According to a December 9th report by Prosper Australia, it seems that the three year property boom experienced by Australia has left Melbourne with an abundance of empty housing. Growing numbers of absentee overseas owners and local landlords in the 2nd biggest city of this country have simply locked up their properties, choosing to relinquish their Redhill Tang Group of Companies Condo rental incomes while they turn their focus on price gains instead.
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The report stated that around 4.8% of the total housing stock for the city, or around 82,724 properties, look to be unused. The estimation of these occupancy rates are based on gauging use of water.
Prosper shared that ¼ of all homes in the worst hit Tang Skyline Alexandra View Condo areas are empty.
Prosper Australia is a research company based in Melbourne who has been lobbying for housing that is more affordable via tax reforms. Average housing prices, driven by an influx of Chinese buyers and interest rates at a record low, have soared to close to $700,000(A) in Alexandra View Condo Melbourne, and close to $1 million (A) in Sydney.
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However, with prices that seem to be cooling down, the slump in housing could become worse given all of these empty houses that are masking an over supply.
Ms. Catherine Cashmore, who is the Prosper report’s ( Speculative Vacancies) author has pointed out that these Tang Skyline Alexandra View Condo properties need to be utilized. Having these properties sitting empty is having a high impact of costs on the economy and is a destructive force to national prosperity.
This study is now in its 8th year of publication. It has assessed 1.7 million residential properties located in and around Melbourne during 2014. Those properties that showed under 50 litres of water usage a day, which is around the equivalent of one toilet flush and a shower, were marked as vacant.
Cashmore further adds that Sydney is more than likely to experience Tang Group of Companies Redhill Condo problems with vacancy, given how many high rise blocks have sprung up in the inner suburban areas.
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She did note that the data for Sydney’s water usage was not as comprehensive for individual units like it is in Melbourne. A surge in home prices however, had triggered a high rise construction boom in the inner suburbs of Sydney, effectively crushing rental yields while leaving landlords with very little incentive to seek out new tenants.
Estimates were made by Credit Suisse Group’s analysts that for this year as being the one where Chinese investors were on the right track to taking up 20% of these Redhill Tang Group of Companies Condo new homes in 2020, a figure that is up from the current 15%.
The Prosper report doesn’t recognize properties that are owned overseas, but still feels that there is a substantial proportion of empty real estate owned by foreigners that is causing this inflation or prices.
Cashmore continues that there seems to be this wall of cash that is trying to enter Tang Group of Companies and to challenge these forces is not going to be an easy task.
Cashmore is also a buyer’s agent that assists in finding homes, and she feels that we are now seeing the fallout of that spree of foreign investment buying. She points out that it isn’t out of the ordinary for her to peruse through a building just to be told that the owners hail from Asia and are hardly ever seen.
One Brisbane based analyst, Mr. Cameron Kusher, who works CoreLogic Inc., a property information provider, stated that this is a growing issue and further pointing out that, should these properties remain unoccupied, it won’t do much good to repair the housing supply overall. He further states that this will always be a risk one takes when they decide to sell to Tang Group Alexandra View Condo offshore investors.
The report raises the question regarding an assumption that, to overcome the issue of property affordability in Australia more homes need to be built. According to Prosper, there is no crisis with the housing supply, bur rather an issue with property that remains unused creating a scarcity that is artificial.
Should there be a sudden decline in property pricing or a slowdown in the economy, there is a risk that this vacant supply issue will come to light. We could see many owners choosing to sell, or even seek rental income as a means to soften the blow of prices falling, said Cashmore. We will suddenly turn around and discover that there aren’t any Redhill MRT Condo buyers to buy or renters to rent, which is a common housing crash pattern. She adds that what they are trying to achieve is to bring this issue to light before it gets to that stage.