(19 days ago)
Investment in the Australian housing sector has become a frantic activity, and prices have soared.
This has been accompanied by a construction boom, particularly of large multi-family developments. But that construction boom is now creating a ballooning oversupply “up and down the East Coast of Australia,” warns Roger Montgomery, Chief Investment Officer of Montgomery Investment Management in Australia, in the short video below, “Property Implosion?”
In Brisbane, for example, vacancy rates have doubled, and it’s going to get much, much worse. Prices and rents will get hit as developers try to unload their apartments (condos) and as property investors will sit on vacant units.
The construction industry is already responding to the oversupply: Project approvals are plunging, which means that down the road, construction activity will be plunging. Alas, 12% of all jobs in Australia are in construction, and “some portion of that 12% will have to look for jobs elsewhere.”
Thanks for this post. I am in New south Wales. This price hike is not for every places in AUS. May be rates in Brisbane is higher but I'm not sure. But not is NSW.
NSW housing has gone up 3 times from the 90s. Now, when people in need really want to buy it, it is making it not possible for the non-mainlanders. Now, I am thinking of Melbourne, at least it is less expensive about 30% less than Sydney's houses, and my children can still study there as we are residents.
ABS published the unemployment data.
as of November we see
Employment increased 3,100 to 11,949,300.
Unemployment decreased 700 to 714,000.
Unemployment rate remained steady at 5.6%.