What a god! So fast | Which house price in Sydney or Melbourne is more likely to collapse?
"Chinatown"-Official media of Chinese Australians
According to the analysis of Wakelin Property Advisory, Paul Nugent. Paul Oxford, the over-development of apartments in Melbourne and the oversupply make southern Melbourne more vulnerable to price adjustments.
"Investors who invest in high-rise apartments need to pay more attention. In the future, they will try to find or retain tenants through rent reduction, and the value of the apartment will also grow negatively. Because of the prosperity and development of the housing industry in the past 20 years, we have led to Melbourne There is an unprecedented oversupply of properties in CBD."
As Sydney is still in short supply, it is expected to continue to promote the market, while the problem of oversaturation in the Melbourne market is more prominent.
"Sydney will slow down the real estate economy in the next 12 months." Angie Angie Zigomanis, senior manager of BIS Shrapnel real estate research institute, said, "The development of Sydney real estate can be eased by raising bank interest rates."
"In Sydney, it may take another three to four years for supply to catch up with demand, and if rising interest rates inhibit development, there is still the possibility of not fully keeping up with demand. Compared to Sydney, Melbourne has not initiated significant countermeasures, so even more The problem of oversupply is prone to occur."
Empower Wealth buyer agent intermediary and chairman of real estate professionals Ben Kingsley warned investors not to buy real estate in densely populated areas.
"If you are looking at an old-fashioned unit in an area, you will see a lot of choices, even some oversupply. You choose to buy this kind of property at the wrong time, especially in a densely populated area. Needs attention. Historical experience and our own research tell us that real estate price growth tends to be flat for two to three years (sometimes longer)."
Shane Oliver, an economist at AMP Capital, said the Melbourne property development boom has felt the impact further than Sydney, although he does not expect a sharp drop in the market.
Dr. Oliver said: "This is why the market has slowed down. The most significant increase in property prices was one to two years ago, and this was also the reason for the slow decline in downtown apartment prices. The same vacancy rate is also a damper."
Therefore, a comprehensive comparison of the economic development of Sydney and Melbourne, the number of foreign populations and the number of local residents, we can see that Melbourne's housing prices cannot match that of Sydney. Even in 2040, Melbourne will surpass Sydney and become the first city. I am afraid that Melbourne apartments will collapse. It happened in 5-10 years. At that time, Melbourne's population was still more than 100 million less than Sydney.
Article reprinted from Weixin News-Australia
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