Increasing Population Causing Property Prices to Stabilise?

• 

  tonka on 30/07/2014 - 01:41

  +1

  The article just seems to be a bunch of quotes from other people strung together.

  My read on the article is increased construction may stabilise the supply and demand but continued population growth makes it a moving target.

  Further into the article it says,
  'residential construction has finally caught up to the quickly growing population.' and 'stronger population growth also means that it could take some time between supply and demand forces do equalise'

• 

  Cheeper on 30/07/2014 - 02:00

  The price of real estate or the cost of accommodation is affected by supply and demand.
  Currently the demand is outstripping the supply and in a persistent manner.
  Overseas investors being allowed to have free reign on purchasing is only pushing the market to ridiculous levels.
  Add to this increasing govt fees, material and labour costs and the only way for real estate to go is up.
  My prediction is that it will continue to increase for quite a while yet.
  The future is glum for home buyers and renters… Where will it end??
  Could we end up with an accommodation crisis? Surely there is just so much that the govt can subsidise?

  • 

    cloudy on 30/07/2014 - 07:46

    Just a note on oversea investors. The rba says they are buying mostly new construction apartments. Not the usual house. So they are on the margin increasing supply, since they invest in the construction buttthey don't contribute to the demand at the same amount.

    A big reason why prices are heading up is the baby boomers are you ot leaving their large houses. A house that used to house them and their 3 kids is just housing them now. So the usage of a house is falling. Our houses are under utilised as well as in short supply.

    • 

      pyramid on 30/07/2014 - 07:52

      +1

      Not true always though. Few auction of old houses in southern East suburbs of Melbourne were won buy overseas people. They paid whopping amount over the base price.

  • 

    StewBalls on 30/07/2014 - 09:59

    Overseas investors being allowed to have free reign on purchasing is only pushing the market to ridiculous levels.

    It's worth noting that this problem might get worse before it gets better…there are some significant changes about to take place (very soon) in the laws around multiple property ownership in China; imposing stiff financial penalties for those holding numerous properties.

    For this reason, a lot of my Chinese friends & colleagues are selling off their superfluous properties in parts of China now & thinking to reinvest that in Australian property, where we have no financial penalty for multiple property ownership.

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  Shadow54 on 30/07/2014 - 15:10

  My observation is somewhat at odds with the comments so far. To me it seems that with a few exceptions there's a huge glut of property around Australia and prices are generally in a range from stable to very weak.
  "The Age" (July 30th) claims the national median house price is $627,940 - other than for Sydney, Melbourne and a few wealthy coastal pockets, I just don't see the median price being anywhere near this level. Where I live (Melbourne outer western suburbs) you can by TWO very large and comfortable family homes for $627,940. The more mainstream property opinion I read the more I think that the media is pumping property investment based on very narrow and selective statistics. Many areas have hundreds of properties for sale, so WHAT SHORTAGE are we talking about? I read somewhere that in Melbourne alone there are something like 12,000 vacant properties at any given time…………

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  franksnsw33 on 02/08/2014 - 11:43

  There is much more to the capital growth than just population growth. There are many markets including Melbourne and WA that are experiencing a high population growth and high level infrastructure expenditure by government. There is a need by government to be ahead of the curb and the forecast population so there is always a lagg between the population actually filling the space between infrastructure and urbanised markets. Especially if the government is ahead of the curve this problem becomes evident. However in time the population fills the void and the markets stabilise.

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  tonyjzx on 02/08/2014 - 14:24

  its a load of bullshit

  you always get those articles

  market is going up, market is collapsing and here we are

  common sense tells you more population = more demands on housing = bouyant rental and sales

  the media is absolutely inconsistent when the do their 'reports'