Plenty Of People Have Gone Broke, It’s A Bit Of A Gamble
A report from the Globe and Mail in Canada. "1225 Barclay St., No. 802, Vancouver. Listing price: $1.388-million. Selling price: $1.160-million. Previous selling price: $1,230,000 (2018). The sellers had purchased the condo as a flip, but after completing major renovations, the market softened, and they made less than expected, listing agent Ian Watt says. They had listed with a previous realtor for $1.548-million before dropping the price. 'It’s the reality of the market,' says Mr. Watt."
The Offaly Express in Ireland. "House prices are falling across the country, according to Daft.ie. In Offaly, prices in the third quarter of 2019 were 3% lower than a year previously, compared to a fall of 12% seen a year ago. The average house price is now €184,000, 41% below peak levels. Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: 'Price falls are concentrated in the Greater Dublin Area and, within that, in the most expensive markets. '"
"Raychel O'Connell, Communications Manager at Daft.ie said: 'It looks like we are finally seeing the effects of increased supply in the market. This is particularly true in Dublin where there was more than twice the number of homes for sale in mid-2019 than two years previously.'"
The Chiangria Times on Thailand. "Thailand’s residential property developers are being forced to rethink their project strategies as Chinese buyers dwindle. The residential property sector has shrunk by 13% year-on-year in the first half of 2019. Of the $3 billion transferred from abroad to purchase condo units in Thailand in 2018, 43% came from China."
"But Chinese money is now ebbing away from Thailand. Singha Estate joins a line of developers that have been struck by the slowing residential market. One large developer, Noble Development, in May presented a 'special' starting price of 4.7 million baht ($150,000) for units of a condominium project in central Bangkok. The price was 19% lower than its initial starting price of 5.8 million baht."
The South China Morning Post on Hong Kong. "Homebuyers took advantage of steep discounts and snapped up 351 of the 352 flats Sun Hung Kai Properties, Hong Kong’s biggest developer, had on sale at its The Cullinan West III project on Thursday. Developers have been rushing to offload flats before the introduction of a vacancy tax, now expected as soon as January."
"The developer priced the latest batch of flats at the project at an average of HK$23,172 per square foot, up to 25 per cent below the prevailing market rate in the area."
The Sydney Morning Herald in Australia. "Apartment buyers could be forced to stump up higher deposits as nervous lenders consider tightening mortgage restrictions due to Sydney's oversupply of apartments and fears about building defects. Lenders are traditionally more conservative when loaning money in suburbs with high-density apartments. RiskWise Property Research founder Doron Peleg said it is common practice for lenders to 'simply blacklist suburbs or postcodes' and refuse to lend in areas with a glut of apartments."
"On top of the oversupply which has doubled the Sydney apartment rental market in two years, major issues in building construction are affecting confidence right across the industry. The cracking at Opal Tower and subsidence at Mascot Towers in the past nine months are chief among those concerns."
"General manager of valuations at Opteon Scott Chapman said the uncertainty means the high-density apartment segment of the market is moving slowly. Mr Chapman said it becomes a self-fulfilling cycle where difficulty to get a loan meant fewer properties were sold. Mortgage Choice broker Paul Pappas said he has noticed lenders beginning to crack down on building cladding."
"'We’ve been lending for timber shacks in Balmain and Katoomba for 100 years and it’s never been a problem. There seems to be a focus on brand new properties that have some kind of cladding,' he said. 'Since when are valuers building experts? They’re not. Everyone’s just covering their backsides.'"
From Good Returns in New Zealand. "There’s a widely held belief that anyone who buys and sells a residential property within a short space of time will be earning vast, untaxed profits while trampling over vulnerable people along the way. But this belief relies on a number of assumptions – which have been showcased in some recent articles - that are blatantly incorrect, Auckland Property Investors Association president Andrew Bruce says."
"'Most of the time people actually don’t make the huge amounts from every sale that is implied. I know plenty of people who have gone broke doing it. It’s a bit of a gamble in fact,' says veteran landlord Peter Lewis."