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New Zealand News

ANZ predicts a 27% drop in home values

The ANZ bank has raised its previous prediction of a 15% drop in home values from their late 2021 high to a current estimate of a 20% drop. Although housing market predictions are laden with ambiguity, ANZ analysts said in their monthly magazine Property Focus that it is “abundantly evident” prices will likely continue to decrease given the health of the global and local markets. When corrected for wage inflation, the expected reduction in property values is nearly 27% before prices return. These numbers not only indicate a sharper decline in home values than was anticipated, but they also suggest

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Australia News

Australian borrowers are in an ideal situation to withstand rising interest rates

According to Shayne Elliott, chief executive officer of ANZ, a large Australian bank, many Australian borrowers are ahead on their mortgage repayments, which should protect them from a rough landing when interest rates climb. This year, the Reserve Bank of Australia has raised the official cash rate six times in a row, bringing it to 2.6%. As a result, mortgage rates have increased from approximately 2% to between 5% and 6%. As the central bank combats inflation, the property market in Australia will likely face the weight of rising interest rates. Thursday on CNBC’s “Squawk Box Asia,” Elliot stated that

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UK News

Sales of London properties worth at least £5 million have increased.

More contracts were signed throughout the first nine months of 2022 than in any year from 2015 to 2020. According to a survey released by Savills on Tuesday, London’s luxury real estate market has had its most significant year on record due to the city’s appeal to wealthy homebuyers. There were 461 house sales in the city between January and September for £5 million (US$5.73 million) or more. According to Savills, this is more sales than any entire year from 2015 through 2020 combined, and it’s the biggest for the first nine months of any year since the real estate

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Australia News

Australia housing crisis: “We worry a wave of homelessness will strike.”

Already one of the least affordable rental markets in the world has seen rent increases, eight interest rate rises, rising expenses of living, and natural calamities compound the problem. Belinda has been turned down for rentals more than a hundred times in the last year. A temporary shelter in Campbell town, southwest of Sydney, is now home to the 39-year-old Australian single mother of four. She has six months to find a place to live that costs less than 500 Australian dollars (€310) a week, or she will be forced to sleep on the streets. After that, I have no

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Australia News

Where should you put your money in 2023?

For investors, 2022 was a turbulent year. Investors saw a decline in the value of their shares, homeowners saw their home values fall by the most significant margin in decades, and savers were disadvantaged since interest rates increased but failed to keep up with inflation. In that case, where can we expect to find promising investment prospects in the next year? To find out, we consulted the professionals. In an interview with CNBC, Mark Lister, investment director at Craigs Investment Partners, predicted that the real economy will be hit worse than the financial markets. Although the financial markets struggled in

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Australia News

Queensland Housing Minister Implores Sympathy Following an ‘Appalling’ Proposal to Increase Rents By 20%.

Queensland’s housing minister deems it “appalling” that landlords have been persuaded to boost rates amid a rental crisis after a Brisbane real estate agent advocated for rises of over 20%. Leeanne Enoch’s remarks came after Guardian Australia reported that Ray White West End emailed landlords pushing them to increase rents by more than double the inflation rate. “It is awful to see several real estate agents implementing significant rent hikes amid enormous demands on the whole housing sector,” said Enoch. “I would strongly urge real estate agents and homeowners to have compassion when we gather at the Queensland housing summit

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Australia News

NAB predicts that by 2023, home prices will fall by much to 22.3%

The National Australia Bank predicts that between 2022 and 2023, house values will decline by 23% in several states. The majority of Australia’s metropolitan cities, except Sydney, will witness a severe decline in housing values in 2023 due to the pandemic. NAB discovered that Hobart will have the most significant decline in home prices next year, with prices expected to decrease by 16.6% after falling by 6.4% this year. This could result in a 23 percent decline in Hobart home prices over the next two years, shaving as much as $174,000 off the price of a $758,000 median-priced home. The

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New Zealand News

New Zealand Home Prices Suffer Close Quarterly Drop

The New Zealand housing market saw one of its worst quarterly dips in the three months leading up to September, and it may not be done yet. CoreLogic New Zealand reports that the 4.1% quarterly decrease is second only to the 4.4% reduction during the 2008 financial crisis, which occurred 14 years ago. CoreLogic said on Wednesday in Wellington that property values had fallen for the sixth straight month, decreasing 1.5% after falling 1.8% in August. The annual rate of gain also reduced to 2.8%, the lowest since 2019. Property Slide The housing market quarterly declines the largest since 2008.

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Australia News

How the Australian real estate market has progressed over the past year.

The housing market is among the most susceptible to changes in interest rates. Eight consecutive rate hikes in 2022 to combat rising inflation sent shockwaves across the market and are still at the heart of the decline in Australian property prices. When comparing national home prices from November 2017 to November 2018, we see a yearly decline of 3.2 percent. However, Eliza Owen, chief of research at CoreLogic, says the decline’s speed has slowed “broadly since September.” Although some might consider this good news, she warned that next year could see a resumption of the slide. CoreLogic data reveals that

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Australia News

Indicators show that Australian property prices will decline in 2023.

There is one way to gain a sense of what will happen to Australian property values in 2023, notwithstanding the impossibility of predicting the future: look over the ditch. Since the Reserve Bank of New Zealand (RBNZ) began the current interest rate increase cycle in October 2021, New Zealand has served as a leading indicator for property markets and economies across the developed world. While some central banks, such as the RBA, were slow to join the campaign to combat inflation, other central banks worldwide followed the RBNZ in rapidly increasing interest rates. Since they were high in November last

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