be quite enough to fill all of those new buildings).
Sent this to my Sydney-sider friend. She said “It sounds silly but she’ll make a mint out of it anyway keeping it as an investment.”
Must be something in the water.
http://www.news.com.au/finance/real-estate/buying/mum-spends-900000-sydney-apartment-for-her-eightyearold-son/news-story/d177e15397fb91c348340b0e4a4b2281
I just don’t get why you would think there’s any need to riot. Booming house prices are a much loved part of the Aussie way and we should be celebrating with copious relations (and are, I assure you). Thank you for helping to encourage Lower teh interest rates as it has fixed thing!
And the Aussie millennials who cannot afford a house prefer to live in a Delhi slum anyway:
http://www.smh.com.au/national/a-real-riches-to-rags-story-20090227-8kd9.html
These ‘copious relations’ are to ensure succession planning with the next generation of fabulously gorgeous property tycoons or mere pleasure seeking fornication?
Well domainfax now running a story about growth ‘slowing’ in July. Was around 3% growth in June now a mere 2.1%…. or 25.2% annualised! Plus heading into Spring fomo season.
The RBA quite simply, must hike.
Is it RBA or our immigration settings? I’d argue the latter, but obviously if you swing a blunt instrument hard enough it will work; but will also sink the economy into a deep recession.
Both really. Immigration is a driver but the lowest interest rates in Oz history is certainly an enabler.
But as the RBA is the only institution to show any inclination to end the madness (most govt policies actually make it worse) then that is the horse I’m backing!
House prices cratering in the likes of Darwin, falling in Perth, stagnant in some other cities. Not sure it is the answer for the ‘globalisation’ of Sydney and Melbourne.
Its both. Where you have a tight housing market prices will rise to the limit of people’s ability to pay, and rate cuts enable that to go higher. Where the market isn’t tight (i.e supply exceeds demand) people aren’t forced to extend themselves to outbid others, so rate cuts have little effect.
Other factor revealed by the census is that the latest cohorts of migrants aren’t dispersing across the country as previous waves did, preferring to congregate together in big cities with others of the same community.
https://www.economist.com/news/leaders/21723418-demand-safe-assets-emerging-markets-creates-headache-policymakers-lessons
You can discuss what is causing it all you want. It is ultimitely a hybrid of a basket of factors.
But if Sydney still runs (as it has done in July) at 2% capital growth a month from already nosebleed levels the RBA is completely ignorant if it doesn’t hike. It must. This is rampant inflation…
We can agree there is strong price growth and multitude of factors, yes including low rates. However, interest rates are a very blunt tool and the broader Aus economy/property markets don’t need higher rates right now.
Funny all this talk about migration. Canada had migrants too, so did the Gold Coast, ah? In fact, some years ago California’s internal migration was so high that they worked out it would empty out the rest of the U.S.???
That didn’t stop their house markets cratering, did it?
Australia is v heavily urbanised to e.g. US. What you’ve got is essentially a funnelling of people/wealth into limited land areas in Sydney and Melbourne. Don’t need to be Einstein to see what that will do for land prices in these cities 🙂
So what about Miami, Los Angeles, Las Vegas, New York, Dublin, Dubai, Perth, Darwin. Tokyo ? Not enough urbanization for you? How about Toronto, Vancouver? Still not enough?
Sorry, Australia is different – we have kangaroos!
“Only one Sydney suburb has a median house price below $500k.”
Mmmm …. smells like an opportunity to me!