Australian Property

By Leith van Onselen The poison of negative equity is spreading with buyers of off-the-plan apartments having to find additional funds because settlement valuations have plunged.

Via PIMCO: Australian housing prices have fallen for 15 consecutive months.

Toodleoo: HIA New Home Sales is among a string of housing market indicators signalling the downturn in new home building – which actually began in 2017 – will continue into 2019. Total new house sales declined by 2.9 per cent in August, following a fall of a similar magnitude (-3.1 per cent) in July.

Via Domainfax: China’s Golden Week annual holiday has come around again, and prestige agents are watching keenly in the hope it heralds a return of the foreign trophy-home hunters.

Weeoo, weeoo, weeoo.

By Leith van Onselen CoreLogic’s latest dwelling sales data was more bad news for those groups heavily reliant on property transactions, such as real estate agents and state governments (via stamp duty).

Via The Australian: Australia’s housing downturn could spill into the broader economy and spark a negative wealth effect as the price weakness spreads to cheaper properties, Morgan Stanley analysts warned.

The Martin North wrecking ball swings itself again: The latest in our “Property Market Front Line” series, with a property insider calling it as it is…with surprising results!

By Leith van Onselen With apartment owners stung by huge costs, and embroiled in legal battles, relating to dangerous flammable cladding that now must be removed, the buck passing has begun.

By Leith van Onselen With Australian dwelling values falling for 12 consecutive months, according to CoreLogic (see next chart), it’s an opportune time to compare the current housing correction to prior episodes.

By Leith van Onselen Several economists have warned that the fall-off in Australian dwelling construction could soon force-up unemployment: Mr Oliver said the worst is yet to come for Australia’s tradies, in a view supported by BIS Economics’s Angie Zigomanis.

Perhaps there is hope yet for Aussie property prices.

Following this morning’s post on CoreLogic’s daily dwelling values index results for September, which showed that Australian dwelling values fell for the 12th consecutive month, CoreLogic has released its full results, which also cover the smaller capitals and regional areas (see next table).

CoreLogic released its auction report yesterday, which reported another very weak weekend of auctions; albeit affected by the footy grand finals. The preliminary national auction clearance rate at just 49.1% versus 55.5% last weekend (later revised down to 52.4%).

By Leith van Onselen A survey of property experts and economists have tipped significant further falls in housing prices across Australia’s cities.