August 19, 2023

2-Sense: Lot prices surge, the fixed rate cliff & new housing policy

Listen Later

40 minutes

Welcome to this week’s 2 Sense where the Australian Property Podcast team discusses the latest news headlines and breaks down what it means for your property.

This week Buyer’s Agent, Pete Wargent and Mortgage Broker, Chris Bates shrinking lot sizes, price surges, mortgage resets & new proposed policies,

Story 1 – Lots shrink and prices surge

Land prices up significantly over the past decade, according to the HIA

Particularly large increases in Sydney and Hobart with the lowest in Perth

Lot prices have also shrunk. Price per square meter is up 200% in Sydney

How are smaller blocks affecting the housing market?

What are the drivers? Population growth, slow land release, or both?

What does it mean for housing going forward?

Story 2 – Mortgage cliff a mirage

Fixed-rate mortgages will reset from 2% to 6% for many borrowers, meaning a total of $350bn of loans in total to reset (out of $2tn mortgage debt in Aus)

What does it mean?

Will we see a reduction in consumption, and some will go into arrears to be forced to sell?

Are we halfway through the cliff now? Arrears have increased a bit (CBA results, Bendigo Banks, etc), but not too much so far

How long to go? The rest of 2023, but looks promising to date, so will the market drop as a result?

Story 3 – New housing supply target

The government has increased the target to 1.2m homes over 5 years to 2029, and a renewed focus on renter rights

Prime Minister has backed away from the rent freeze (reduction in supply)

Why is it proposed? Undersupply is looming, and record population growth

Will it happen? We have never built over 225k in a year before, so 240k a year for 5 years is a huge ask.

What about the quality? Defects, leaks, structural issues? There will be increased pressure on materials prices and we don’t have enough skilled labour.

What does it mean for property? The big push for land release and rezoning. Caveat emptor with new builds.

Learn more about your ad choices. Visit megaphone.fm/adchoices

...more

View all episodes

View all episodes

Download on the App Store

Download on the App Store

Get it on Google Play

Australian Property Podcast

By Rask

August 19, 2023

2-Sense: Lot prices surge, the fixed rate cliff & new housing policy

Listen Later

40 minutes

Welcome to this week’s 2 Sense where the Australian Property Podcast team discusses the latest news headlines and breaks down what it means for your property.

This week Buyer’s Agent, Pete Wargent and Mortgage Broker, Chris Bates shrinking lot sizes, price surges, mortgage resets & new proposed policies,

Story 1 – Lots shrink and prices surge

Land prices up significantly over the past decade, according to the HIA

Particularly large increases in Sydney and Hobart with the lowest in Perth

Lot prices have also shrunk. Price per square meter is up 200% in Sydney

How are smaller blocks affecting the housing market?

What are the drivers? Population growth, slow land release, or both?

What does it mean for housing going forward?

Story 2 – Mortgage cliff a mirage

Fixed-rate mortgages will reset from 2% to 6% for many borrowers, meaning a total of $350bn of loans in total to reset (out of $2tn mortgage debt in Aus)

What does it mean?

Will we see a reduction in consumption, and some will go into arrears to be forced to sell?

Are we halfway through the cliff now? Arrears have increased a bit (CBA results, Bendigo Banks, etc), but not too much so far

How long to go? The rest of 2023, but looks promising to date, so will the market drop as a result?

Story 3 – New housing supply target

The government has increased the target to 1.2m homes over 5 years to 2029, and a renewed focus on renter rights

Prime Minister has backed away from the rent freeze (reduction in supply)

Why is it proposed? Undersupply is looming, and record population growth

Will it happen? We have never built over 225k in a year before, so 240k a year for 5 years is a huge ask.

What about the quality? Defects, leaks, structural issues? There will be increased pressure on materials prices and we don’t have enough skilled labour.

What does it mean for property? The big push for land release and rezoning. Caveat emptor with new builds.

Learn more about your ad choices. Visit megaphone.fm/adchoices

...more

More shows like Australian Property Podcast

The Property Couch by Bryce Holdaway & Ben Kingsley

The Property Couch

64 Listeners

Property Investment Podcast Network by Momentum Media

Property Investment Podcast Network

23 Listeners

The Money Puzzle by The Australian

The Money Puzzle

45 Listeners

Equity Mates Investing Podcast by Equity Mates Media

Equity Mates Investing Podcast

62 Listeners

Property Investment, Success & Money | The Michael Yardney Podcast by Michael Yardney; Australia's authority in wealth creation thru property

Property Investment, Success & Money | The Michael Yardney Podcast

31 Listeners

Investopoly by Stuart Wemyss

Investopoly

13 Listeners

money money money by Glen James

money money money

62 Listeners

The Elephant In The Room Property Podcast | Inside Australian Real Estate by Chris Bates

The Elephant In The Room Property Podcast | Inside Australian Real Estate

10 Listeners

Australian Investors Podcast by Rask

Australian Investors Podcast

21 Listeners

Australian Finance Podcast by Rask

Australian Finance Podcast

28 Listeners

Pizza and Property by P&P Media

Pizza and Property

14 Listeners

this is property by John Pidgeon & Rachelle Kroon

this is property

9 Listeners

Scouting Australia Podcast by Australian Property Scout

Scouting Australia Podcast

5 Listeners

Aussie FIRE | Financial Independence Retire Early by Hayden Smith & Dave Gow

Aussie FIRE | Financial Independence Retire Early

4 Listeners

Australian Retirement Podcast by Rask

Australian Retirement Podcast

9 Listeners