Hotspotting Podcast | Episode 68 - Here's The Good News

Posted on 6/11/2018  
Hotspotting Podcast | Episode 68 - Here's The Good News

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There’s a yawning gap between what’s really going on in real estate markets – on the one hand - and the portrayal of markets by mainstream media – on the other.

Journalists are having a feeding frenzy with negative data and dire forecasts – and are showing a disregard for normal ethical standards, such as accuracy, balance and fairness.

The headlines tell us that what they term “Australian property prices” are falling and that markets everywhere are crashing, but the truth is starkly different.

There are many positive, forward-looking events happening in residential real estate at the moment, which mainstream media is largely ignoring:-

  •  housing affordability has improved in the biggest cities
  • first-home buyers are more prominent than at any time in the past eight years, with a 30% increase in loans to first-time buyers in the past 12 months
  •  land prices have risen in most capital cities, headed by a 30%-plus increase in the median lot price in Melbourne
  •  analysis by CoreLogic shows that half of sub-regions of Australia (the ABS divides Australia into 88 sub-regions for collection of data of all sorts) have recorded price growth in the past year, including 40% of the capital city sub-regions and 60% of those in regional Australia.

Hotspotting research notes that, while there’s no doubt Sydney and Melbourne overall have passed their peaks, prices remain strong in the cheaper areas. This is particularly so in the outer ring areas of Melbourne. Many suburbs have recorded double-digit price growth in the past year and also significant prices rises in the most recent quarter, which means prices are still rising.

Analysis by Domain shows that there are around 100 Sydney suburbs where prices are still rising. The general message for Sydney and Melbourne is that the top end suburbs are recording price decline (most, but not all of them), the middle market is holding steady on prices and the cheaper areas are still recording price rises.

Beyond the two biggest cities, Hobart’s market is still going ballistic and Canberra is also showing solid growth.

But the biggest growth markets are occurring in regional Australia. More on that in a future broadcast.

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