29/10/2018-5

Sydney property prices fell 7% 28 years, the most hurt, the market downturn has never been seen

The property market in Australia continued to be sluggish. Property prices in October were the biggest year-on-year decline in six and a half years. They were mainly dragged down by Sydney and Melbourne in two major cities. Sydney property prices recorded the worst decline in 28 years. Some analysts expect that this wave of decline will become the worst property market in Australia’s history, and may continue until 2020, which is not good for consumer spending and economic growth.

According to the latest information from property consultancy CoreLogic, Australia’s national property prices fell for the 13th consecutive month, falling 0.5% month-on-month in October, down 3.5% year-on-year, the biggest decline since 2012, and the median price fell to AUD 536,600 (HK$3.03 million).

The median is about 4.7 million Hong Kong dollars

Sydney and Melbourne once again became the cities with the worst declines. Sydney fell 7.4% year-on-year, the worst performance since 1990. The median property price was A$833,300 (approximately HK$4.7 million) and Melbourne fell 4.7% to A$66.5 million. (about 3.74 million Hong Kong dollars) [Figure].

Tim Lawless, head of research at CoreLogic, pointed out that the property market has weakened widely, reflecting that the credit crunch is dragging down demand for housing, affecting property prices in most regions, and expects property prices to continue to fall for the rest of the year, and at least until 2019. The first half of the year. China’s crackdown on capital has reduced the demand of mainland buyers and is not conducive to the Australian property market. Su-Lin Ong, chief economist at Royal Bank of Canada (RBC), is even more pessimistic, expecting the weakness of the property market to continue into 2020.

Ben Udy, an economist at Capital Economics, said that property prices continued to fall in October, in line with their view that property prices will eventually be lowered by at least 12%, saying that this will make the current low-rise property market become a modern history in Australia. The longest and deepest downturn.

Good trade data, Australian dollar, 1 month high

As the household debt-to-income ratio soared to a record high of 190%, the Reserve Bank of Australia repeatedly cited consumer spending as a “source of continuing uncertainty”. Jason Teh, investment director of Vertium Asset Management, pointed out that property prices are a good indicator of consumer confidence, and the current situation reflects the weakening of the domestic economy.

In addition, the Australian Bureau of Statistics announced that the trade surplus in September rose to a two-year high of A$3.02 billion, much higher than analysts’ expectations of A$1.7 billion, which means the trade surplus in the third quarter reached A$6.4 billion, almost the second quarter. Three times the billion Australian dollars. Among them, exports in September increased by 1% month-on-month. After the data was released, the Australian dollar improved and the growth rate continued to expand. The US market surged 1.6% to 71.83 US cents, and the high reached a one-month high of 71.87 US cents.