So, there are various parties that are lamenting the fact that Brisbane City Council has stopped the development of townhouses in areas zoned low density residential. Arguments around world’s best practice, affordability and product diversity are all valid to some extent, though there is a whole lot of grey that goes with it. Very little in planning and economics is black and white.
Read the Full ArticleWhilst all the talk has been around price and whether the bottom of the market has been reached or otherwise, it really is a moot point. The only thing price really does is impact someone’s on paper wealth and depending on where that price point actually sits compared to the point in time they bought the property; it becomes either the issue of the individual or the financier (sometimes both).
Read the Full ArticleCould it be that the saviour of the property market in Australia is actually Donald Trump? With all of the discussions around trade wars, currency manipulations, a falling Australian Dollar, historically low interest rates and a stock market that is being thrown around like a rag doll by international events may be the trigger investors need to get back into residential property. Certainly Gold, Silver and other precious metals are doing well under these circumstances, particularly as they have physical properties. With discussions around the residential market showing signs of reaching the bottom of the cycle, returns higher than bank interest rates, property may actually fall into one of the few asset classes that is demonstrating some form of stability. The RBA is certainly hoping this is the case, though confidence still has to come from the top and some support from media around the positives is always beneficial. Add in some firm international migration numbers, infrastructure spending and China looking to stimulate their own economy and Australia may just get through all of this turmoil. #buyers #residentialproperty #propertymarket #lowinterestrates
No one wants to be that guy, the glass half empty guy. But the calls of a recovery in the housing market may be somewhat premature, perhaps even wishful thinking.
Read the Full ArticleThe following is an article recently penned by Jorge Branco and published by Domain. It is one opinion and as a property economist, I sought to express my own in contrast to it. The article Jorge wrote is in italics, my comments are made in plain text.
Brisbane City Council is on a crusade to “protect the Brisbane backyard”. In those terms, the council’s bipartisan push to ban townhouses and apartments in low-density suburbs seems almost noble.
The simple reality is that Council is in fact protecting land uses that were designed for detached housing given the relaxation and often poor outcomes that occurred during the most recent investment cycle. Council is not banning apartments and townhouses, it is simply enforcing where they can and can’t go. Some might argue from a property economics perspective that this actually creates certainty in the market place. It protects the asset values of some housing, whilst also ensuring that affordability in those low density areas does not get inflated by developers that can pay more for a site than a Mum or dad purchaser, let alone a first home buyer. I suspect you will find that many suburbs actually have a mix of low density and higher density land uses throughout.
Read the Full ArticleSo, interest rates remain on hold by the RBA at 1.50%. With an inquiry into the financial sector, it would be a very brave bank that raised interest rates at the moment. What we are now seeing is APRA growing some teeth that is supporting the muscle it used to slow investment lending and a recognition that some practices were perhaps a little too easy for some borrowers to access loans.
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