Consumer spending has risen strongly in the past year, spurred on by property owners feeling richer due to higher house prices. This is called the household wealth effect. But with house prices looking toppy, should retailers – and investors – be concerned about the effects of a property market correction? continue…

by Andreas Lundberg Posted in Consumer discretionary, Property

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by Roger Montgomery Posted in Editor's Pick, Property

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Last October, demographer and author Bernard Salt wrote that millennial hipsters should spend less on ‘smashed avocado and crumbled feta’ and more on saving for a home deposit. His comment sparked a furious cross-generational debate – the idea that millennials can’t afford to buy a home simply because they spend too much on brekky appeared ludicrous. continue…

by Scott Shuttleworth Posted in Editor's Pick, Property

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For some time, property advocates have been arguing that Australian residential real estate prices will remain buoyed by the steady stream of Chinese immigrants buying property at any price. Now, it seems, that stream is turning to a trickle as the impact of tighter credit starts to bite. continue…

by Roger Montgomery Posted in Editor's Pick, Property

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Have you ever wondered why Australia has no listed residential REITs (real estate investment trusts)?  The simple answer is that they would offer poor returns.  And, these days, the returns would be worse than ever.  But the good news for would-be buyers is that the property price bubble could be about to end. continue…

by Roger Montgomery Posted in Editor's Pick, Property

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Retail rents in Sydney’s Pitt Street Mall – which houses some of the world’s leading fashion labels – are the most expensive in Australia. But they look positively cheap compared to those paid on New York City’s Fifth Avenue, which again takes out the gold medal for the world’s most expensive retail leases. continue…

by George Hadjia Posted in Property

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In the last month or so, we’ve seen a big surge in news articles and commentary about Sydney and Melbourne’s housing bubbles. But to the consternation of many people, there has been a reluctance by our politicians to introduce meaningful reforms. Could the reason be that they are among the nation’s most aggressive property investors? continue…

by Andreas Lundberg Posted in Property

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There’s an unfortunate trait amongst the broader population of investors that a rising price reaffirms their investment thesis. Take, for example, ever-rising house prices. continue…

by Roger Montgomery Posted in Property

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Another cause of our overheated property market has come to light in a recent report by Transparency International (the global anti-corruption watchdog). Based on their findings, it appears that money laundering by foreign ‘investors’ is at least partly to blame. continue…

by Andreas Lundberg Posted in Property

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In the last few days, APRA and ASIC have implemented new measures to try to cool the rampant Australian property market. But can these deterrents work, given that foreigners make up a large proportion of new buyers, and most won’t be borrowing from a local bank? continue…

by Daniel Wu Posted in Property

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