Terry’s View

There’s a yawning gap between what’s really going on in real estate markets and the portrayal of markets by mainstream media. 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 “Australian property prices” are falling and that markets everywhere are crashing, but the truth is starkly different. The articles featured in this edition of Newslink provide a more realistic outlook: housing affordability has improved in the biggest cities, first-home buyers are more prominent than at any time in the past eight years, land prices have risen in most capital cities

– and half of sub-regions of Australia 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. My best advice to consumers seeking to be informed about real estate is this: stop reading newspapers!

Values Rising In Half The Nation

Half of Australia has recorded a rise in dwelling values over the past year, new analysis shows, contrary to frequent headlines claiming prices are falling across the nation.

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Affordability Improves In Major Cities

Housing affordability has improved in many of the major markets across

Australia. The HIA Affordability Index for Australia for the September Quarter was 1.5% better than in the previous quarter and a 2.2% improvement on the same time last year.

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Melbourne Leads Land Price Rises

A new report has found the average price of land in capital cities has risen 15.5% in the past 12 months, led by a major increase in Melbourne.

The price of capital city vacant residential land grew three times as fast as blocks in regional areas, according to the latest national land report, although the growth has not been evenly spread in the capital cities.

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Australia Leads World On Wealth

The typical Australian is richer than the typical person in any other country in the world, according to a new survey. Australia has seized from Switzerland the global title of having the highest “median wealth per adult”, in Credit Suisse’s 2018 Global Wealth Report. Not only are Australians relatively rich by global standards, our wealth is more evenly distributed across the population than many other countries, the report finds.

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25% Rent And Most Enjoy It

One in every four Australian households rents, and it’s not just those on low incomes.

A new national survey of renters, funded by the Bankwest Curtin Economics Centre, finds that while 60% of renting households have a household incomes below $78,000, 30% are on incomes of more than $100,000. Although many households on low incomes and those headed by single parents are undoubtedly struggling to meet rental costs, those on moderate or higher incomes are generally positive about the experience.

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ALP Policy Will Cut Building: Report

Labor’s policies on negative gearing and capital gains tax will not increase the supply of new housing or create new jobs in the building industry, according to new independent economic modelling by Cadence Economics. Its report says that if Labor’s policies are implemented it will mean:

  • Up to 42,000 fewer new dwellings being built across the country.
  • Up to 32,000 fewer full-time jobs.
  • Up to $11.8 billion less building activity.
  • Up to $210 million less renovation building activity.

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