Welcome to this week’s episode of 2 Sense on The Australian Property Podcast, where we break down the news headlines and tell you what this means for you and your property.
Buyer’s Agent Pete Wargent and mortgage Broker (who also has just been awarded Australia’s #1 mortgage broker), Chris Bates, are discussing how spare rooms are causing undersupply, Evergrande collapse & Brisbane house pricing.
On this episode:
Story 1 – Scott Keck article on using our spare bedrooms
- His point? There are so many empty bedrooms in Australia that never get used if you are looking at the Census numbers. And we are now in a rental crisis.
- What does it mean and why? Policies to make more efficient use of the housing stock
- What do we think will happen? Incentives to allow borders without CGT implications?
- Key takeaways for property investors and homebuyers?
Story 2 – China’s 2nd largest developer Evergrande collapsed
- What happened and why? $81bn losses over 2 years as Chinese real estate market sinks
- Chapter 15 bankruptcy in New York filed and creditors are scrabbling to recover debts
- What does it mean for China? Recession, deflation, stimulus? Risk of Contagion?
- What does it mean for Australia? Commodity prices like iron ore are under pressure, Chinese developers exiting, and capital flight from China to Aus
- Should we be worried? Watch closely, but don’t panic
Story 3 – Brisbane becomes house price leader
- Brisbane housing prices up 4% over the past 3 months, ahead of Sydney
- What does it mean? The downturn has been fairly shallow, on average. Some property types have done better than others. Units have done well, first time in 12 years as borrowing capacity is down.
- What do we think will happen?
- What are people buying? Focus on quality, flood-free, 10-year horizon out to the 2023 Olympics.
- Implications for investors and homebuyers? Quality stock levels are still quite tight, need to be clear on your brief and decisive and do your DD. Fundamentals for Brisbane are strong – high population growth and a stock shortage, and the state Budget appears robust
