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Is the housing bubble a myth or reality? John Edwards [video]

Peter Switzer asks John Edwards, founder of Residex, whether we’re in a housing bubble.

In this video he explains where we are int he cycle and his thoughts on the possibility of a property bubble.

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


'Is the housing bubble a myth or reality? John Edwards [video]' have 2 comments

  1. Avatar for Property Update

    April 6, 2014 @ 6:30 pm jake

    There is only one business in Sydney and that is selling each other overprice real estate. Sydney Boom Sydney Bust, just like the old book.

    What he DOES not understand is the CASH FOR CITIZENSHIP rule IS inflating property prices.

    Lets say you are a Chinese family all cashed up. The air is foul in China. And there is the silly OZ government who will give you citizenship if you buy a house. So they see a house for sale for 1 million. THEY will pay 1.8 million gladly as they are getting a twofor one! Citizenship AND the house. But for the people already Australian they only get the house. SO THEY ARE NOT GOING TO PAY AS MUCH.

    So you are selling to two different markets. Same product the house for the Chinese, PLUS AUSTRALIAN CITIZENSHIP, free medicare, free schools, discounted university, free health care for the aged parents.

    This is simply stupidlly short term greedy. This policy is pricing Australian Home buyers out the market.

    It is muddled thinking. NO ONE UNDERSTANDS THIS SIMPLE FACT. I

    Lets say it is like you are buying a meal and if you are Chinese you get the oven as well for free! while if you are Australian you only get the meal. So OF COURSE the CHINESE PAY MORE!!! They are not stupid.

    Who IS stupid is the idiots who came up with this policy without realizing the inequity they have created.

    Reply

  2. Avatar for Property Update

    April 6, 2014 @ 6:33 pm jake

    Surplus housing in China reaches five-year high
    Staff Reporter 2014-04-06 09:04 (GMT+8)
    Apartment blocks under consturction in Fuzhou, Fujian province. (File photo/CNS)
    Apartment blocks under consturction in Fuzhou, Fujian province. (File photo/CNS)

    Inventory of unsold houses in China’s first and second-tier cities have reached the highest level in the past five years. The land area of properties sold in the country in the first quarter of the year has also plunged at least 20% from last year, reports our Chinese-language sister paper Want Daily.

    Twelve major cities including Beijing and Shanghai saw a total of 27.72 million square meters of properties sold in the first quarter. The figure was 8.21 million square meters, or 22.86%, lower than the same period last year, according to Chinese financial news website Great Wisdom.

    Beijing has reported a 55% drop in the area of properties sold while the figures in Shenzhen and Hangzhou both decreased more than 30%. Shanghai, Chongqing and Nanjing also saw drops of over 20%.

    China’s property market has come to the end of its third three-year bullish cycle over the past decade and is about to enter a period of recession, said Lin Zhong, chairman of Chinese property developer CIFI Group. The market’s previous three down cycles took place in 2005, 2008 and 2011 and the market has approached its fourth this year, said Lin.

    A loss of high-end customers is said to be a key factor putting pressure on the property markets in first-tier cities. Since Chinese New Year in February, a number of people from Shanghai have gone to Australia to buy property. This group would previously have been the main target for the high-end property market in China.

    The lower property transactions have seen inventory of newly built houses reach a record high for the past five years, according to property market research institute E-House China, run by the Shanghai Academy of Social Sciences.

    As of March, the total area of newly built properties in 20 cities including Shanghai, Beijing, Guangzhou, Shenzhen and Nanjing has reached 84.01 million square meters, 16.3% higher than the same period last year and the highest since 2010.

    The inventory of unoccupied new homes has increased more prominently in first and second-tier cities where developers have launched new projects faster than the other regions. Surplus housing in third-tier cities is not as serious as local developers made fewer investments and developed fewer plots of land.

    Yan Yaojin, a researcher with E-House China, said the inventory has been pushed up by new property projects launched in March, tighter control on mortgage loans and price decreases in certain cities, which has made many buyers hesitant to enter the market.

    Reply


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