I have a number of friends who are living in Australia since early 90s. They all say it’s about to blow.
Australian property is set to POP. Sell now, stick in the bank and then buy it back for half the price in three years. That’s what all the financially connected Irish did. Made the rich, richer.
WillChangeThisLater
Yeah, but people have been saying that for 8 years now. I’m not saying it won’t and in fact I’ve warned people about it here myself when they considered buying property that to me seemed overpriced, but in the meantime people have bought property at an already high price and been able to sell it a few years later for a big profit. We sold our place in 2012 thinking it wouldn’t go much higher but since then the value has increased by another 15%.
David McWilliams himself has predicted the Australian bubble bursting several times over the years (see this piece from 2012 when he said it would probably happen that year http://www.davidmcwilliams.ie/2012/01/11/tremors-from-australias-crash-will-reach-our-shores) and when it eventually does he can say ‘I told you so’ – it’s easy to see it will happen, and I think people recognise that risk but knowing when is a different story.
Kolmo
Yes, clearly nobody can foresee the overheating, rolling monster apocolypto-bubble coming on the horizon, just like the so-called regulators and willingly clueless government in Ireland before the arse fell out of our economy,
Formerly known as @ireland.com
I have been living in Australia, since Bob Hawke was PM. I read the McWilliams article. His appraisal of the Aussie economy and property bubble is pretty good. He is missing some of the key information. I have read Aussie news articles on the economy, stating that housing construction is the only part of the economy that is growing – does that sound familiar? The big thing he missed is that wealthy Chinese non-residents are purchasing a lot of property in Australia. This is driving up prices, inflating the bubble. It is making housing unaffordable for Australians and migrants. A house sold in my suburb for AU$2.040M, a few weeks ago. That is about $600,000 above my most optimistic estimate. Canada and Singapore has stopped non-residents from purchasing homes. Australian law limits it to new homes, but it is not enforced, or it is easy to get around. I think some of the buyers are Chinese people looking for a safe haven, away from the Chinese Government, more reliable than the share market.
We do keep hearing that Australia is different – does that sound familiar? I have been expecting the bubble to burst since 2008, but it hasn’t.
Them’s caraaazeee prices… what would they call an Autralian recession / crash I wonder…
Billaboom! …or something :)
Spaghetti Hoop
Interesting.
That’s when good neighbours become rich friends.
dhaughton99
Very good.
Murtles
Every since Bobbie Simpson was killed off in 1995, Home and Away has been dead to me. DEAD!!
Armitage Shanks
am i remembering correectly, but did Bobby somehow melt out of the fridge in some sort of trippy vision Ailsa was having at the time? or may i might have been tripping balls…..horrendous speedboat accident wasnt it, terrible, terrible stuff.
Gaius C
Perth is already deflating as the mining work dries up.
Vacancy rates are rocketing.
Re Chinese buyers in Sydney. Similar is happening in Auckland, New Zealand as well and on a much bigger and more international scale in London.
ahjayzis
I was working on a super-lux residential development in West London at the start of the year, joint venture between a developer here and a big Chinese wealth fund.
The marketing suite in Hong Kong is three times the size of the one in London, with five times the budget and more full-scale mockups of the flats. Emphasis was completely on selling to China.
It’s a complete bubble as well, since while the finishings and materials are top-notch, the flats are feckin’ tiny, we literally just about got away with getting certs based on size and aspect etc.
jeanclaudetrichet
DMcW: The man you obsessed about Breakfast rolls while Rome burned.
That’s not fare.
You’re right, it’s not food.
I have a number of friends who are living in Australia since early 90s. They all say it’s about to blow.
Australian property is set to POP. Sell now, stick in the bank and then buy it back for half the price in three years. That’s what all the financially connected Irish did. Made the rich, richer.
Yeah, but people have been saying that for 8 years now. I’m not saying it won’t and in fact I’ve warned people about it here myself when they considered buying property that to me seemed overpriced, but in the meantime people have bought property at an already high price and been able to sell it a few years later for a big profit. We sold our place in 2012 thinking it wouldn’t go much higher but since then the value has increased by another 15%.
David McWilliams himself has predicted the Australian bubble bursting several times over the years (see this piece from 2012 when he said it would probably happen that year http://www.davidmcwilliams.ie/2012/01/11/tremors-from-australias-crash-will-reach-our-shores) and when it eventually does he can say ‘I told you so’ – it’s easy to see it will happen, and I think people recognise that risk but knowing when is a different story.
Yes, clearly nobody can foresee the overheating, rolling monster apocolypto-bubble coming on the horizon, just like the so-called regulators and willingly clueless government in Ireland before the arse fell out of our economy,
I have been living in Australia, since Bob Hawke was PM. I read the McWilliams article. His appraisal of the Aussie economy and property bubble is pretty good. He is missing some of the key information. I have read Aussie news articles on the economy, stating that housing construction is the only part of the economy that is growing – does that sound familiar? The big thing he missed is that wealthy Chinese non-residents are purchasing a lot of property in Australia. This is driving up prices, inflating the bubble. It is making housing unaffordable for Australians and migrants. A house sold in my suburb for AU$2.040M, a few weeks ago. That is about $600,000 above my most optimistic estimate. Canada and Singapore has stopped non-residents from purchasing homes. Australian law limits it to new homes, but it is not enforced, or it is easy to get around. I think some of the buyers are Chinese people looking for a safe haven, away from the Chinese Government, more reliable than the share market.
We do keep hearing that Australia is different – does that sound familiar? I have been expecting the bubble to burst since 2008, but it hasn’t.
Them’s caraaazeee prices… what would they call an Autralian recession / crash I wonder…
Billaboom! …or something :)
Interesting.
That’s when good neighbours become rich friends.
Very good.
Every since Bobbie Simpson was killed off in 1995, Home and Away has been dead to me. DEAD!!
am i remembering correectly, but did Bobby somehow melt out of the fridge in some sort of trippy vision Ailsa was having at the time? or may i might have been tripping balls…..horrendous speedboat accident wasnt it, terrible, terrible stuff.
Perth is already deflating as the mining work dries up.
Vacancy rates are rocketing.
Re Chinese buyers in Sydney. Similar is happening in Auckland, New Zealand as well and on a much bigger and more international scale in London.
I was working on a super-lux residential development in West London at the start of the year, joint venture between a developer here and a big Chinese wealth fund.
The marketing suite in Hong Kong is three times the size of the one in London, with five times the budget and more full-scale mockups of the flats. Emphasis was completely on selling to China.
It’s a complete bubble as well, since while the finishings and materials are top-notch, the flats are feckin’ tiny, we literally just about got away with getting certs based on size and aspect etc.
DMcW: The man you obsessed about Breakfast rolls while Rome burned.