Every partner who wants to live and work in Sydney will end up facing a problem, buying a house.
Some people in Sydney`s housing market yelled up and down, confused, but Sydney`s apartment, I`m afraid the situation is gone.
Economists and the Bank of Australia have recently issued a critical notice to Sydney`s apartment!
Today, Xiao Shuai wants to talk seriously with everyone. Because, for some people, the following information must be carefully looked at, otherwise, the next three years may be lost.
House prices will fall by 50% over the next three years
I do not know if it is a coincidence, just these two days, Australian economists, financial magazines, and even the Bank of Australia have come forward, painstakingly warning everyone: careful, apartment prices will fall!
Economists: 50% in three years
Martin North, founder and economist at (Digital Finance Analytics), an Australian digital financial analysis firm, recently updated forecasts for Australian real estate: Australia`s apartment market is more dangerous than previously thought.
Martin has long focused on Australian property market policy and data research. He told the media that the most vulnerable areas of Australian property are now evident, and that the decline in apartments in Sydney and Melbourne has been secured.
In particular, Sydney`s apartment, flat, no suspense, a three-year fall!
Financial review: a sharp drop is imminent
At the same time, Australia`s largest financial media Aussie Financial Review also analyzed: Australian apartments plummeted, immediately triggered, not small fluctuations, but really plummeted, all buyers have to be careful!.
The Bank of Australia: I`m afraid it affects the economy as a whole
If one economist`s forecast is not enough, the (Financial Stability Review), a 76-page review of Australia`s financial stability just released by the Bank of Australia, has officially sealed that concern.
In its analysis, the Bank of Australia concluded that housing prices in Sydney and Melbourne could face serious declines in the next few years, which are likely to affect the Australian economy as a whole.
The Bank of Australia has never been so worried.
The Sydney property market, in particular, is the worst! The current decline is only a start, and then, as a large number of new apartments enter the market, the consequences are conceivable.
Although the Bank of Australia is careful in its words, it is already clear that a sharp fall is for sure.
Australian apartment prices fell 10, 000 in Sydney in 2018.
How on earth will house prices fall? Economist Martin is very specific. He made special mention of Sydney`s Ryde district, where apartment prices fell 40% a month ago, but now.
A month ago, when he predicted a drop of 40%, he found himself wrong.
It`s down 50% in three years!
When will it come back? Another 13 years!
What happened to Sydney`s apartment?
The predictions and warnings above are really not alarmist, and if you don`t look at the apartment market in Sydney now, you really don`t know you`ve been howling so much.
The developer went bankrupt.
New apartments are still on the rise, and ads for sale are still shouting silently. But more recently, the handsome Time line is starting to have some news like this:
Developer bankruptcy liquidation, apartment 33% discount sale!
This is worse than the owner of Jiangnan Leather Factory.
Issuing such a Time line, is absolutely not a joke, this is Australia`s various loan companies, intermediary companies helplessness. Because a lot of developers really have been dragged down alive!
For example, in Sydney before in the Chinese community set off a huge wave of Hanlin Court. Developers see the enthusiasm of Chinese buyers to buy apartments is high, ready to make a profit! A large piece of land in Epping was bought at a high price to build an apartment.
Never expected the apartment to be completed, Australia`s government action, when the apartment completed, Chinese buyers are gone.
Even after getting such a large Chinese-language property, it was useless to sell the house at the price of the cabbage, and the loss was terrible.
Like this, Chinese buyers want to salvage a lot of developers, there are a number of bad luck, bumped into the Sydney house prices turned sharply under the gun, the house can not sell, loans can not be sold, can only go bankrupt liquidation.
The contract for the purchase of a house was broken.
Developers on the desperate, there are a large number of buyers of prospective housing (flooring). The contract was signed, the house was built, and the buyer broke the contract! I would rather lose a deposit of ten to twenty thousand Australian dollars than this house.
And why is that?
In these Australian apartment markets, once very popular buy a house (off-plan), also known as "flooring". First of all, Chinese buyers` acceptance of "buy a house" is very high, in the domestic is not all buy a house. And for young buyers in Australia, they also like term housing, not only cheaper than the current home, but also save a large stamp duty.
The problem, however, was that Sydney`s house price had fallen in the period from the deposit to the closing of the house. For many buyers, it is not a matter of losing some money, it is that they can`t afford to buy it at all!
At that time signed the contract, the house is 1 million, mortgage eight hundred thousand, but now the bank to evaluate the market value of the house, only to lend six hundred thousand, then two hundred thousand in the middle how to do?
Smashing iron is not enough!
How many such buyers are in Sydney?
Take a look at a set of data.
Campbelltown, has 4747 buyers facing this difficulty. There are 3931 in Kellyville and 3592 in Blacktown.
In thousands of words, it is not an exaggeration at all.
These buyers have only two paths in front of them.
- To buy the devalued house
- Breach of contract
How many people because the card died in the bank loan, had to default to give up buying a house.
And they became the last straw to crush developers.
Sydney people who bought pre-term homes two years ago, did not buy the house, but also lost a deposit, and developers are even worse, was dragged directly into the abyss of bankruptcy by the depressed housing market.
Now they are all waiting for the pick-up man to appear, all blame the Chinese for not picking up the offer.
In recent days, economists and the Bank of Australia have issued such pessimistic forecasts, one of the most crucial factors is that Chinese buyers have run away.
The Chinese witnessed the prosperity of the Sydney apartment
In these analyses, the Ryde district of Sydney, once referred to as Sydney`s Ryde district, must be familiar to the Chinese, once a mythical, fast-growing residential area. But have you noticed that the prosperity of Ryde is quietly being hollowed out.
Property prices in the Ryde district were once soaring, prompting a large number of developers to divide the cake.
Each tower is a high-rise apartment, at the height of Ryde, at its busiest hour, to see more than a dozen towers working at the same time.
Properties such as dense apartments do not appeal to local Australians, but for foreign buyers, especially those who prefer residential buildings, such a well-decorated apartment is simply the best choice. As a result, the apartment has become a high and fast return on investment money cow!
Apartments are popular among Chinese investors
Looking at Ryde`s house prices a month higher than a month, those who bought apartments a few years ago, have yet to cover the heat, and they can earn hundreds of thousands of Chinese people living in Ryde in the same way as the apartments that have been built up on the ground, in the same way that there are hundreds of thousands of Chinese living in Ryde in the past few years.
However, Ryde`s prosperity peaked in July 2017.
After the boom, Chinese buyers withdrew
But, who can think, prosperous come swift and violent, walk also decidedly.
After a flood of foreign buyers into Sydney`s apartment market, government panicked and began to tighten its lending policy. Many foreign buyers began to hesitate, and the whole trend of madness came to an end.
Combined with a series of immigration and tax policies, the majority of foreign buyers were kept out of the door.
Those who intend to make a lot of money in the Chinese buyers, how can not think of, unexpectedly failed to achieve an abacus! Where are the Chinese buyers?
A few years ago, Chinese buyers of condominiums swarmed in because they earned money as soon as they got there.
Today, different from the past, the witty Chinese buyers have become vigilant, now buy a house, it is really a face of the "catch-up man."
Worst of all, the apartment market was already very low, and a few months ago, Sydney`s Opal tower was getting worse!
There`s a crack in the upscale apartment Opal Tower! Has become the bean curd dregs project, caused the owner not to say, also broke out the Sydney apartment industry quality problem!
This is a fatal blow to the Sydney apartment market! The buyers, who were still hesitant, have completely lost their minds.
But developers who had bought land a few years ago and were ready to build apartments had no way to go. Without a Chinese buyer to buy a house, the whole project may be going to yellow, but the high-priced purchase of the land, not building a house is even worse.
The condominium has to be built and sold at a lower price, and there are so many developers in Sydney that it is hard to keep their capital.
Over the next three years, a large number of new apartments went public.
In the next few years, Sydney will have lots of apartments built to enter the property market, according to a report by the Bank of Australia. The whole market will greatly increase the supply of new apartments.
However, the demand for housing will not increase, oversupply is a disaster for the Sydney apartment market.
The Bank of Australia released the report as a reminder to all homebuyers that future downturns are already such that the risks are too high to take over, and you must make sure you think about it!
Before only know Sydney house price is falling, did not think, already this is like this.
Those friends who want to pick up the leak should be careful.
