Saturday Summary – the most interesting articles I’ve read this week (2014/07/05)

There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.

Each Saturday morning I like to share some of the ones I’ve read during the week.

Enjoy your weekend….and please forward to your friends by clicking a social link buttons on the left.

Which City Has The Best Growth Prospects?

Brisbane house prices are forecast to grow by of 17% over the next three years, according to the BIS Shrapnel Residential Property Prospects 2014 to 2017 report.  It also states that:

Only Sydney market is likely to continue to show strong growth (of about 10% over the next two years) – although it does forecast a fall-off in growth by 2016/17.

Price growth in Melbourne, Darwin and Perth is expected to start slowing in the near future, while the markets in South Australia, Tasmania and Australian Capital Territory are expected to remain relatively flat.

Rate rises would be sufficient to strain affordability, particularly in Sydney and Melbourne where recent price growth has been strong, and the impact of higher rates would be compounded by rising dwelling according to Angie  Zigomanis from BIS Shrapnel

 

The rich keep getting richer | A perfect storm for property investing | Know which properties the banks prefer

Another great Real Estate Talk show  produced by Kevin Turner. If you don’t already subscribe to this excellent weekly Internet based radio show.

Details of this week’s show:
I share some lessons on how to continue to increase your wealth
Shannon Davis talks about development dilemmas
Jane Slack-Smith talks about the excellent opportunities to invest in properties around Australia and why it’s like a perfect storm

and more.

You should definitely subscribe to this weekly audio program. Click Here It’s free and you can listen on the go on your smartphone, iPad etc.

 

No risk of a property oversupply in Sydney

A new report by Morgan Stanley suggesting that an oversupply of apartments will trigger a correction in the Australian property market.

However this has been criticised by industry analysts, who argue it depends on which state you’re in.

Domain Group senior economist Dr Andrew Wilson said: “You would have to be a brave person to predict an oversupply of anything housing-related in Sydney”.

BIS Shrapnel associate director Kim Hawtrey echoed this sentiment stating “there is no risk of a building oversupply in Sydney”.

“There is such a huge level of pent-up demand that we can keep building dwellings [in Sydney] for a number of years to come and we won’t exhaust that demand,” he said.

However, in Melbourne it is a different story.

“Building approvals for apartments in Melbourne have been running at record levels for quite some time and, on our numbers, outstripping demand,” said Mr Hawtrey.

Dr Wilson said that the glut of apartments in Melbourne could have an impact on prices in the medium term but that would be contained to the Melbourne CBD where most of the building is occuring.

BIS Shrapnel estimates that NSW is currently undersupplied by 50,000 dwellings, Queensland had a 20,000 undersupply and Melbourne had already developed an oversupply.

 

Rezoning in Sydney  – Pete Wargent

In his blog regular Property Update Blogger Pete Wargent discusses the rezoning of a number of suburbs as Sydney desperately tries to address its dwelling shortage

urban iamge

In these precincts, high rise blocks should begin to spring up, but predictably, in suburbs such as Randwick – which will benefit from the new light rail, with an anticipated completion date of 2019 – there will be huge community backlash and an avalanche of good, old-fashioned eastern suburbs NIMBYism.

Areas earmarked included parts of North Ryde, Macquarie Park, Epping, Wentworth Point, Homebush, Mascot, Randwick itself and along Anzac Parade from Maroubra to Phillip Bay.

Note how developers have been mopping up entire streets making instant millionaires of homeowners whose plots have been rezoned for high density residential development.

The property boom is over? A good headline, but no evidence to back it up

Terry Ryder writes:

We’ve now had three clear instances in the past eight months of publicity junkies declaring “the property boom is over”, each time based on one month’s median price figures (dodgy at the best of times) from one unreliable source, only to have the notion controverted a month or so later by another more buoyant set of monthly figures.

Newspapers have been only too happy to regurgitate the press releases declaring the market dead, then re-born, then definitely dead, then miraculously resuscitated, then really truly absolutely dead, this time we really mean it.

If we can believe the headlines, the market peaked in October, then surged again, then peaked in February, then surged again, and more recently peaked yet again in May.

 

Final Thought:

“In expert tennis, 80% of the points are won, while in amateur tennis, 80% are lost. The same is true for wrestling, chess, and investing: Beginners should focus on avoiding mistakes, experts on making great moves.” — Erik Falkenstein

 

Blogs you may have missed this week:

If you didn’t have a chance to read my daily blog, here’s a list of some of the blogs you missed this week:

Property or shares – which makes a better investment?

Melbourne riddled with poor quality apartments

Buy & Hold is the way to invest in property | John McGrath

Reaping the rewards of related party property transfers

[Video] The latest property news with Kevin Turner | 2nd July



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About

Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been once agin been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


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