Today is the third day of the Easter weekend. Yesterday is the second day of the long weekend. To the surprise, Sydney`s liquidation rate was only 46% yesterday.
(photo source: Domain)
Readers may recall that some time ago, real estate experts said that as long as the Sydney liquidation rate does not fall below 50%, which means that the "off-season" of the property has not yet arrived. Surprisingly, however, Sydney`s liquidation rate hit a new low this week after experts said so. So, what was the real blow to Sydney`s house price?
1. Bank: a "hidden rule" that there can be no borrowing
It has been pointed out that the slump in house prices in Sydney is related to a "hidden rule" within Sydney`s banks, big and small.
In an article published in the Daily Telegraph yesterday afternoon, bank insiders revealed to them that banks do not approve loans for borrowers over the age of 30 who earn no more than $82466 a year in the "basic line".
The reason given by the bank is that although the wages of these people have exceeded Australia`s basic wage line, it is clear that they will not be able to prepare enough deposits to pay back their home loans for the next three decades. On the other hand, banks said there was "no age limit" for lending, but insiders said stable income at the age of 30 was actually an important "assessment target."
A spokesman for Westpac also said that when clients apply for mortgages, they will reach retirement age during the loan period, and banks will ask more questions. "it is not in our interest or in the interests of our customers to make loans that cannot be repaid," she said.
The insiders concluded that apart from age and income, the borrower`s deposits, as well as the amount required, were all considered by the bank.
The current statutory retirement age in Australia is 65, but the government is said to intend to raise the age to 67. But no matter how much, in Australia, if you fail to reach an average annual income of $82000 by the age of 35, there is almost no hope of buying a house in your lifetime. This is also a blow to the confidence of many homebuyers.
2. The house price had to be "reduced in price for sale."
But on the other hand, a bunch of Sydney buyers can`t afford to buy a house, and many Sydney sellers are suffering from a "price-reduction" problem.
Sydney`s median home price has reportedly fallen 2.5 percent in the past three months and is likely to fall below 4.2 percent this year, the biggest drop since the height of the global financial crisis in August 2008.
(photo source: The Australian)
The news said it was the result of weak demand. Things will get worse, with CoreLogic forecasting a 5 percentage point decline in median prices across the city this year. The Daily Telegraph quoted industry data as saying that 25 percent of homes for sale now have only 80 percent of home buyers compared with a year ago. In this case, many Sydney sellers have had to cut prices by as much as 30 percent from booking prices in the hope that more buyers will come to buy their homes.
3. China "exits", apartment prices go up
But at the same time that Sydney`s housing market is generally depressed, the price of apartments in Sydney has gone up.
(photo source: news.com.au)
Sydney apartment prices are up 3 percent in general from the same period last year, while apartment prices in the eastern and southern suburbs are up 11.2 percent and 12.9 percent year on year, according to the news.
According to economist Dr Andrew Wilson, Sydney apartment prices are attributable to three things:
a. The Sydney apartment market, unlike the housing market, has yet to show a tendency to oversupply;
b. The new state government introduced last year the first time home buyers stamp duty reduction policy;
c. The "disappearance" of foreign buyers led by Chinese buyers.
Therefore, the Australian state governments and federal government policies, as well as the attitude of banks, all of which affect Australia`s housing market. But this time the results, perhaps the housing market "not as expected", but just hit their minds.
Attached: liquidation rate this week
Sydney-with a liquidation rate of 46 percent, the total selling price was $8,055,000, and the median price could not be calculated.
Melbourne-the liquidation rate is 61%, and the total selling price is $4,562,700. The median price cannot be calculated.
Brisbane-only one set for $538000
Adelaide-only one set sold, price unknown
Canberra-no property at auction this week
