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Housing bubble, what housing bubble? The Canberra’s inner south from 2005-2013.

By justsomeaussie - 10 February 2014 44

Canberra inner south housing prices
Justsomeaussie sent this in challenging the notion that we’ve had a housing bubble in the inner south that’s going to ‘burst’.

What are your thoughts? Is housing in Canberra over priced? due to crash or will we just see stagnation for a while?

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44 Responses to
Housing bubble, what housing bubble? The Canberra’s inner south from 2005-2013.
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dungfungus 11:17 am 01 May 15

I think the Canberra bubble is about to burst. Every region except Canberra had increases. The fall in Canberra prices was substantial.

* Sydney, up 1.0pct to $732,500
* Melbourne, up 0.8pct to $555,000
* Brisbane, up 0.6pct to $452,000
* Adelaide, up 1.6pct to $400,000
* Perth, up 0.6pct to $520,000
* Hobart, up 1.6pct to $320,000
* Darwin, up 0.3pct to $540,000
* Canberra, down 1.5pct to $530,000
Source: RP Data

Maya123 10:20 am 17 Aug 14

arescarti42 said :

rigseismic67 said :

Agree with NoImRight. In the 1980s I was working in a low paid job (apprentice) and decided to buy a house in the Inner South. Coworkers said I was an idiot and that I should rent, later I bought another house nearby with all and sundry telling me to invest instead in Telstra shares. I paid $340,000 for both houses and they are now worth a combined $1.5 million (both owned outright). That’s my super nearly sorted. When purchased they were both around 5 years salary each, which seems to fit with todays market.
Bubble? who cares I think I will get my money back no matter what happens. I know someone who has been saving for over 10 years to buy a house and never taking the plunge, they keep saying prices will go down…….good luck with that strategy. You will likely not save enough to meet the increases in house prices. There is no time like the present.

Nothing like being able to buy a house in the inner south on an apprentice’s wage. I think you’d struggle to rent a room in a share house if you were an apprentice nowadays.

Of course there is the problem of getting the loan in the first place, but managing that, the way I paid for my first house on a low wage was to rent out the other two bedrooms in the house. That way (as well as living very frugally – no travel, growing my own vegetables, etc) I was able to pay off the loan in five years. Then I bought a rental property.

Fluffy 8:46 am 17 Aug 14

justsomeaussie said :

For me what is interesting is the vacancy rates. Traditionally sitting at 1% are now at 6.5% and have been up to 8%.

The most important thing that figure (an increase of 650% to 800%) is that the rental prices are much higher than they should be for such a small country town. The result: renters are condensing into share houses, lots of people living together, to minimise their own expenditure. The people renting out their houses and apartments are losing out, with their properties sitting vacant and not earning a cent.

If, as the supplier of a product or service, you do not meet the needs of the market, you do not make money. That is what’s happening.

VYBerlinaV8_is_back 8:57 am 18 Feb 14

Property in Canberra is reasonably expensive, at least when compared with prices of 15 years ago. There are three reasons for this:
1) Canberrans earn a lot
2) Credit is cheap
3) New house/land is very expensive, and this puts a floor under the price of existing stock.

To suggest Canberra property is in a bubble is simply parroting the emotive BS of the various property bear web sites. Unless there’s a major economic upset, prices won’t change much. I’ve always believed that 2010-2020 will contain some major stagnation, and have no reason to change that view. The public service cuts won’t be like 1996, and there’s bugger all new supply worth buying.

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