Housing Supply Falling Along The East Coast
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Housing Supply Falling Along The East Coast

Supply-chain issues are affecting house-and-land packages.

By Kanebridge News
Wed, Mar 2, 2022 2:25pmGrey Clock 2 min

A dire undersupply of new housing lots is on the horizon due to construction delays and is expected to dire up the price of house-and-land packages on the Australian east coast this year following a surge in prices in 2021.

Housing analyst Colin Keane, a director at Research4 expects months of delay.

“It has no supply and customers are still lining up,” said Mr Keane.

Surprisingly, Sydney didn’t take top prize for the most lot sales but did take the ribbon when it came to price growth, up 34% in 2021 from $534,000 from $430,000 for house-and-land packages.

According to Mr Keane, a lack of active supply drove a 50% drop in sales volumes in the latter half of 2021 following record sales volumes in the first half of the year.

“The lack of supply resulted in an estimated nine months of demand being left on the table.

’The number of active [housing] estates dropped from 150 to 75 in one quarter, with a further 21 expected to end in early 2022. [This is] a massive impact on capacity to supply [new lots], he told Financial Review.

Further, the average size of a Sydney housing estate had slumped from a long-term average of 275 to just 78 lots in 2021.

Melbourne, the country’s biggest residential land market, saw 21,000 lot sales in 2021. Prices increased 15% as first home buyers and others priced out of established housing headed to outer suburbs.

Elsewhere on the east coast, south-east Queensland developers are benefitting from the undersupply situation in Sydney and influx of Melbourne buyers.

“Average land sales for 2021 were 41 per cent higher than the past seven-year average … and prices went up 16%” Mr Keane said.

South-east Queensland loot sales approached Melbourne levels with 1900 per month in the June quarter, there was still not enough to meet demand with Mr Keane estimating four months of demand left in the market that he expects will drive up prices in the short term.


Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

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Hong Kong Takes Drastic Action to Avert Property Slump

The city’s real-estate market has been hurt by high interest rates and mainland China’s economic slowdown

Fri, Mar 1, 2024 3 min

Hong Kong has taken a bold step to ease a real-estate slump, scrapping a series of property taxes in an effort to turn around a market that is often seen as a proxy for the city’s beleaguered economy.

The government has removed longstanding property taxes that were imposed on nonpermanent residents, those buying a second home, or people reselling a property within two years after buying, Financial Secretary Paul Chan said in his annual budget speech on Wednesday.

The move is an attempt to revive a property market that is still one of the most expensive in the world, but that has been badly shaken by social unrest, the fallout of the government’s strict approach to containing Covid-19 and the slowdown of China’s economy . Hong Kong’s high interest rates, which track U.S. rates due to its currency peg,  have increased the pressure .

The decision to ease the tax burden could encourage more buying from people in mainland China, who have been a driving force in Hong Kong’s property market for years. Chinese tycoons, squeezed by problems at home, have  in some cases become forced sellers  of Hong Kong real estate—dealing major damage to the luxury segment.

Hong Kong’s super luxury homes  have lost more than a quarter of their value  since the middle of 2022.

The additional taxes were introduced in a series of announcements starting in 2010, when the government was focused on cooling down soaring home prices that had made Hong Kong one of the world’s least affordable property markets. They are all in the form of stamp duty, a tax imposed on property sales.

“The relevant measures are no longer necessary amidst the current economic and market conditions,” Chan said.

The tax cuts will lead to more buying and support prices in the coming months, said Eddie Kwok, senior director of valuation and advisory services at CBRE Hong Kong, a property consultant. But in the longer term, the market will remain sensitive to the level of interest rates and developers may still need to lower their prices to attract demand thanks to a stockpile of new homes, he said.

Hong Kong’s authorities had already relaxed rules last year to help revive the market, allowing home buyers to pay less upfront when buying certain properties, and cutting by half the taxes for those buying a second property and for home purchases by foreigners. By the end of 2023, the price index for private homes reached a seven-year low, according to Hong Kong’s Rating and Valuation Department.

The city’s monetary authority relaxed mortgage rules further on Wednesday, allowing potential buyers to borrow more for homes valued at around $4 million.

The shares of Hong Kong’s property developers jumped after the announcement, defying a selloff in the wider market. New World Development , Sun Hung Kai Properties and Henderson Land Development were higher in afternoon trading, clawing back some of their losses from a slide in their stock prices this year.

The city’s budget deficit will widen to about $13 billion in the coming fiscal year, which starts on April 1. That is larger than expected, Chan said. Revenues from land sales and leases, an important source of government income, will fall to about $2.5 billion, about $8.4 billion lower than the original estimate and far lower than the previous year, according to Chan.

The sweeping property measures are part of broader plans by Hong Kong’s government to prop up the city amid competition from Singapore and elsewhere. Stringent pandemic controls and anxieties about Beijing’s political crackdown led to  an exodus of local residents and foreigners  from the Asian financial centre.

But tens of thousands of Chinese nationals have arrived in the past year, the result of Hong Kong  rolling out new visa rules aimed at luring talent in 2022.


Consumers are going to gravitate toward applications powered by the buzzy new technology, analyst Michael Wolf predicts

Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’

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