July in review:
Updated: Nov 11, 2022
The simple tale of Chicken Licken relates to the title character going out for a walk in the woods one day. On the way, he is hit on the head as an acorn falls out of a tree. The hapless fowl mistakenly believes the sky is about to fall, so sets off to warn the king. Along the way our chicken friend tells everyone of the impending doom of the sky falling. The phrase, "The sky is falling!" features many times in the tale of Chicken Licken. It has become part of the English language as an idiom describing a mistaken and hysterical belief that disaster is imminent. What I take from this is be wary of who you listen to and what "spin" they put on a negative.
End of July results show an overall negative growth in most capitals except Adelaide, Perth and Darwin.
I would expect to see some reductions in these number over the coming months with Sydney and Melbourne having a larger correction and mostly a minor correction in other cities.
Generally speaking the top end of town has the biggest swings in prices. The higher priced suburbs are normally first to shoot up and they lead the charge down when things aren't as positive. In these cities there will be many suburbs that continue to show positive growth during corrections which comes down to supply and demand.
It's no secret that construction prices have risen. "The significant spike in the cost of materials and trade labour will continue to produce a higher sale price. These significant constraints on supply are also starting to produce a reduction in supply volumes. These two property market metrics have a lifting influence on asset values." Simon Pressley from Propertyology.
Building approvals have been declining as sharply as building prices have been increasing. This only leads me to believe there is going to be reduced stock on the market putting upwards pressure on prices. On top of this in cities like Adelaide, where we conduct our property developments, are having sharp rental price increases and very low rental properties available.
Reach out if you are interested in how you can earn great returns from property development. Always happy to chat.