Sydney Property Bubble

[greengiraffe]

• Nov 10 2015 at 5:30 PM 
  

Greenland confident about Omnia's views and precinct revitalisation

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NaN of
[img=620x0]http://www.afr.com/content/dam/images/g/k/k/k/s/k/image.related.afrArticleLead.620x350.gkv4ro.png/1447145620224.jpg[/img]Artist's impression of Omnia development at Kings Cross.
[Image: 1435810439847.png]

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by Robert Harley
Leading Chinese developer, Greenland, is not worried about the slowdown in Sydney housing.
Greenland Australia's managing director, Sherwood Luo, said at the launch of the group's latest Sydney project, the $300 million Omnia at Kings Cross, that Australia was a key market internationally for which the company had "long-term aspirations".
"The demand is still strong [in Sydney] and I believe in the short term the supply cannot meet the demand, especially for core suburbs with convenient transport and facilities" he said.
Greenland will test the theory with the 135 apartments in Omnia. "This particular area of Potts Point" had a shortage of supply, Mr Luo said. He stressed that the project would offer some of the best views in the city and revitalise the precinct.

Prices are not yet set but, through CBRE Residential Projects, are expected to range from about $18,000 to $25,000 a square metre. 
One-bedroom apartments will start at $750,000, two-bedroom units at $1.4 million, and three-bedroom units with car parking from $2.5 million. The top of the building will include four penthouses priced from about $6 million.
PRIME POSITION
Mr Luo said Omnia will be recreated from a 240-room hotel on the corner of Darlinghurst and Victoria roads – a prime corner position described by architect David Jaggers of Durbach Block Jaggers, as similar to the Flatiron Building in New York.


The DBJ design, which has a hint of a waist, allows for many apartments to have two levels and open to both east and west facades, providing flow-through ventilation and views of the CBD skyline to the Sydney Harbour Bridge to the west and the broader harbour to the east. 
SJB Interiors director, Kirsten Stanisich, said the interiors would be "elegant and subtle" to reflect the Potts Point character.
The two lower levels of the project are planned for "designer boutiques, gourmet retailers, and a top-tier restaurant," as well as a Woolworths supermarket on the second floor.
Greenland is developing 1200 apartments in Sydney – in the CBD, Leichhardt, North Sydney, and Kings Cross. With one Melbourne project, the development pipeline tops $2 billion.

[greengiraffe]

I think everyone seems to be overwhelmed by Singapore's busted property bubble...

I personally think that a correction to a normalising trend is inevitable... always bear in mind that home ownership Down Under is so so different... its probably another day for many...

As for Perth... busted is an exaggeration...

Land values remains sky high as the size has been seriously shrunk in various areas which my mates are tracking for the similar pricing...

No worries just get on with life...

No Vested Interests
GG

No vested interest meh? u seem to post a lot of aussie update and news leh, almost everyday. also ur vested fcl and St****** are pretty much aussie related business.

But its understandable to want to hype stuff one is vested in on the forums.


Newbie11, auction clearance in sydney and melbs are a guide for the how hot the market is. Unlike other city, auctions there are used to get the highest price for property when buyers are excited. So auction shows basically the buyer sentiment in those 2 big cities.
sent from my Galaxy Tab S

I think you may refer to the professionals that are running a Multi-National REAL Estate platform for their comments to infer about reality and "hype"...

As Usual YMMV

http://www.straitstimes.com/business/pro...s-overseas

FCL completed the integration of Australand in October last year and it was rebranded as Frasers Property Australia (FPA) in August.
FPA launched a new retail business unit last month. While it had previously sold off retail elements in its mixed developments, FCL's retail expertise now means it could retain these or build them bigger - and even inject them into Frasers Centrepoint Trust some time later.
FPA is jointly developing Central Park in Sydney with Sekisui House Australia. FPA is also planning a 400,000 sq ft mall as part of an upcoming mixed-use project in Edmondson Park, Sydney.
Fundamentals in Sydney remain strong despite news reports that foreign buyers are pushing up prices, added Mr Lim. But foreign buyers form a limited portion of demand, and made up about 17 per cent of FPA's homebuyers last year.
Improved margins in Australia should flow through the books in the 2016 financial year, said FPA chief executive Rod Fehring.

[CityFarmer]

I think everyone seems to be overwhelmed by Singapore's busted property bubble...

I personally think that a correction to a normalising trend is inevitable... always bear in mind that home ownership Down Under is so so different... its probably another day for many...

As for Perth... busted is an exaggeration...

Land values remains sky high as the size has been seriously shrunk in various areas which my mates are tracking for the similar pricing...

No worries just get on with life...

No Vested Interests
GG

No vested interest meh? u seem to post a lot of aussie update and news leh, almost everyday. also ur vested fcl and St****** are pretty much aussie related business.

But its understandable to want to hype stuff one is vested in on the forums.


Newbie11, auction clearance in sydney and melbs are a guide for the how hot the market is. Unlike other city, auctions there are used to get the highest price for property when buyers are excited. So auction shows basically the buyer sentiment in those 2 big cities.
sent from my Galaxy Tab S

Apart from my core positions, I don't have vested interests.

I read Australian papers on top of Singapore papers simply because Australia is a much bigger economy than Singapore and the journalism Down Under is much better than that of Singapore...

I don't hype. I have already crossed that treshold. $ is no longer than important to me as I merely view what I m passionate in as a game. Its a very simple game... just work hard and I always tell those who knows me... its not IF but WHEN.

I have been out of my broking game come close to 1 decade but I do have my following. My clients and those that are in close contact with me still appreciate me for who I am.

These days, I basically find out who the CON men are as there are seriously very few real businesses and businessmen. Once I narrow the focus, there is only these little that I can focus on.

FCL and St****** are the few businesses that fit my criteria.

Buddy, this investment game is seriously just a game. $ is important but what is more important is your ability to use $ not to hoard it.

To me, these forum is about WIN-WIN, not win-lose.

Over time, a real mileage horse will be discovered.

Still Not Vested
GG

GG has confirmed on his vested interest. I reckon BK has no position to doubt it further unless further evidence presented, otherwise it will become a provocative act.

Investing needs a lot of time and effort. Let's use the valuable time/effort to gain from the market. It is a more tangible and fruitful option. Isn't it buddies?

Regards
Moderator CF

[greengiraffe]

I think everyone seems to be overwhelmed by Singapore's busted property bubble...

I personally think that a correction to a normalising trend is inevitable... always bear in mind that home ownership Down Under is so so different... its probably another day for many...

As for Perth... busted is an exaggeration...

Land values remains sky high as the size has been seriously shrunk in various areas which my mates are tracking for the similar pricing...

No worries just get on with life...

No Vested Interests
GG

No vested interest meh? u seem to post a lot of aussie update and news leh, almost everyday. also ur vested fcl and St****** are pretty much aussie related business.

But its understandable to want to hype stuff one is vested in on the forums.


Newbie11, auction clearance in sydney and melbs are a guide for the how hot the market is. Unlike other city, auctions there are used to get the highest price for property when buyers are excited. So auction shows basically the buyer sentiment in those 2 big cities.
sent from my Galaxy Tab S

Apart from my core positions, I don't have vested interests.

I read Australian papers on top of Singapore papers simply because Australia is a much bigger economy than Singapore and the journalism Down Under is much better than that of Singapore...

I don't hype. I have already crossed that treshold. $ is no longer than important to me as I merely view what I m passionate in as a game. Its a very simple game... just work hard and I always tell those who knows me... its not IF but WHEN.

I have been out of my broking game come close to 1 decade but I do have my following. My clients and those that are in close contact with me still appreciate me for who I am.

These days, I basically find out who the CON men are as there are seriously very few real businesses and businessmen. Once I narrow the focus, there is only these little that I can focus on.

FCL and St****** are the few businesses that fit my criteria.

Buddy, this investment game is seriously just a game. $ is important but what is more important is your ability to use $ not to hoard it.

To me, these forum is about WIN-WIN, not win-lose.

Over time, a real mileage horse will be discovered.

Still Not Vested
GG

GG has confirmed on his vested interest. I reckon BK has no position to doubt it further unless further evidence presented, otherwise it will become a provocative act.

Investing needs a lot of time and effort. Let's use the valuable time/effort to gain from the market. It is a more tangible and fruitful option. Isn't it buddies?

Regards
Moderator CF

Hi CF,

Thank you for understanding my position. I will keep striving to provide more infomation for many hardworking buddies who are interested in.

Cheers
GG

[newbie11]

Totally appreciated your contribution GG!

Sent from my SM-N910G using Tapatalk

[greengiraffe]

• Nov 26 2015 at 9:43 AM 
   
  

Sydney's top 25pc of homes perform best - for now

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[img=620x0]http://www.afr.com/content/dam/images/g/l/0/v/j/0/image.related.afrArticleLead.620x350.gl82hd.png/1448491437584.jpg[/img]Didn't pull the $20 million the vendor wanted: 9 Hillside Avenue in Sydney's Vaucluse sold for under $18 million.
[Image: 1426320577108.png]

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by Michael Bleby
Sydney's most expensive homes have risen the most in price over the past 12 months, but that is unlikely to last, with falling clearance rates a sign of waning demand, even at the top end.
Over the past year, Sydney homes in the top quartile by price – those above $1.19 million – have gained 17.1 per cent, according to CoreLogic RP Data figures. That compares to a 14.3 per cent rise for homes in the lower quartile by price and14.8 per cent of homes in the mid-price band. 
The past six months have seen a similar pattern.
But the slowdown that last week put Sydney's preliminary auction clearance rate at 59.3 per cent – its lowest since February 2013 – is biting into the top end of the market too. 
[img=620x0]http://www.afr.com/content/dam/images/g/l/8/4/b/u/image.imgtype.afrArticleInline.620x0.png/1448437515471.png[/img]
"There's a group of people with a lot of money buying but I don't think it's going to be sustained through next year," said Craig Marshall, the North Shore-based director of Savills Residential. "For the last two weeks, I've been focussing on Kuringgai. Last Saturday, of the properties booked in for auction that day, only 38 per cent sold under the hammer."
Even the very top end is slowing. Dentist and property investor Le Tran sold his six-bedroom mansion in the eastern suburb of Vaucluse earlier this month for between $16.5 and $18 million after listing the home in March with initial hopes of a $20 million sale. 

There will be no collapse in prices, but a slowdown is necessary, Mr Marshall said. 
"You can't have more than two years of growth," he said. "Some places have doubled in price. It's got to pull back."
Optimism remains strong. A rundown three-bedroom house in Darlinghurst – with no kitchen and only a tap – has been put on the market for the first time in 75 years with price expectations of $1.2 million. 
[img=620x0]http://www.afr.com/content/dam/images/g/l/6/l/x/q/image.imgtype.afrArticleInline.620x0.png/1448336866678.jpg[/img]Needs a bit of work: But this house, at 135 Barcom Avenue, Darlinghurst, is still likely to go for $1.2 million.Domain.com.au

While activity is always driven at the top end of the market at this time of year as people change jobs and schools ahead of the coming year, the relative over-performance of higher-priced dwellings is likely to subside, Mr Marshall said. 
Over the past five years, medium- and lower-priced homes have risen faster in price than higher-priced ones, the CoreLogic figures show. Over that time, homes in the mid-range have risen the most, showing a 49 per cent gain.

[greengiraffe]

• Nov 30 2015 at 10:34 AM 
   
  

How it sold: 'Worst house on best street' goes for $305K over reserve

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[img=620x0]http://www.afr.com/content/dam/images/g/l/b/3/u/r/image.related.afrArticleLead.620x350.glb3ou.png/1448840048229.jpg[/img]Diversionary tactics didn't put off the bidders for 14 Consett Avenue Bondi Beach Supplied
[Image: 1426320577108.png]

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by Michael Bleby
The Australian Financial Review has spoken to the team behind the weekend's most intriguing home sale for our new weekly column,How it sold.
The Property: A four-bedroom, one-bathroom house at 14 Consett Avenue, just 400m from Bondi Beach. On the market for the first time in 70 years. 
Who was the agent/agency? Daniel Gillespie, Belle Property Bondi Junction. Auctioned by Damien Cooley of Cooley Auctions.
How long was this on the market? 28 days

Why did this one sell? [Damien]: This is a great example of the worst house in the best street. Consett Ave is less than 400m to the prestige shores of world-famous Bondi Beach and footsteps from some of the best eateries in Sydney. Sydney-siders have long been in love with the romance of renovating and that is exactly what this wreck of a house needed. [Daniel]: It had been rented for 70 years and it hadn't been worked on for 70 years, either. It smelt like an old Bondi Beach house. That said, it was sturdy - all double-brick on sandstone, so it's pretty dry.
Was it overpriced? [Damien]: I don't believe you can ever pay too much in this location because it's a beautiful tree lined street in one of the best suburbs on the planet and will always appreciate in value.
What did you think it would go for? The owners set a reserve of $2.1m and I thought that was a fair indication.
What was surprising about it? You always know when you've got an auction on your hands when someone tries to make a statement or ask a question in an attempt to put other purchasers off bidding. One registered bidder tried to make a scene over the land tax not being adjusted but we quickly dismissed the statement and received an opening bid of $1.5m. In a fast paced, high-energy auction we received 30 bids from 8 registered bidders and it sold for $2,405,000 - $305,000 over reserve. Clearly the land tax wasn't an issue for the prospective bidder as they ended up being the under bidder at $2.4m. 


Do you reckon we'll see another result like this a) next week b) next year c) next cycle d) never:
b) next year - good property, be it new or old, will sell well in any market conditions. 
I would recommend this property for: [Damien]: A young family with an eye for renovation. [Daniel]: The site's ready for a new building.

[fundamentalman]

Sydney Home Prices Drop Most in 5 Years as Regulation Bites
Narayanan Somasundaram
sonarayanan
November 30, 2015 — 3:00 PM PST Updated on November 30, 2015 — 8:03 PM PST
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Residential Properties As Sydney Stretched Housing Affordability Worsens
A residential apartment building stands in the suburb of Epping in Sydney. Photographer: Brendon Thorne/Bloomberg



Nobody's Home: Australian Boom Leaves Swath of Empty Properties
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Former BP CEO on the Future of Oil
Values in Sydney fell 1.4% in November, first drop since May
Home-price drop gives RBA room to cut rates, CoreLogic says
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Sydney home prices fell the most in five years in November as a regulatory crackdown forces banks to tighten lending and increase mortgage rates.
Dwelling values in Australia’s largest city dropped 1.4 percent from a month earlier, data from property researcher CoreLogic Inc. showed on Tuesday. That was the biggest drop since December 2010 and the first decline since May. Prices across the nation’s capital cities declined 1.5 percent, with Melbourne leading with a 3.5 percent decrease.
“The fact that mortgage rates have risen independently of the cash rate has, in all likelihood, become a contributor to the slowdown in housing market conditions,” Tim Lawless, head of research at the firm, said in an e-mailed statement. “Tighter mortgage servicing criteria across the board and affordability constraints in the Sydney and Melbourne markets are also having an impact on market demand.”
The drop in home prices is yet another indicator of the cooling Sydney property market after mortgage rates close to five-decade lows and buying by foreigners sent prices up 44 percent in the past three years. Sydney auction clearance rates, a measure of demand, have dropped for nine consecutive weeks and loans to investors climbed at the slowest pace in 14 months as banks raised interest rates to protect themselves from the risks of an overheated market.

Buyers are hesitating after the price rise hurt affordability, and a regulatory clampdown prompted banks to raise rates for owner-occupiers for the first time in five years. Economists from Macquarie Group Ltd. to Bank of America Merrill Lynch forecast a decline in prices over the next two years. Values in New South Wales state, where Sydney is the capital, are expected to climb 2.2 percent in 2016, a survey by National Australia Bank Ltd. showed Monday.
“Supervisory measures are helping to contain risks that may arise from the housing market,” the Reserve Bank of Australia said Tuesday as it left its benchmark cash rate at a record-low 2 percent. “The pace of growth in dwelling prices has moderated in Melbourne and Sydney over recent months.”
Still, Sydney home prices are up 12.8 percent in the past 12 months and Australia & New Zealand Banking Group Ltd. said in a note Monday “strong underlying demand” is likely to contain any price declines in the major capital cities to less that 10 percent in the absence of an economic downturn. On Saturday, 106 of 111 yet-to-be-built apartments worth about A$160 million ($116 million) in Chatswood, 10 kilometers (6.2 miles) north of Sydney’s business district, were sold in three hours, according to Domain, an online real estate website.
The central bank, which last year called the housing market unbalanced, said in October it could be starting to slow, while rapid home construction in some areas is creating an oversupply. The number of dwellings approved for construction rose 3.9 percent in October from the previous month, according to the Australian Bureau of Statistics, beating the median forecast of a 2.5 percent fall from a survey of economists.
The banking regulator urged lenders in December last year to limit growth in investor mortgages to 10 percent a year. This year, it raised the capital the biggest lenders must hold against home loans.
Successful auctions in Sydney fell to 56.3 percent, a three-year low, separate CoreLogic data showed Monday. A third of homes in the city were sold through an auction in the 12 months to Sept. 30, according to Corelogic.

RBA Room
The decrease in prices would give the RBA room to drop rates, Lawless said. RBA Governor Glenn Stevens said last week traders should “chill out” until February when policy makers will look at data again to decide on rates.
“While the Reserve Bank is likely to welcome a slowdown in the rate of home value appreciation, the overriding objective would be to avoid a significant downturn in the housing market, which would act as a weight on economic growth and potentially impact financial system stability,” Lawless said.