The Crippling Highrise Disaster Continues…

The truth is that recent high rise construction in many Australian cities, are riddled with defects, and someone needs to pay for rectification. This surge in high-rise apartment construction happened as building certification was privatised, costs cut and poorly trained workers employed.

As a result, we have a litany of increased building flaws and quality concerns, such as cracked foundations, water leaks, balcony defects, and flammable cladding. According to the NSW Building Commission strata survey, more than half of newly registered buildings since 2016 had at least one significant issue that will cost an average of $331,829 to correct.

The Strata Community Association NSW found that waterproofing was the most common major issue, followed by fire safety. It also discovered that around one out of every ten buildings had structural and enclosure difficulties, such as roof or facade flaws.

Examples include Sydney’s Opal and Mascot Towers, which were evacuated due to extensive cracking.

Building regulation consultant Bronwyn Weir cautioned that an “enormous” problem had developed whereby “thousands and thousands of apartments have serious defects in their buildings”. “Some of these buildings could potentially be a write-off. We have what is now you know, a systemic failure that is quite difficult to unravel”, she said.

Engineer Leith Dawes warned that purchasing an off-the-plan apartment in Australia had degraded into a game of “Russian roulette” because of the numerous building faults that are frequently overlooked.

Similar structural problems have been uncovered across Melbourne, including leaking buildings, mould, and faulty balconies, Canberra, Gold Coast and many other areas too.

These problems have cost owners and taxpayers millions of dollars to rectify. But the problems are widespread, and many individual property owners are caught in the crossfire.

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
The Crippling Highrise Disaster Continues…
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Its Edwin’s Monday Evening Property Rant!

Once again, our Monday evening chat with property insider Edwin Almeida pulls apart the rubbish being spoken though official channels and gets to the heart of the issues facing property buyers, especially first time buyers.

You could not make this stuff up!!!

Apologies for glitches on the audio tonight, the connection to Edwin was steam powered as we discuss in the show!!!

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Its Edwin's Monday Evening Property Rant!
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Property Buyers’ Plans Destroyed By “Higher For Longer” Rate Trends!

The combination of high prices and interest rates is seeing affordability become extremely stretched at a time when cost-of-living pressures more generally are also constraining incomes, according to a recent Westpac Survey.

In response, would-be buyers are pushing the timing of their planned purchases back – less than 10% expect to transact in the next 6mths, the lowest share across all survey waves.

The prospective flow of first home buyers is showing the biggest response to these pressures, planned purchases down materially on last year. Just 2% of those surveyed expecting to become a first time owner in the next year.

Outside of the first home buyer space the story looks to relate more to the interest rate situation. Prospective investor buyers have pared back plans for the next six months.

And sales results for this weekend confirms the slowing market, despite some properties still exceeding reserves in some places. As reported in the AFR, the prospect of interest rates staying high has spooked many buyers, making them less likely to spend above their budgets.

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Property Buyers’ Plans Destroyed By “Higher For Longer” Rate Trends!
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The Real Costs Of Migration!

In an increasingly globalized workforce — which intensified in the wake of Covid-19 as nations looked to fill acute worker shortages — New Zealand is a desirable destination. It was ranked the most attractive nation in the OECD for skilled migrants, according to a 2023 report by the Paris-based organization, which rated the country highly in categories such future prospects, family environment and inclusiveness.

But the volume of arrivals is now raising concerns about pressure on infrastructure, rising house prices and the ability of the economy to meet the extra demand for goods and services. That could in turn fan inflation, compounding the strains.

“Very strong population pressures will continue to stress the economy,” said Kelly Eckhold, chief New Zealand economist at Westpac in Auckland.

The Reserve Bank of New Zealand has picked up on the trend, citing the impacts of high immigration on house prices and rents. That may see it hold its benchmark rate at 5.5% until the end of this year or into 2025, even if global peers begin to lower theirs, though even that is less certain now.

And as we look are Ireland, the UK and Australia, its the same story. High migration lifts housing costs and drives inflation. Time for politicians to flex their strategies, as New Zealand and Canada have already done!

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
The Real Costs Of Migration!
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DFA Live Q&A Replay: Inside The Property Twilight Zone! With Leith van Onselen…

This is an edited version of my latest live discussion, with Leith van Onselen, Chief Economist at Nucleus Wealth, and Co-Founder of Macrobusiness.

We will dive into the latest in property, economics and politics, to try and make sense of what is happening. What’s the future trajectory of the markets? How will Albo’s announcables play in? What will happen to migration? And can we learn from what is happening in New Zealand?

Go to the Walk The World Universe at https://walktheworld.com.au/

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
DFA Live Q&A Replay: Inside The Property Twilight Zone! With Leith van Onselen…
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Its Edwin’s Monday Evening Property Rant!

Another deep dive into property and politics with our Property Insider Edwin Almeida, as we look at the latest spin on affordability and “hot suburbs”.

The drive towards high-rise density has consequences, but even the quality of low-rise is a concern. Meantime, listings are still in the doldrums, while rental availability is largely shot.

And recent DFA coverage stirred up the Chatterers….

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Its Edwin's Monday Evening Property Rant!
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Government Housing Targets An Impossible Dream As Building Approvals Shrink!

The ABS released data on the total number of dwellings approved in February recently. They say that despite growth in private houses in the month, the total number of dwellings approved fell 1.9 per cent in February (seasonally adjusted), after a 2.5 per cent fall in January. The trend estimate for total dwellings approved fell 3.0%, following a 2.7% January decrease.
Specifically, approvals for private sector dwellings excluding houses fell 24.9 per cent in February in seasonally adjusted terms, driven by a fall in the number of approved large apartment projects. In contrast, approvals for private houses rose 10.7 per cent in February.

This continues to confirm the massive gap between the Government aspiration of 1.2 million new homes over the next 5 years. On a straight-line basis, this translates to a target of 240,000 each year – which by the way is still way under the number needed to house the surging migrants and fill existing shortfalls.

So why not tackle the root cause issue here, too high migration? Entrepreneur Dick Smith fears today’s young people will have no savings and be forced to live in Chinese-style high-rise apartments unless immigration is urgently slashed, according to an article in the Daily Mail.

The veteran businessman and philanthropist says they need to understand the connection between a surging population and climate change. The entrepreneur, who turned 80 last month, fears homes with a backyard in Australia’s capital cities will no longer exist by 2050.

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Government Housing Targets An Impossible Dream As Building Approvals Shrink!
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It’s Another Fine Mess… With Tarric Brooker!

Our latest Friday Afternoon chat with journalist Tarric Brooker as we look at the current data, which questions potential rate cuts, and housing trends, as demand stays strong while supply is limited.

Below the water line we examine some of the underlying assumptions behind the numbers, and how politics have changed.

Worse, the structural issues can be traced back to a series of political decisions, which were policy errors – when will they come clean?

Tarric’s charts are here: https://avidcom.substack.com/p/dfa-chart-pack-12th-april-2024 if you want to follow along.

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
It’s Another Fine Mess... With Tarric Brooker!
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Kiwis Faced With Higher For Longer Rates Stuck At 5.5%!

The latest decision from the New Zealand Monetary Policy Committee was released on Wednesday, which was to leave the cash rate at 5.5%. Their key messages were little changed since the February MPS, showing little hurry to change current restrictive settings despite overall CPI inflation expected to fall below 3% this calendar year.

Upside short-term risks to the inflation outlook were largely downplayed, with the RBNZ expecting sub 3% inflation later this year. Despite the economic outlook evolving broadly as expected and inflation on a cooling trend, the RBNZ chose to defer any decisions on when to pivot to an easing bias until more clarity emerges.

Higher for longer…. again!

http://www.martinnorth.com/

Go to the Walk The World Universe at https://walktheworld.com.au/

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Kiwis Faced With Higher For Longer Rates Stuck At 5.5%!
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DFA Live Replay Q&A: A Deep Dive On Post Codes Feeling The Pinch

This is an edited version of a live discussion, as we look at the post code detail from our recent surveys, as the third part in our latest series.

See the basis of our analysis here: So Who Is Really Feeling The Pinch? https://youtu.be/xvE-jPsGQUk

See the mapping of our data here: Mapping The Pinch: Where Households Are Hurting The Most… https://youtu.be/Y-xycboQ1j4

Go to the Walk The World Universe at https://walktheworld.com.au/

https://digitalfinanceanalytics.com/blog/dfa-one-to-one/ for our One to One Service.

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
DFA Live Replay Q&A: A Deep Dive On Post Codes Feeling The Pinch
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