Hi Friends, Clients and Associates, The following article is for your empowerment, perusal and information
only:-
Australian house price down 2.1% over past year but still 36% overvalued:
The Economist magazine
By Larry Schlesinger
Monday, 20 August 2012
Australian house prices are slightly less overvalued than they were four
months ago but are still 36% above their fair value, according to The
Economist magazine In its August 2012 update of 21 residential-property markets around the
world, the Australian housing market ranked 13th with prices down 2.1%
year-on-year. In its previous update, The Economist reported Australian house prices as
38% overvalued. The Economist defines "fair value" as "the long-run average ratio of house
prices to disposable income and to rents". Australia is one of 12 housing markets, where prices are falling, says The
Economist with the best performing being market being Austria, with a 11%
year-on-year gain. However, the Australian market is not nearly as overvalued as Hong Kong (64%
above fair value), Singapore (58%) Canada (54%). Over the past five years, Australian house prices are up just under 10% -
modest in comparison to house price gains in Hong Kong (up 64%) and Austria
(23%) and below comparable markets like Canada (18%). The latest update shows Ireland to be the worst performing housing market of
the 21 with prices down 14.4% over the past year and nearly 50% over the
last five years. Spanish house prices decline 8.3% over the past year to July and are down
22.4% over the last five years. The Economist says that following years of "dizzying ascents, a big dose of
gravity has hit residential-property markets around the world". It says that many housing markets are returning "fair value" with eight
countries now around or below this mark. "But reaching this mark does not mean prices will stop falling. After
dropping by a third from their 2006 peak, prices in America now stand at 19%
below fair value," says The Economist. "The bottom of the market is close, however." It says that other markets like Ireland are "still in free fall". "Property prices in Ireland, at the foot of our table since April 2010,
continue to plummet. They have now halved in value, after a fivefold rise
between 1995 and their 2007 peak. It warns that the pace of house price decline in Spain quickened in the
second quarter of the year with the dire state of the Spanish economy
suggesting that "prices will keep diving". Prices in Britain fell by 0.7% in July to be down 10.2% over the past five
years.
Best regards
Linda J. Debello
L J Gilland Real Estate Pty Ltd
PO Box 19, Zillmere 4034.
Office:- 07 3263 6085
Mobile:- 0409995578 Confidential Email:- The information in this message is intended for the
recipient named on this email. If you are not that recipient, please do not
read, copy, distribute or act upon the message as the information it
contains may be priveleged. If you have received this message in error,
please notify us immediately by return email. Thank you for your
co-operation.
only:-
Australian house price down 2.1% over past year but still 36% overvalued:
The Economist magazine
By Larry Schlesinger
Monday, 20 August 2012
Australian house prices are slightly less overvalued than they were four
months ago but are still 36% above their fair value, according to The
Economist magazine In its August 2012 update of 21 residential-property markets around the
world, the Australian housing market ranked 13th with prices down 2.1%
year-on-year. In its previous update, The Economist reported Australian house prices as
38% overvalued. The Economist defines "fair value" as "the long-run average ratio of house
prices to disposable income and to rents". Australia is one of 12 housing markets, where prices are falling, says The
Economist with the best performing being market being Austria, with a 11%
year-on-year gain. However, the Australian market is not nearly as overvalued as Hong Kong (64%
above fair value), Singapore (58%) Canada (54%). Over the past five years, Australian house prices are up just under 10% -
modest in comparison to house price gains in Hong Kong (up 64%) and Austria
(23%) and below comparable markets like Canada (18%). The latest update shows Ireland to be the worst performing housing market of
the 21 with prices down 14.4% over the past year and nearly 50% over the
last five years. Spanish house prices decline 8.3% over the past year to July and are down
22.4% over the last five years. The Economist says that following years of "dizzying ascents, a big dose of
gravity has hit residential-property markets around the world". It says that many housing markets are returning "fair value" with eight
countries now around or below this mark. "But reaching this mark does not mean prices will stop falling. After
dropping by a third from their 2006 peak, prices in America now stand at 19%
below fair value," says The Economist. "The bottom of the market is close, however." It says that other markets like Ireland are "still in free fall". "Property prices in Ireland, at the foot of our table since April 2010,
continue to plummet. They have now halved in value, after a fivefold rise
between 1995 and their 2007 peak. It warns that the pace of house price decline in Spain quickened in the
second quarter of the year with the dire state of the Spanish economy
suggesting that "prices will keep diving". Prices in Britain fell by 0.7% in July to be down 10.2% over the past five
years.
Best regards
Linda J. Debello
L J Gilland Real Estate Pty Ltd
PO Box 19, Zillmere 4034.
Office:- 07 3263 6085
Mobile:- 0409995578 Confidential Email:- The information in this message is intended for the
recipient named on this email. If you are not that recipient, please do not
read, copy, distribute or act upon the message as the information it
contains may be priveleged. If you have received this message in error,
please notify us immediately by return email. Thank you for your
co-operation.
No comments:
Post a Comment