Linking ≠ endorsement. Enjoy and share:
- Real estate in Sydney: the big foreign buy-up
… customers are buying apartments off the plan, the kind of high-rise units they are familiar with at home, from Green Square to Chatswood, Burwood to Mosman, Melbourne to the Gold Coast, and Adelaide to Perth.
But how nice is it really for Australia?
Barnaby Joyce, the new federal Agriculture Minister, and his National Party colleagues fret about Australia selling off the farm, whether it be Cubbie Station to a Chinese consortium or the proposed dispatching of Graincorp to an American conglomerate.
Australia is not so much selling the farm as it is selling big slabs of its cities, brick by brick.
Is the rush of foreign investors fuelling the risk of a property price bubble? Or if there is no bubble – as the Reserve Bank, most of the property industry and the big banks counsel – are the foreign buyers simply squeezing out first home buyers and the less well off?
David Milton, says … the vast majority of its Chinese buyers already live in Australia.
It appears the term “foreigner” isn’t being defined the same way by everyone.
The real question appears to be whether the money is leaving the country, whether sales profits from appreciated real-estate salse will remain in Australia or go to China or elsewhere.
Of course, having young Australians squeezed out by true foreigners buying into a bubble is a concerning if that’s indeed what’s happening.
- Why the UK housing market is ‘two-speed’
Ray Boulger, senior technical manager at John Charcol and Grainne Gilmore, head of U.K. residential research at Knight Frank, [and others] comment on the “divergent” U.K. housing market and the impact of the Help to Buy scheme on mortgage rates.
- Canadian housing market expected to stay on hot streak – The Globe and Mail
Canada’s housing market is back on a roll, a finding that should be evident in the September sales data that the Canadian Real Estate Association will release on Tuesday.
The slump that began in the summer of 2012 came to an end this past summer, with sales topping economists’ forecasts, and the market showing a surprising amount of momentum.
- Is Britain heading for another housing bubble? | Business | The Guardian
In London as a whole, surprising as it may seem, typical property values have now reached 8% above their 2007 peak. …
Most analysts see central London’s already sky-high prices moving inexorably higher. “If London is going to continue to grow as a global city and supply is not increased, then prices will go up,” Bailey says. “More demand will mean higher prices.” So since the estate agents’ traditional adage is that whatever direction prices head in prime central London, they will eventually follow — with varying degrees of lag — in outer London too, then in the home counties, and finally in the rest of the country, are we heading for yet another bubble?
… In August, the Royal Institution of Chartered Surveyors (Rics) said prices were rising at their fastest rate since the market peak of November 2006.
… many fear that with mortgage approvals already rising and interest rates set to stay low for some time, Help to Buy — which enables people to buy a home for up to £600,000 on a deposit of only 5%, with the government providing a guarantee to the lender of up to 15% of the loan — could be the spark that ignites another full-blown British housing bubble.
David Cameron insists the scheme is necessary to help young people who can afford “sensible” mortgages but not 25% deposits get onto the property ladder. But it has been criticised as “reckless”, “mad” and even “dangerous” by economists and bodies as varied as the International Monetary Fund, the Institute of Directors, the Adam Smith Institute, the Office for Budget Responsibility and the Treasury select committee.
… In the 1970s, Britain regularly built 300,000 new homes a year — over that decade, housebuilding outpaced population growth sixfold, the Economist notes. In the past decade, however, “only half as many homes have been built as people added”. Right now, we should be building a quarter of a million new homes every year; in 2011 we managed 145,000.
A lack of construction appears to be among the main problems. This is not the first article to which we’ve linked that mentioned that.
- European prime property rents to increase in 2014. Jones Lang Lasalle
… the Jones Lang LaSalle forecast for European Prime Property has been revised upwards for the first time in almost two years.