SYDNEY house prices have shown growth in the three months to June since the global financial crisis struck in late 2007, figures show.
The value of the Sydney’s average home rose 3.7 per cent after five quarters in a row of flat prices, Australian Property Monitors said in a report to be published today.
The result supports other signs that low interest rates, the lowest in 40 years, and a shortage of homes could help Australia avoid house price falls of up to 20 per cent seen overseas.
And in a possible sign that growth in the market was spreading beyond government-backed first-home buyers, the top half of the market grew nearly twice as fast as the more affordable half.
Meanwhile, separate private-sector figures added to fears of a housing bubble fuelled by a shortage of new homes and apartments coming on to the market.
The property figures come after comments on Tuesday by the Reserve Bank governor, Glenn Stevens, that surging housing demand must be ‘‘translated into more dwellings, not just higher prices’’, which some economists saw as a warning of the next housing bubble.
But an economist with Australian Property Monitors, Matthew Bell, said the strength of the top end of the market showed growth in house prices was a well-rounded recovery, rather than a first-home buyer-fuelled boom.
‘‘When you’ve got the top end participating like that, it’s a good indication that you’re getting back to the levels we saw before prices fell heavily in 2008,’’ Mr Bell said.
After being pulled down by its large financial sector, Sydney was the fourth-fastest growing capital city after Darwin, Hobart and Melbourne. ‘‘Sydney and Melbourne have come back very strongly and really are leading the country, in terms of price rises.’’
The mining state capitals, Perth and Brisbane, are the only cities where house prices were lower than they were in June 2008.
Housing Industry Association figures, published yesterday, also pointed to a recovery in the property market but hinted at a looming supply shortage.
Detached home sales rose by 18 per cent in the past six months, the report said, but apartment sales had fallen by 20 per cent because developers struggled to access sufficient credit.
The chief economist at CommSec, Craig James, said: ‘‘While more first-home buyers are building their dream homes, investors and developers are either not interested or not able to participate in building new apartments’’.
Sourced from Sydney Morning Herald.
Published by Henry Sapiecha 10th August 2009
It was a curiosity thing for me, as well as an opportunity to do some research online to see what would come up. I was amazed at what I found. It gave me a real kick up the butt. Up until that point, I thought I was an action-taker. Unfortunately I was driving with the hand-brake on. It's funny how these old secrets come up all of the time and really shift your paradigm and get you going again. OK, let's get into it. This is a 161 year old secret that once you read this - it'll put "making money" into a whole new perspective. Success leaves clues, so I dug around and found the name, John Jacob Astor.
Interestingly enough, he was an American from German background. Astor got rich in the early 1800's trading furs, tea, silk and fine china. Principally a business person to start off with, but that was not where his real fortune was made. He invested his trading profits in something that would prove to be even better... Real estate. His most profitable investments were in New York City where he built a reputation known as the "Manhattan Landlord." Before he died, he left these powerful words. Astor said, "Could I begin life again knowing what I know and had money to invest, I would buy every foot of land on the island of Manhattan." Astor passed away in 1848 leaving $20,000,000.00 to his family. $20 million is a lot even today but converted @ todays values it would be around about... Wait for this... $458 BILLION. Now that's an insane amount of money. This brief story about a person you've probably never heard about has many powerful lessons, doesn't it? Let's go through them quickly... #1. Increase your cash flow
#2. Invest in real estate
...I did say quick and simple, it really comes down to just the above 2 things. The parting words of John Jacob Astor should be written up an posted somewhere where you can see it every day. Sure, Astor is talking about Manhattan, but don't let that limit you. Pick any major city around the world (even Australia) in that time frame and you'd see a similar story. This real estate thing isn't a fad or a passing-trend, you would want to live for as long as you can and see as many cycles as possible. The sooner you start, the better. NOTE> Imagine creating an empire that in 100 years time could be worth $1 billion... The legacy that you would leave for your family. Begin now. Sourced and published by Henry Sapiecha 21st August 2009
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