Tuesday, November 2, 2010

In Australia, Signs of Overheating

In Australia, Signs of Overheating
Another test will come at the landmark Sydney Opera House on Monday, when real-estate agency Ray White Ltd. holds an auction of 11 luxury dwellings, 10 in New South Wales, one in Queensland. The firm hopes the iconic venue will help persuade the invited bidders, mainly Asian, to snap up the properties, some for as much as 10 million Australian dollars (US$9.9 million).
Average Australians are increasingly being priced out. According to an international housing-affordability survey, from the Wendell Cox Consultancy, the country has the highest ratio of home prices to gross median household income in the world. 
Someone has to step in and buy the next house when the foreign investors slow buying in. Who's it gonna be?

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