Australian Property

New research from Propertyology has advised owners of recently built apartments to consider cutting their losses and selling now before : The analysis from respected property market research firm Propertyology said unit owners who were patiently waiting for prices to rebound were playing Russian Roulette with their financial futures amid a looming apartment crisis.

Last week we reported that the NSW Government had belatedly appointed a dedicated building commissioner to return integrity to the construction industry amid the proliferation of flammable cladding and structural faults across the apartment market.

SQM Research has released its stock on market report for July, which posted another 2.8% fall in listings over the month but a 0.7% increase in listings over the year: Listings fell across all markets over July, whereas over the year for sale listings rose everywhere except Sydney (-10.5%), Perth (-2.6%) and Darwin (-4.8%).

From CoreLogic’s Cameron Kusher: Over the 28 days to 28 July 2019, CoreLogic was tracking 27,848 unique newly listed properties advertised for sale and 207,883 total properties listed for sale.

Via Martin North today: The DFA mortgage stress tracker to the end of July 2019 is released today.

The “tiny home’ phenomenon continues to get touted as a solution to Australia’s chronic housing affordability problems – not only for our youth, but also as a way to house the homeless: A tiny home village has been opened in Melbourne’s west for those who have experienced homelessness and need a permanent residence.

Via CoreLogic, the leading mortgage index is ramping into Spring: Looks pretty firm and is now up year on year for the first time in 2019.

Fixing cracks in the Mascot Towers apartment building’s primary support structure will cost $10 million – half the initial building cost of $22 million – according to information to be presented at an owners meeting on 22 August.

The Australian reports that the Council of Financial Regulators (CoFR) recommended in February that the federal government impose a ban on property investment through self-managed superannuation funds (SMSFs), but its recommendation was ignored by Treasurer Josh Frydenberg.

As we know, developer Ralan has collapsed, via The Australian: The collapse of the prolific east coast suburban apartment developer Ralan Group, headed by British-born William O’Dwyer, owing creditors at least half a billion dollars has highlighted the fragile state of the high-rise property market.

Via Mortgage Business: The recent spike in housing market sentiment could be luring speculators into a “bull trap” with the dwelling values to continue falling, according to analysts.

As we know, developer Ralan has collapsed, via The Australian: The collapse of the prolific east coast suburban apartment developer Ralan Group, headed by British-born William O’Dwyer, owing creditors at least half a billion dollars has highlighted the fragile state of the high-rise property market.

For the past few years I have had in mind a double dip scenario for property prices.

In the week ended 1 August 2019, the CoreLogic 5-city daily dwelling price index, which covers the five major capital city markets, rose another 0.05%: It was the third consecutive weekly rise.

CoreLogic has released data showing the growth in dwelling values across major jurisdictions over both the short-term (monthly) and very long-term (20-years): As you can see, the data clearly busts the common myth that Australian dwelling values double in value every 10 years.

The Morrison Government has already baulked on its election commitment not to touch rules around negative gearing, introducing a $50 million plan to end tax deductions related to vacant land.