Nine sure is pumped about house prices

Via Crikey:

The Nine papers’ months of bubbling property-price reporting finally came to the boil this morning. The Australian Financial Review was packed with breathless coverage of an apparent spike in residential real estate prices.

National affairs editor Jennifer Hewett used her column to share an anecdote of attending an auction with her son, who “made a few limited attempts to get into the buying spirit at a much higher price than either he or his partner thought they should make … But he was quickly trumped by others willing to purchase a modest two-bedroom apartment at a level that would have been considered fantasy several months ago”.

This is joined by reports on Australia’s most expensive residence selling for $140 million, and “desperate”, “frustrated” property buyers who are “paying ‘well over value’ due to a lack of stock at the top end of the market”.

This follows reporting over the weekend on ANZ economists’ predictions that “Sydney and Melbourne house prices will be growing at more than 12% per annum by the middle of next year” by senior economics correspondent for The Age and The Sydney Morning Herald Shane Wright, as well as the AFR‘s prediction earlier this month that house market growth will return to something “close to boom times”.

Is the hysteria really warranted, or is it just the customary bump in the property market that happens every spring? Of course, reporting in breathless terms on this sellers’ market is in the interests of their Nine stablemate and cash printing machine, Domain

Nothing new under the Sun.

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. lol, under the Sun. But it is getting worse – more brazen and not even bothering with the pretence that they’re ‘journalists’.

    • ErmingtonPlumbing

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      Hope a Westerly is blowing if one comes.

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    • I don’t think many people actually realise just how fvcking much money a million dollars is, how long it takes to accrue, what amazing things you can do with it. Instead it has entered the language an a new type of value. Call it one property unit.
      So a two-bed shitbox in butt-fvck suburb, Sydney costs 1.3 property units. It all seems so normal when expressed that way.
      It’s a million dollars!. It is so much wealth by any reasonable measure except stupid Australian property where it’s just an abbreviation m.
      I am sad.

    • Awaiting moderation…Oh, gods sake, I am re-posting with the nasty poo word altered, hoping to get through moderation this time. Apologies if double posted due to later moderator approval…

      I don’t think many people actually realise just how fvcking much money a million dollars is, how long it takes to accrue, what amazing things you can do with it. Instead it has entered the language an a new type of value. Call it one property unit
      .
      So a two-bed sh!tbox in butt-fvck suburb, Sydney costs 1.3 property units. It all seems so normal when expressed that way.
      It’s a million dollars!. It is so much wealth by any reasonable measure except stupid Australian property where it’s just an abbreviation m.

      I am sad.

      • TailorTrashMEMBER

        Mate you have got it …..what’s million ?..when you can borrow it ! …..then the real cost and pain begins ….to service and pay it back …that is Sh1t hard ….no one seems to get that far in their thinking …..one day soon they will be forced to . …..painful

    • Calm down everyone. Fairfax and The Age/SMH is “independent – always” despite being shackled to the Nine Corporate Ally Cat. It must be true because I read it in the paper. If Nine is pumped about house prices it is independently pumped from Fairfax (for proof of that fact read from the start).

      It is no longer an Irish joke to have a piece of paper with “PTO” on both sides. This has become the Australian media-real estate dictum.

      The Block, PTO – Fairfax/Domain PTO, The Block PTO, Fairfax/Domain PTO….etc etc

      Are we there yet? Are we terminally stupid yet as a nation?

  2. Not feeling the slightest bit concerned about staying away, bitter looser I may be. This economy is going down and everything with it.
    Wake me when the post Christmas retail figures are out. Oh, that’s right:
    – mentioning that word is a political offence these days
    – the vast bulk of our recently arrived vibrant stimuli to the economy don’t celebrate it
    – the locals are too strapped paying mortgages, tolls, fuel, power etc to splurge

    It may turn out that houses follow – not lead – the onset of economic ruin, but in the end the result will be the same.

    • 100% mate – here is my comment from below:

      We’ve just had 18 months of the worst crash in a 100 years. As a result of that – over the horizon a 50 foot tsunami is heading our way of catastrophic unemployment via the apartment bust.

      Even if miraculously apartment sales tripled over night – there would still be an 18 month delay in restoring that unemployment canyon.

      Nothing can stop it – absolutely nothing.

      On top of that we have an epic switch to interest and primary as buyers are unable to take out new loans due to disclosure laws, all loans and debts are now known, and even with lighter lending requirements there will be no return to easy credit for those who should not be getting it – that is about 70% of applicants.

      Plus state and federal budgets are totally shot. Stamp duty and now GST is collapsing. Imagine what will happen when there is an increase in the unemployment queue of 8%….. there are 6,930,000 full time workers in Australia – half a million extra unemployed $14,000,000,000 billion in welfare and the same roughly in lost tax revenue – a $30 billion turn around.

      All that we are seeing here is a 20% crash in Sydney prices, the only people able to buy are the top end – and prices have stopped falling and this is now seen as a new boom.

  3. Savvy investors would take this opportunity to sell…and then buy again!

    NEVER a better time to buy! Or sell!

  4. Even StevenMEMBER

    I have to say… there can’t be too many staunch property bears left on MB. I mean sure, most of us think house prices are ridiculously overvalued… but are we still convinced a crash is coming?

    • We’ve just had 18 months of the worst crash in a 100 years. As a result of that – over the horizon a 50 foot tsunami is heading our way of catastrophic unemployment via the apartment bust.

      Even if miraculously apartment sales tripled over night – there would still be an 18 month delay in restoring that unemployment canyon.

      Nothing can stop it – absolutely nothing.

      On top of that we have an epic switch to interest and primary as buyers are unable to take out new loans due to disclosure laws, all loans and debts are now known, and even with lighter lending requirements there will be no return to easy credit for those who should not be getting it – that is about 70% of applicants.

      THEREFORE

      All that we are seeing here is a 20% crash in Sydney prices, the only people able to buy are the top end – and prices have stopped falling and this is now seen as a new boom.

      LAUGH MY FAR-KING ARSE OFF.

    • Leo. Well, it would suit me fine if you are correct. It would be great for me money-wise, so no resistance to your argument from that perspective.

      Could you tell me please what positions you are holding in line with your arguments? It would give me great confidence to know that you are skin in the game.

      Thanks in advance, Arty

  5. It’s a classic IO campaign. Nine Entertainment Chairman Peter “Mr Structural Deficit” Costello is in on the act claiming we’re all fvcked if we don’t go easy on the banks while screwing workers, sorry productivity reforms are the order of the day.

    That’s our risk at the moment’: Peter Costello warns about ‘over-regulating’ banks

    https://www.smh.com.au/business/banking-and-finance/that-s-our-risk-at-the-moment-peter-costello-warns-about-over-regulating-banks-20191022-p532yr.html