U.S. Residential Real Estate Flourishing Amid Market Crash Outlook, Australia's Housing Development Frenzy
Contrary to indicative inflationary factors, there is evidence for the stability of the real estate market in the West and Australia.
Although the U.S. government recently reported an increase in housing inventory, the market might have to wait to feel the impact, as the jump was driven by yet to be built homes. Housing market momentum is expected to slow given surging prices and tight supply, however economic indicators are not pointing towards a crash, but instead towards sustained growth.
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Australia's housing market has also showed no signs of slowing, with New South Wales experiencing an abundance of new housing developments. Singapore has also contributed significantly to the strong growth in Australia, and are now the second-largest buyer of Australian real estate, and third-biggest source of foreign investment for Australia.
What caught our eyes this month?
U.S. New Home Sales Creep Up; Supply, Prices Remain Constraints
Reuters – Though the U.S. Commerce Department reported a big increase in new housing inventory, the jump was driven by a record rise in homes that are yet to be built. Builders are taking longer to complete houses, hobbled by expensive raw materials as well as scarce land and workers. High prices and backlogs in construction are also expected to temper sales in the coming months, according to Oxford Economics.
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Is Residential Real Estate Headed for a Crash?
Forbes – Whether the housing market is headed for an imminent crash has been discussed extensively given recent meteoric rises in prices. However, considering the housing market's economic indicators, the housing market is actually looking optimistic. Rapid increases in housing prices are not behind headline inflation figures, and housing demand is consistently outpacing supply.
New Developments Explode Across Sydney’s Fringe
The Urban Developer – There is a huge number of new masterplanned communities in various states of development across New South Wales (NSW), with areas to the north-west and south-west of Sydney experiencing the greatest activity. Civil works and construction are under way across a large number of new estates, while in other areas, land parcels are being released to the market in stages.
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Singapore Has Bought Almost AUD 20 Billion Worth of Australian Real Estate in the Last Two Years, Eclipsing China
Business Insider – Singapore investors bought up AUD 19.3 billion worth of Australian real estate in the two years to July 2020, AUD 6.1 billion more than China. Singapore is now the second-largest buyer of Australian Real Estate, behind only the United States. The investments were led by institutional investors such as GIC, however individual home buyers also made up a significant portion.
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One in 10 London Offices Are at Risk of Becoming 'Obsolete' Under New Energy Rules
CNBC – Under new energy standards set to be introduced in 2023, buildings in England and Wales with an energy efficiency rating lower than ‘E’ will not be able to close new leasings. The upcoming measures come as part of broader government efforts toward carbon neutrality. Approximately 20 million sq ft, or 10% of London workspace, are not currently compliant with the new standards.
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Vantage Point is a curated cache of the latest trends in real estate investing repurposed from media outlets and websites around the globe. Each article is a succinct wrap-up of key news points for an easy read. Outbound links, embedded in each editorial, are attributed to original external sources. RealVantage makes no warranties or representations regarding the accuracy, completeness or veracity of the information or data contained in such external sources. Editorials under the Vantage Point vertical do not reflect the views of RealVantage, in part, or in its entirety.
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