From Four Corners copied for the record! It’s crook! (ed)
Going, Going, Gone: What’s driving Australia’s property frenzy
“I just don’t believe how much prices have jumped. These prices are far exceeding what I think is a fair and reasonable market price.” Buyer’s agent, Sydney
Across Australia, property prices are going through the roof, pushing the total value of residential real estate to a staggering nine trillion dollars.
“It is definitely the hottest market I’ve ever seen with the low supply, the lower interest rates and the cost of borrowing, money being so cheap.” Real estate agent, Brisbane
When the pandemic hit in 2020, there were fears the property market would collapse. Instead, house prices have risen at the fastest pace in at least three decades.
“We thought it would stop for a pandemic, but it hasn’t. I think it’s gone against all the experts and predictors out there; it just keeps going.” Auctioneer, Melbourne
City prices are eye watering, and the phenomenon is spreading. As people seize the chance to work from home, a stampede of buyers has sparked a property buying frenzy in regional Australia as well.
“Properties in Tasmania are literally selling within around about 48 hours. I’d say that for every property that we sell, we could probably sell it 10 times over.” Real estate agent
On paper, it’s made many homeowners across Australia millionaires. In reality, it’s seen buyers mortgaged to the hilt, while others are priced out altogether.
“The great Australian dream has been about home ownership. It’s now become a lot of people’s nightmare.” Housing policy expert
On Monday, Four Corners tracks the property price boom that’s fuelling risky and irrational behaviour and investigates what is driving it.
“People are buying property sight unseen from another state. People are waiving their rights to finance…they’re not doing building inspections…there’s a lot of people taking a lot of risk.” Buyer’s agent, Tasmania
For many people, the housing market has become unaffordable and it’s creating a generational divide. Home ownership among those under the age of 45 has plunged to levels not seen since the 1950s.
“For my generation it means a lot less home ownership. I feel it’s very unfair.” Sydney home hunter
There’s a sense of despair and disillusionment from many who have worked and saved, only to see their dream slip out of sight.
“I did everything right. I did everything that every politician has ever told us to do… The situation’s left me feeling completely defeated.” Nurse, Tasmania
As the divide between the haves and have nots grows, housing experts warn there will be consequences.
“Housing has become, rather than a place of security where you raise a family, something that you seek to create wealth from and speculate on. So, that is a really big shift over the last 40 years. And it’s one that I don’t think will serve the future well.” Housing expert
Going, going gone, reported by Stephen Long, goes to air on Monday 1st November at 8.30pm. It is replayed on Tuesday 2nd November at 1.00pm and Wednesday 3rd at 11.20pm. It can also be seen on ABC NEWS channel on Saturday at 8.10pm AEST, ABC iview and at abc.net.au/4corners.
1st November, 2021
GOING. GOING, GONE.
ADRIAN PISARSKI, EXECUTIVE OFFICER, NATIONAL SHELTER: The great Australian dream has been about home ownership; it’s now become a lot of people’s nightmare.
ELLY CLARK, HOMEBUYER: The last zoom auction we were on, we had 28 people registered to bid and it went nearly a million dollars over the guide….