Society/Culture Australian Property Prices to Crash?

Remove this Banner Ad

Bombermania

Norm Smith Medallist
Dec 18, 2007
9,872
5,526
Counting premiership cups
AFL Club
Essendon
Other Teams
Non that play Essendon
You're comparing miners cottages to a quarter acre block suburb.

No sh*t you can't subdivide a miners cottage
Some people seem to think there were quarter acre blocks in those inner suburbs but there wasn't

There was in more middle class areas south and east of the Yarra and out Essendon way.
 

Scotland

TheBrownDog
May 5, 2006
58,673
63,609
AFL Club
West Coast
Yeah, it's called demand. House prices aren't set by anyone but the market.

We up immigration, immigrants want to live in CBDs. Let me take a wild guess and assume a lot of people who are pro immigration are also complaining about house prices.
'The market' is pretty sh*t. Hence the discussion.

The bolded is half the problem. Endless population growth is not sustainable.

The accepted norm of demand outstripping supply (at least perceived demand outstripping perceived supply) forever to the detriment of each generation that comes next is why people have the shits with the whole thing. People are pretty quick to say 'too bad that's how it's always been move on'. Even though it's not the way things have always been.

Like the prospect of living further away from a CBD is so depressing..

The mind boggles.
How many people commute to Melbourne from Sunbury? Gisborne? Woodend? Kyneton? Bendigo? That's basically what people advocate. Don't get me wrong I would rather move down South and live in a small town than commute an hour plus each way but the whole reason people congregate into cities is there is work and shared services etc.

People throw out daft statements like 'just move further out' without recognising that there is a practical limit to how far out you can actually go. Investment into decrentralising the cap cities, transport infrastructure etc. isn't there to support it. But really it's just another way of saying 'be born earlier' most of the time.
 

(Log in to remove this ad.)

CatFan79

Norm Smith Medallist
Sep 25, 2004
5,216
3,831
AFL Club
Geelong
I'd imagine most housing estates would be dishing out 1/8 acre blocks these days.
Most lots for free-standing homes are less than that now.

This is where new housing estates are going... Townhouse on about 250sqm lots. That's down here on the surf coast, I assume similar around Melbourne outskirts.
 

Lach72

Bam!
Sep 30, 2005
45,915
31,950
Perth
AFL Club
Fremantle
Other Teams
Freo and Bulldogs, ManU
I was looking at a reddit thread the other day where a house in Carnegie had been flipped for a 50% increase in 18 Months. (Approx 800k).

How is that sort of sh*t sustainable in any fashion?
 

yodellinhank

Brownlow Medallist
Oct 22, 2008
13,024
14,247
Geelong
AFL Club
Essendon
I was looking at a reddit thread the other day where a house in Carnegie had been flipped for a 50% increase in 18 Months. (Approx 800k).

How is that sort of sh*t sustainable in any fashion?
It isn't, and the people who bought it won't flip it again in 18 months time for a 50% increase. So stress less.
 

(Log in to remove this ad.)

Bombermania

Norm Smith Medallist
Dec 18, 2007
9,872
5,526
Counting premiership cups
AFL Club
Essendon
Other Teams
Non that play Essendon
I was looking at a reddit thread the other day where a house in Carnegie had been flipped for a 50% increase in 18 Months. (Approx 800k).

How is that sort of sh*t sustainable in any fashion?
Reddit is great for a laugh but not for serious research.

That story might be true but it could also be an agent or someone exaggerating a bit.
 

Chief

Overlord
Dec 1, 1999
95,587
73,192
Brisbane
AFL Club
Carlton
I was looking at a reddit thread the other day where a house in Carnegie had been flipped for a 50% increase in 18 Months. (Approx 800k).

How is that sort of sh*t sustainable in any fashion?
When I hear this stuff I keep going back to the money supply. There is twice as much money in the world today cf 12 months ago.

It doesn't sound anything like a normal time. Values of lots of things don't appear to be related to anything "real". Whatever real is.

Second hand car prices are up due to supply issues - apparently.

Crypto bubble.

Housing prices.

It's utterly odd.
 

Halloween Jack

All Australian
Aug 13, 2013
732
2,650
AFL Club
Essendon
I was looking at a reddit thread the other day where a house in Carnegie had been flipped for a 50% increase in 18 Months. (Approx 800k).

How is that sort of sh*t sustainable in any fashion?
was it renovated, subdivided or something? As I find that very heard to believe if not.
 

HirdsTheWord

πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†
Jun 19, 2014
7,265
7,867
AFL Club
Essendon

AMP and the ABS are now saying that investors are now starting to out number First Home Buyers in terms of % of loans taken out. IE More investors are buying properties than first home buyers are.

if this doesn't show you why investing capabilities need to be seriously reviewed than nothing will.
 
Last edited:

CatFan79

Norm Smith Medallist
Sep 25, 2004
5,216
3,831
AFL Club
Geelong
The developers make most of the decisions about what is built and how its built and landscaped.
They basically want to satisfy the market.. If people can't afford bigger blocks, they get smaller.

Less room for trees and shrubs though, and it sure makes these estates depressing.

Second hand car prices are up due to supply issues - apparently.
People in high numbers are using that equity in their homes to borrow more to buy cars, boats, caravans etc...

Those with few brain cells pulled their super out last year for the same reasons.
 

HirdsTheWord

πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†πŸ†
Jun 19, 2014
7,265
7,867
AFL Club
Essendon
They basically want to satisfy the market.. If people can't afford bigger blocks, they get smaller.

Less room for trees and shrubs though, and it sure makes these estates depressing.



People in high numbers are using that equity in their homes to borrow more to buy cars, boats, caravans etc...

Those with few brain cells pulled their super out last year for the same reasons.
That's not entirely true.

Developers rarely want to satisfy the market.......They want to Maximize their $/m2 return of which ends up in these types of blocks you are referring too.

The market does indeed often purchase them, but more so out of need rather than want. You can only afford wat you can afford.
 

Remove this Banner Ad

Remove this Banner Ad