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Australian House Prices, Most Overvalued In World. (Read 25738 times)
imcrookonit
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Australian House Prices, Most Overvalued In World.
Mar 5th, 2011 at 6:34am
 
AUSTRALIAN house prices remain the most overvalued in the world, according to the latest quarterly ranking of global house prices by The Economist magazine.   Sad

Based on a historical gauge of home prices to rents between 1975 and 2010, the magazine estimates that Australian residences are 56 per cent overvalued, exceeding the 54 per cent overpriced rate in Hong Kong and 48 per cent in France.   Sad

''There may be good reasons for Australian prices to have risen so far, but people made similar, and ultimately incorrect, arguments for the run-up in prices in the West,'' The Economist said in a statement.


The report may stoke debate on whether the property market is a bubble waiting to pop.   Sad

The Economist's survey of 20 countries follows house price data released this week, which showed capital city value fell nationally by 1.6 per cent in January, a result of higher interest rates and floods in Queensland and Victoria deterring buyers.

Australia's city home values fell 1.6 per cent, seasonally adjusted, to $465,000 after rising 0.2 per cent in December, according to RP Data-Rismark figures. Outside the major cities, they fell by 1.2 per cent in the month.

But countering the concerns over a bubble is the weakness in housing construction. Figures out this week showed new building approvals slumped in January by the most in more than eight years, although much of the drop may reflect disruption caused by widespread flooding in the month.

The Economist also noted that while Australia's economy had outperformed most in the developed world in recent years, the recent surge in house prices might be hard to justify.   Sad

''In the years before the financial crisis, Australia's economy set a hard, fast pace for the rest of the Anglo-Saxon world,'' The Economist said. ''Its house prices rose faster than Britain's or America's (although Ireland's outstripped them all) and its current-account deficit gaped wider for longer. But its economy proved strong-livered. ''House prices fell from March 2008 to March 2009 (as measured by the weighted average of the eight state capitals), then resumed their rise. In the year to the first quarter of 2010, they jumped by 18.8 per cent!''

The Economist suggests the best way to limit the damage from a property bust is for regulators to exercise direct control over the amount of debt available to property owners and developers.
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imcrookonit
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Re: Australian House Prices, Most Overvalued In World.
Reply #1 - Mar 5th, 2011 at 6:36am
 
Well there you have it.  Australia has the most overvalued house prices, in the world.   Sad
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billy the fish
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Re: Australian House Prices, Most Overvalued In World.
Reply #2 - Mar 5th, 2011 at 6:57am
 
not to mention new cars ect ect
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Ex Dame Pansi
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Re: Australian House Prices, Most Overvalued In World.
Reply #3 - Mar 5th, 2011 at 7:17am
 
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?
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"When the power of love overcomes the love of power, the world will know peace." Hendrix
andrei said: Great isn't it? Seeing boatloads of what is nothing more than human garbage turn up.....
 
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cods
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Re: Australian House Prices, Most Overvalued In World.
Reply #4 - Mar 5th, 2011 at 7:48am
 
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?



I think we can blame rudd and gillard for some of that with their first home buyers bonus of $21000...it sure escalated the price of new homes for a few months.. trouble is when its stopped so does the market for new homes.. and the price of established homes goes up.because of a shortage.. there seems to be no balance.. its all or its nothing with this govt.
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bridonta
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Re: Australian House Prices, Most Overvalued In World.
Reply #5 - Mar 5th, 2011 at 9:21am
 
great new .. Howard, Rudd, Juliar .. and those developer and real estate parasites .. are so happy .. as their plans have been working well since the FHOG was introduced ..
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Sir lastnail
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Re: Australian House Prices, Most Overvalued In World.
Reply #6 - Mar 5th, 2011 at 11:45am
 
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?


Chairman Dudd let in lots of chinese dudes who have access to cheap loans and who are fueling the bubble and keeping house prices artificially high !! That's all there is to it !!
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Sir lastnail
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Re: Australian House Prices, Most Overvalued In World.
Reply #7 - Mar 5th, 2011 at 11:48am
 
cods wrote on Mar 5th, 2011 at 7:48am:
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?



I think we can blame rudd and gillard for some of that with their first home buyers bonus of $21000...it sure escalated the price of new homes for a few months.. trouble is when its stopped so does the market for new homes.. and the price of established homes goes up.because of a shortage.. there seems to be no balance.. its all or its nothing with this govt.


now the chinese have taken over with access to cheap loans they are willing to outbid the locals Sad Dudd was responsible for this as well when he fiddled with the FIRB rules Sad
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« Last Edit: Mar 5th, 2011 at 12:00pm by Sir lastnail »  

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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bridonta
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Re: Australian House Prices, Most Overvalued In World.
Reply #8 - Mar 5th, 2011 at 12:00pm
 
yes and they want to fight inflation by raising up interest rates ..?? how business people suppose to buy a house if lowering their prices on all consumer products ?? how workers suppose to buy house with basic low wages .. ?? if the house prices kept on inflating by those incompetent politician ... look like overall are not balancing .. and still don't know what they are running to .. all will be taken by foreigners ..
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Sir lastnail
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Re: Australian House Prices, Most Overvalued In World.
Reply #9 - Mar 5th, 2011 at 12:01pm
 
bridonta wrote on Mar 5th, 2011 at 12:00pm:
yes and they want to fight inflation by raising up interest rates ..?? how business people suppose to buy a house if lowering their prices on all consumer products ?? how workers suppose to buy house with basic low wages .. ?? if the house prices kept on inflating by those incompetent politician ... look like overall are not balancing .. and still don't know what they are running to .. all will be taken by foreigners ..


they are just trying to keep a floor under house prices at any expense until they can get voted back in again Wink
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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bridonta
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Re: Australian House Prices, Most Overvalued In World.
Reply #10 - Mar 5th, 2011 at 1:05pm
 
Sir lastnail wrote on Mar 5th, 2011 at 12:01pm:
bridonta wrote on Mar 5th, 2011 at 12:00pm:
yes and they want to fight inflation by raising up interest rates ..?? how business people suppose to buy a house if lowering their prices on all consumer products ?? how workers suppose to buy house with basic low wages .. ?? if the house prices kept on inflating by those incompetent politician ... look like overall are not balancing .. and still don't know what they are running to .. all will be taken by foreigners ..


they are just trying to keep a floor under house prices at any expense until they can get voted back in again Wink


yes they will trying everything to keep house prices from falling .. by importing cheap labour or food "made in China"
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billy the fish
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Re: Australian House Prices, Most Overvalued In World.
Reply #11 - Mar 6th, 2011 at 7:07am
 
Sir lastnail wrote on Mar 5th, 2011 at 11:45am:
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?


Chairman Dudd let in lots of chinese dudes who have access to cheap loans and who are fueling the bubble and keeping house prices artificially high !! That's all there is to it !!

Shocked
this may not be relevant but on TV the other night they showed a scan of the crowd watching the gay mardi gra and it was 90% asian
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Sir lastnail
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Re: Australian House Prices, Most Overvalued In World.
Reply #12 - Mar 6th, 2011 at 11:08am
 
billy the fish wrote on Mar 6th, 2011 at 7:07am:
Sir lastnail wrote on Mar 5th, 2011 at 11:45am:
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?


Chairman Dudd let in lots of chinese dudes who have access to cheap loans and who are fueling the bubble and keeping house prices artificially high !! That's all there is to it !!

Shocked
this may not be relevant but on TV the other night they showed a scan of the crowd watching the gay mardi gra and it was 90% asian


Pauline Hanson was right and they tried to shut her up by putting her in jail Sad They should have put the polies in jail for allowing this to happen Sad Kevin Duff should be in jail for sure !!
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Equitist
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Re: Australian House Prices, Most Overvalued In World.
Reply #13 - Mar 6th, 2011 at 12:24pm
 


billy the fish wrote on Mar 6th, 2011 at 7:07am:
Sir lastnail wrote on Mar 5th, 2011 at 11:45am:
Ex Dame Pansi wrote on Mar 5th, 2011 at 7:17am:
Of course they are, it's Australia, not the French Riviera.

A place that has little significance on a world scale, yet our house prices are one of the highest in the world.

What have we got here that I don't know about?


Chairman Dudd let in lots of chinese dudes who have access to cheap loans and who are fueling the bubble and keeping house prices artificially high !! That's all there is to it !!

Shocked
this may not be relevant but on TV the other night they showed a scan of the crowd watching the gay mardi gra and it was 90% asian




I think you will find that the composition of the crowd reflected both the demographics of the local participants and the international tourists staying in the city that night...

If anything, this is an indication of the value of the international tourism dollar in capital cities...



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Lamenting the shift in the Australian psyche, away from the egalitarian ideal of the fair-go - and the rise of short-sighted pollies, who worship the 'Growth Fairy' and seek to divide and conquer!
 
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what_next
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Re: Australian House Prices, Most Overvalued In World.
Reply #14 - Mar 20th, 2011 at 5:40pm
 
Queensland is pushing to abolish sales tax on property. Is this a vested interest or an invested interest to keep the property market artificially inflated. They will go to any length to protect their own investments. One could almost call it a conflict of interest, after all a politician cannot vote on a matter if they have an interest in the company.

Queensland Premier Anna Bligh spends $1.2 million on investment units after election win

ANNA Bligh celebrated her last election victory with a $1.2 million plunge into the property market in the middle of the global financial crisis.

But the Queensland Premier insists she can't remember whether she lodged the bids for two high-rise apartments before or after her election win and guaranteed pay cheque for the next three years.

Property records show Ms Bligh and her bureaucrat husband Greg Withers paid $565,000 for a two-bedroom apartment and $609,000 for a three-bedroom unit in the same building in her South Brisbane electorate.

Property records put the sale date at March 30 and April 1, 2009 just after the March 21 poll but Ms Bligh yesterday said she could not remember the exact date of her bids.

The shopping spree has emerged after Foreign Minister Kevin Rudd and his millionaire wife Therese Rein's $3 million purchase of a Sunshine Coast weekender.

While former premier Peter Beattie had a frugal investment approach, Ms Bligh has commitments to four mortgages with the Commonwealth Bank, including her nearby family home bought for $290,000 in 1997 and another home nearby where her mother lives bought for $165,000 in 1995.

Ms Bligh had asked for $530 a week rent initially on the three-bedroom home, but then advertised the property as low as $490 a week. The two-bedroom was slashed from $430 a week to $360 a week.

http://www.couriermail.com.au/news/queensland/queensland-premier-anna-bligh-spends-12-million-on-investment-units-after-election-win/story-e6freoof-1226024708444
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