5 Articles – An analysis

Josh Greenstein

Article 1:

‘What will the Australian property market look like in 20 years?’ Jul 2, 2016

Johanna Legatt,

http://www.news.com.au/finance/real-estate/buying/what-will-the-australian-property-market-look-like-in-20-years/news-story/17765fcc3701e0daca2389047d064afe

The article takes the opinion and research of several high profile economists and property experts from around the country to predict what they believe the Australian property market will look like in the year 2040.

One economist, Niro Thambipillay believs prices will continue to soar, and be “at least 50 per cent higher than what they are today, if not closer to double.” With Australia’s growing population in concentrated areas, Thambipillay believes, the ‘cities will become extremely apartment dominated, similar to New York with fewer people living in houses.’

Founder of residential property investment firm Meridian Australia Glenn Piper said Sydney was most likely to stay out in front. “Anything could happen over a 20-year period, however, it would be hard to see any city top Sydney for the most expensive city in Australia,” Piper said. “It is Australia’s largest economy and has the Sydney Harbour where the most expensive homes in Australia are located.”

Large regional areas like Tamworth, Orange, Wagga Wagga, or Goulburn will also experience high levels of growth.

“If you can’t afford where you want to buy today, it’s important to look at other options and alternative locations for where you can invest with your budget and capture a foothold in the market,” he said. “That way you can go back and use those properties that you’re buying today to reach your end goal.”

Basically, get in now.

Questions:

1. Who is the author? Who is she/her writing for? Do they belong to a professional body? Are

they trustworthy?

Johanna Legatt, writes a lot of book reviews, and some proper and food pieces. Works for the guardian and I would say pretty trustworthy.

2. What motivated the author to write the article? If the author is a regular contributor to the

secondary source, are they an expert? Think about what might constitute an expert?

The author called in experts from the field to give their opinion and knowledge.

3. Has the author written about this issue before? In what context?

Not particularly

4. How would you classify this article? Is it factual, opinion based, editorial, rigourous, well

researched? Is there a particular bias present?

It’s largely opinion based, but because of the outside opinions it’s also pretty well researched. It’s futuring so there’s no real way to know.

5. Describe the author’s position? Do you agree or disagree with the author? How does the

author’s position compare to other authors? Is this position common or marginal?

The author shows a difficult time ahead for those trying to break into the property market in Sydney. I think this is a fairly common opinion amongst most people today. Being barely able to afford lunch each day, I would definitely agree with this authors opinion.

Article 2:

‘House prices in Sydney are still rising at insane levels’

David Scutt, Jul 1, 2016

Business Insider Australia

http://www.businessinsider.com.au/house-prices-in-sydney-are-still-rising-at-insane-levels-2016-7

House prices in capital cities are going up by .5% a month. Since this time last year, they’re up 8.3%. In Sydney, prices grew by a further 1.2% in June, taking the quarterly increase 6.8%.

From January 2009, ‘dwelling values’ have jumped 87% – the highest in the country.

The house price to income ratio is now at 8.2. That’s 8.2 times the median annual household income to buy a median valued property in Sydney, and 6.8 times for Melbourne.

“Australia’s two largest cities are facing increased affordability challenges that are likely to negatively impact the trajectory of dwelling values and activity as more prospective buyers are blocked from the market,” he says.

Although it’s yet to impact on house price growth, Lawless suggests that there’s signs this may already be occurring in Sydney.

“Some positive news for Sydney buyers is that there are early signs that Sydney’s housing market may be starting to turn in favour of the buyer,” says Lawless. We’re seeing homes in the city taking longer to sell and vendors are starting to offer larger discounts on their asking prices in order to make a sale. The typical Sydney home is now taking 40 days to sell compared with 26 days a year ago and discounting rates have risen from 5.5% a year ago to 5.6%.

Questions

1. Who is the author? Who is she/her writing for? Do they belong to a professional body? Are

they trustworthy?

David Scutt, Markets and economics reporter for Business insider. I would say very trustworthy.

2. What motivated the author to write the article? If the author is a regular contributor to the

secondary source, are they an expert? Think about what might constitute an expert?

He writes a lot about finance and economics in Australia. I couldn’t find info on his education but one would have to assume he is an expert in these fields.

3. Has the author written about this issue before? In what context?

Yes plenty. Writing for Business Insider this is one of many articles he has written on the matter of housing affordability. Many of his articles point to similar conclusions, the Sydney property market is increasing in value.

4. How would you classify this article? Is it factual, opinion based, editorial, rigourous, well

researched? Is there a particular bias present?

It’s entirely factual and well researched. Being black and white with figures helps illustrate the point the author is trying to make.

5. Describe the author’s position? Do you agree or disagree with the author? How does the

author’s position compare to other authors? Is this position common or marginal?

The author somewhat dampens the hysteria behind the housing affordability problem by saying there are two sides to every story.

Article 3: 

‘Sydney’s housing affordability crisis for low income earners is spreading, Anglicare finds’

Leesha McKenny and Inga Ting, April 21 2016

Sydney Morning Herald

Available online

http://www.smh.com.au/nsw/sydneys-housing-affordability-crisis-for-low-income-earners-is-spreading-anglicare-finds-20160419-go9tje.html

The article shows the case of Matthew Lytham, who moved from Ryde to Illawarra last year and is struggling to find affordable housing. Struggling to find work, Mr Lytham has been living at the local backpackers hostel in Wollongong.

The article demonstrates how the struggle to find affordable rental properties in Sydney is now spreading down the coast. Anglicare’s 2016 Rental Affordability Snapshot, which looked at almost 15,000 rental listings advertised across one weekend earlier this month, found that only about 1 per cent of offerings in the Illawarra were considered appropriate and affordable for those on government income support payments.

This compared with almost 3 per cent of listings at the same time last year and a consistently low figure of 0.5 per cent or less in greater Sydney.

Questions

1. Who is the author? Who is she/her writing for? Do they belong to a professional body? Are

they trustworthy?

Leesha McKenny is the urban affairs reporter for SMH and I feel like this is right in her wheelhouse.

2. What motivated the author to write the article? If the author is a regular contributor to the

secondary source, are they an expert? Think about what might constitute an expert?

This story may have been written by the author to help publicise the seriousness of this issue and help bring to light the issues affecting so many people struggling to find affordable living in or near our city.

3. Has the author written about this issue before? In what context?

McKenny has written several interesting articles on this issue, spanning the full breadth of housing issues in Australia. Issues facing the wealthy in Darling Point to issues for an increase in parks in Sydney.

4. How would you classify this article? Is it factual, opinion based, editorial, rigourous, well

researched? Is there a particular bias present?

This article is very factual but it employs a bit of human narrative to perhaps contextualise the issue for the reader.

5. Describe the author’s position? Do you agree or disagree with the author? How does the

author’s position compare to other authors? Is this position common or marginal?

It’s hard to argue with the numbers in place in this article, and it paints a pretty bleak image for one trying to get into the Sydney property market, renting or buying.

Article 4:

‘We need a fairer plan for Sydney’s housing affordability problem’

Nick Grenier, July 27 2016

SMH

http://www.smh.com.au/comment/how-to-fix-sydneys-housing-affordability-problem-20160725-gqd42f

There is a long term decline in home ownership. It is apparent that the Australian dream will increasingly be out of reach for people in the lowest 40 per cent of incomes. Particularly in NSW where the population will double.

“Value sharing”, or inclusionary rezoning, is one part of the solution that state and local government should adopt. Value sharing is the inclusion of a percentage of affordable housing in new developments where development is contingent on government intervention through rezoning.

Social housing can only do so much, and generally only helps the bottom 5 per cent of the population, and no one in full time employment. There’s this gap in the middle where people simple cant afford to live anywhere.

We need an approach that leverages private investment, using community housing providers as the experts at managing the tenancies and properties and uses the powers of government to support and create the necessary scale.

Value sharing, phased in and considered, can be integrated easily into the booming construction industry which is the basis of so much of Sydney’s current prosperity. Currently the gap between social housing and market rental is so great that there is a perverse incentive to stay in social housing. Affordable housing provides a step out of welfare dependency.

Questions

1. Who is the author? Who is she/her writing for? Do they belong to a professional body? Are

they trustworthy?

Nick Grenier is a former NSW premier – writing for SMH – very trustworthy

2. What motivated the author to write the article? If the author is a regular contributor to the

secondary source, are they an expert? Think about what might constitute an expert?

With a genuine interest in the subject matter – and experience in important social and political issues

3. Has the author written about this issue before? In what context?

Doesn’t really write much – but has a lot of history with these issues

4. How would you classify this article? Is it factual, opinion based, editorial, rigourous, well

researched? Is there a particular bias present?

Editorial, fact based but pushing an agenda – very political

5. Describe the author’s position? Do you agree or disagree with the author? How does the

author’s position compare to other authors? Is this position common or marginal?

Pushing an idea – value sharing is an idea started in the early 2010s and seems to benefit a particular income bracket.

Article 5:

Number of million-dollar suburbs soars in wake of housing boom

Andrea Papuc, SMH

Aug 5 2016

http://www.smh.com.au/business/property/number-of-milliondollar-suburbs-soars-in-wake-of-housing-boom-20160804-gqljtz.html

There were 613 million-dollar suburbs across Australia by the end of June, 29 per cent more than a year earlier as declining interest rates and demand from property investors pushed up prices, according to a CoreLogic report that was published on Thursday.

• NSW has just over 68 per cent of all national suburbs with a median home value of at least $1 million, up from 60 per cent in 2008

• Victoria increased its proportion of million-dollar suburbs to almost 17 per cent from about 14 per cent in 2008

• The proportion for Queensland and WA declined as the end of the mining investment boom depressed home prices in those states

“While overall housing demand may be slowing a little, we expect that with historic low interest rates, demand for premium housing is set to remain buoyant over the coming year,” Kusher said. He said that he expects even more suburbs to surpass the psychological $1 million mark over the next 12 months

Questions

1. Who is the author? Who is she/her writing for? Do they belong to a professional body? Are

they trustworthy?

Andreea Papuc, writes for Bloomberg, writes a lot about economics, and house prices around the world – and a keen interest in the Asian markets.

2. What motivated the author to write the article? If the author is a regular contributor to the

secondary source, are they an expert? Think about what might constitute an expert?

Papua wrote the article because of the recent release of the report into Australian median home prices. It seems as though she is quite an expert in the matter, perhaps in economics in a broader sense, due to the breadth of her articles on the matter.

3. Has the author written about this issue before? In what context?

Not house prices in particular, but certainly a lot about global economy.

4. How would you classify this article? Is it factual, opinion based, editorial, rigourous, well

researched? Is there a particular bias present?

I would say this article is entirely factual, because of its link with the original report.

5. Describe the author’s position? Do you agree or disagree with the author? How does the

author’s position compare to other authors? Is this position common or marginal?

Seeing as the author is merely rewording information from a report, it’s a bit hard to determine a particular stance or bias in place. Having said that, it’s clear to see how similar all of these reports are in their findings: The Sydney property market, despite its current level of craziness, is only going higher and higher.