I don't think there is too much correlation between the two - its not quite rational, but IMHO that's the way it is.
House prices in parts of Australia are yielding 3% rent or so - and the more asset prices increase, the more the yield decreases. I buy NOTHING on a 30 - 50 year payback...
The rent paid buy tenants can't increase in step, as this money would need to come from wages - which are absolutely on the decline... and no bank will sustainably lend a tenant rent money...
This leaves the balance of house investment returns coming from capital appreciation - of which greater than CPI is simply unsustainable over time [again, where does the money come from?] - unless we all subscribe to the 'bigger fool' theory - which, if true, effectively makes the Australian housing market one huge government backed ponzi scheme... they havent had happy endings yet ... ever ...
Commercial tenants are meanwhile paying 8% - 9% yields on office properties. Yet, its commercial that has had its face value punished... even though the tenant is of better quality and longevity - not to mention much more sound operational KPIs !
I guess banks may place a massive risk premium reduction on the emotional capital that owners invest in their caves.
Nope, I don't see the link between commercial and residential... wish there were though - that would seriously boost REIT values IMHO!
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Last
$4.17 |
Change
0.050(1.21%) |
Mkt cap ! $7.987B |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 13853 | $4.17 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.18 | 150952 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 13853 | 4.170 |
5 | 212639 | 4.160 |
6 | 115146 | 4.150 |
3 | 45190 | 4.140 |
2 | 11198 | 4.130 |
Price($) | Vol. | No. |
---|---|---|
4.190 | 123360 | 4 |
4.200 | 40004 | 5 |
4.210 | 101965 | 4 |
4.220 | 21589 | 2 |
4.230 | 10397 | 2 |
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