Sydney and Melbourne values continue to increase

Sydney and Melbourne values continue to increase

Posted on Monday, September 29 2014 at 1:01 PM

The Sydney and Melbourne markets have continued to shine in the month of August, according to new data from Onthehouse.com.au.

The Sydney property boom is still under way, with
house prices rising by 1.52 per cent over the past month.

The Melbourne house market also rose by 2.31 per
cent in August, which is the highest monthly growth rate seen in this market since March,
2013. Growth in the unit market
was also positive in August, at one per cent.

However, the overall national growth
rate has slowed, with growth in the house market falling from 0.86 per cent in
July to 0.02 per cent in August. Growth in the unit market has also dropped
during the same time period, from 1.62 per cent to  -0.37 per cent.

The Brisbane and Perth house markets recorded the worst rates of growth in
August, with values dropping -1.70 per cent and -1.84 per cent respectively.

Consulting analyst for Onthehouse.com.au, John Edwards, says the Brisbane
housing market continues to defy the growth trend seen across other capital
city markets.

“Brisbane now offers an attractive affordable-lifestyle balance – and as
the Queensland Government repairs its balance sheet, job opportunities and
housing values will begin to increase,” he says.

“Melbourne has seen an unexpected increase in its August growth figures.
This is due to a predominately auction driven selling process that results in a
more volatile market. The quarterly trend report suggests that this number is
probably unsustainable, and I expect a more moderate growth rate to resume in
September.

“The Sydney market does seem to be slowing, although not as quickly as we
expected. Taking into account the median household income, the affordability
measure is now at historic heights, with loan repayments taking about 54 per
cent of the after tax income.

“The current median house price is now only $147,500 away from breaching
the million dollar mark. At this rate, we expect to hit this median within a
five-year period.”

 

 

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/wwDZE3WFbZM/sydney-and-melbourne-values-continue-to-increase


Sydney apartments to have fewer car spaces

Sydney apartments to have fewer car spaces

Posted on Tuesday, September 23 2014 at 11:26 AM

Homebuyers and investors trying to break into the booming Sydney market might soon find many off-the-plan apartments have fewer car spaces.

It’s part of new guidelines being introduced by the NSW Government, in a
bid to get more people to use public transport.

Minister for Planning Pru Goward is promoting the concept as saving
buyers up to $50,000, or roughly, the cost of a car space in Sydney’s market.

She says the NSW Government’s record investment in better public
transport is giving Sydneysiders more choice in where they want to live and how
they get around.

“The closer people live to public transport hubs, the less likely they
are to rely on cars,” Goward says.

“A car space can add up to $50,000 to the cost of a new apartment, so
providing more flexibility around car park requirements could lead to savings
of up to the same amount for homebuyers.

“Importantly, this change is restricted only to particular councils,
applies only to development within close walking distance of transport services
and strongly discourages councils from allowing residents of these buildings to
receive street parking permits.”

The areas include Ashfield, Auburn, Bankstown, Botany Bay, Burwood,
Canada Bay, Canterbury, City of Sydney, Hurstville, Kogarah, Lane Cove,
Marrickville, Leichhardt, North Sydney, Parramatta, Randwick, Ryde,
Strathfield, Waverley, Willoughby and Woollahra.

Updates to the policy and apartment design guidelines include:

–       Ensuring every new apartment has a balcony
and access to well-designed and functional shared open space

–       Allowing no car spaces in new apartment
buildings in certain council areas within 400 metres of a transport hub like a
train station or light rail stop

–       Greater protections from noise in
surrounding streets

–       More flexibility around design to suit
particular sites

–       Independent design experts to provide
advice to councils

–       Extension of the policy to include mixed
use and shop-top housing

–       A minimum size of 35 square metres for
studio apartments

–       New sections dealing with the adaptive reuse
of buildings to apartments.

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House price growth far from over


House price growth far from over

Posted on Monday, September 22 2014 at 12:58 PM

The housing market recovery is far from over according to this year’s national outlook report by SQM Research with growth forecast to continue for the remainder of 2014 and into 2015.

SQM
Research predicts continued price rises for Sydney of between eight to 12 per
cent.

The
forecast takes into account where the economy is steady, interest rates remain
unchanged and the AUD stays above US85 cents.

The
SQM Research base case forecast for the remainder of 2014 and 2015 is:

 

 

SQM
Research managing director Louis Christopher says the market is somewhat
overvalued.

“But
not by as much as what some have very publicly stated,” he says.

“I
don’t believe at this stage the market is in a bubble. Some cities are heading
into overvalued territory, but the point overall is the market is far from a
bubble situation when taking into account historical valuations over the past
30 years.”

 

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    First homebuyer numbers continue to fall


    First homebuyer numbers continue to fall

    Posted on Wednesday, September 10 2014 at 1:48 PM

    The Real Estate Institute of Australia (REIA) says the Australian Bureau of Statistics (ABS) July 2014 housing finance data shows first homebuyer activity is at a record low.

    Peter
    Bushby, president of the REIA, says the softening is becoming entrenched.

    “The proportion of first home buyers, as part of the total
    owner-occupied housing finance commitments, fell to 12.2 per cent compared to
    13.2 per cent in June.

    “This is the lowest since the series commenced in July 1991.”

    Bushby says the rest of the ABS numbers show relatively flat performance
    for the month.

    “In
    trend terms, the number of commitments for new dwellings purchases increased by
    1.3 per cent while construction of new dwellings decreased three per cent and
    the purchase of established dwellings decreased by 0.1 per cent.”

    Investors
    again showed they are a driving force in property across the nation, Bushby
    says.

    “The
    value of investment housing commitments again increased by 1.2 per cent in
    July, following over three years of consecutive monthly increases.”

    Bushby
    believes the fall in first homebuyers should be more worrying for policymakers.

    “This figure for first homebuyers is very concerning and governments
    need to look at the issues impacting on this important group.

    “There’s a chronic under-supply of housing, and added to this, many
    state and territories have abolished homebuyer grants for established dwellings
    which has further undermined the confidence this group needs to enter the
    market.”

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      Victorian first homebuyers receive half-price stamp duty


      Victorian first homebuyers receive half-price stamp duty

      Posted on Wednesday, September 03 2014 at 3:32 PM

      Qualifying first homebuyers in Victoria now receive a 50 per cent discount on their stamp duty as part of a phased in scheme.

      A
      final 10 per cent increase in the concession this week completes a stepped
      programme initiated in July 2011.

      According
      to the State’s treasurer, Michael O’Brien, the move will stimulate activity in
      the sector.

      “This makes home ownership more affordable,
      especially for young Victorians looking to buy their first home.”

      The concession applies to the purchase of new
      or established homes valued below $600,000.

      According to the Government, almost 60,000
      eligible first homebuyers have benefited from the stamp duty concession in
      Victoria since it was introduced.

      “This tax cut will save 26,000 Victorians
      around $200 million over the next year.

      “This boosted stamp duty concession will make
      home ownership more affordable and support jobs by stimulating the housing
      construction industry.”

      O’Brien says the Government is providing
      further support with the $10,000 First Home Owner Grant (FHOG) for newly
      constructed homes.

      The FHOG applies in addition to the stamp
      duty concession, but does not include established home purchases.

      “From 1 September, an eligible first home
      buyer purchasing a new $600,000 house and land package will receive a combined
      stamp duty cut and FHOG worth $25,535.”

      Source: State Revenue Office of Victoria

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        Perth market remains steady

        Perth market remains steady

        Posted on Friday, August 29 2014 at 4:30 PM

        Perth’s median house price remains steady for the month of August according to data from the Real Estate Institute of Western Australia (REIWA).

        REIWA
        president David Airey says sales turnover has slumped but metropolitan prices
        showed no movement, remaining at $540,000.

        “Turnover for houses is down by almost 25 per
        cent for the three months to August, however there’s always a seasonal dip in
        sales during the winter months and this tends to pick up as we head into spring
        weather,” he says.

        Sales were weakest through the cities of Stirling,
        Fremantle, Vincent, Kwinana and the western suburbs. Low consumer confidence has
        had an impact on the market according to Airey.

        “The number of properties on the market is up by
        one per cent for the month of August,” he says.

        Listings
        increased the strongest through the cities of Bayswater, Bassendean, and the City of Vincent. Listings through the northern end
        of Joondalup fell most strongly.

        The
        rental market shows signs of stabilisation, says Airey, with no change in the
        median rent.

        “This is steady at $450 per week despite the
        high vacancy rate of 4.2 per cent in the three months to August,” he says.

        The number of rental listings is up by 47 per
        cent on the same time last year, with 5903 properties currently on the market.

        “While these listings came down a little for the
        month of August, they had increased through June and July by around 10 per
        cent. Many of these new rentals were through Joondalup, Wanneroo, Armadale and
        Cockburn,” Airey says.

         

        Article source: http://feedproxy.google.com/~r/API_Property_News/~3/Ap3qoIT41MA/perth-market-remains-steady


        Top affordable inner city suburbs

        Top affordable inner city suburbs

        Posted on Friday, August 15 2014 at 1:31 PM

        They say buying the right property close to the CBD pays. But generally property prices in these central locations can hurt the hip pocket in comparison to purchasing further afield. Investors and owner-occupiers could be delighted by RP Data’s latest findings revealing affordable inner city suburbs do still exist.

        RP
        Data research analyst Cameron Kusher highlights the top five most affordable
        suburbs for houses and units within 10 kilometres of Australia’s capital
        cities.

        “Inner city suburbs are also generally better
        serviced by both essential and desirable amenities such as schools, medical
        services, shopping centres, social amenity, roads and public transport
        infrastructure,”
        he says.

        There’s a large divergence in results across the
        cities, when looking at the most affordable median value suburbs in close
        proximity to the CBD. Sydney’s Wolli Creek, for example, has the lowest median
        house value at $710,303 (which is not very affordable) but in Melbourne the
        most affordable suburb is Bellfield at $533,252. In most other capital cities,
        except for Darwin the starting point for a house is significantly lower.

        In many cities these areas are less desirable
        than other inner city suburbs however they’re close to the city and potentially
        have scope for urban renewal over the coming years says Kusher.

        “Home values in inner-city areas are likely to
        continue to increase particularly as mortgage rates remain at such low levels,”
        he says.

        And as a result more and more potential buyers
        are likely to be priced out of the inner city housing market.

        “This scenario creates good opportunity for
        other city areas – if buyers can’t afford to purchase a home within the inner
        city, they will most likely look to those locations that tick as many of the
        inner city boxes, just at a lower price point than the inner city areas,” he
        says.

        “Given this, suburbs featuring quality public
        transport connections, abundant retail and social amenity, quality schools and
        medical amenity will likely see renewed interest as inner city buyers look to
        these more affordable alternatives.”

         

        Most affordable
        suburbs within 10km of capital city CBDs

        (As of June 2014)

         

                                HOUSES                                                                   UNITS

         

         

         

         

         

         

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        Mosman home to number one million-dollar street

        Mosman home to number one million-dollar street

        Posted on Monday, August 25 2014 at 1:44 PM

        It’s no surprise Sydney is home to an increasing number of million dollar streets. And the blue-chip and highly sought after suburb of Mosman, on the Lower North Shore, has been revealed as one of the best destinations for million dollar houses.

        Raglan Street, which runs off the shopping precinct on
        Military Road and all the way down to the ferry terminal, is hot property and
        the number one street in all of Sydney and Australia, according to
        Onthehouse.com.au.

        Consulting analyst John Edwards says while Raglan Street is
        ranked the top street, the suburb of Mosman itself came in as the state’s 11th
        wealthiest for percentage of million-dollar homes (with 99.87 per cent of
        houses in the millionaire’s club).

        Balgowlah Heights, Clontarf, Cremorne Point, Duffys Forest,
        Henley, Huntleys Point and Huntleys Cove all ranked joint first on the scale,
        with a hit rate of 99.99 per cent.

        “It’s no surprise to see so many of New South Wales’ suburbs
        housing some of Australia’s most expensive properties,” he says.

        “Within the top 10, no suburb drops below 99 per cent, and
        while Mosman didn’t make the top 10, the fact it hosts Australia’s number one
        street cements its position as one of Australia’s most prosperous localities.”

        He adds you don’t necessarily have to live in Mosman or
        Vaucluse to boast a million dollar home anymore either.

        “Many more properties are breaking through the million
        dollar value. The fact is, many of our property millionaires may not even know
        the value of their property. Based on our findings, we expect to see more
        suburbs emerge as millionaire property hotspots over the coming year.

        “It was interesting to note that Castle Hill topped the
        chart as the suburb with the largest increase in million dollar properties over
        the last 12 months, closely followed by Ryde, Epping, Cherrybrook and
        Carlingford.”

         

         

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        Million dollar smiles


        Million dollar smiles

        Posted on Friday, August 22 2014 at 1:15 PM

        Australia’s million-dollar property club has exploded to 417 suburbs with a median value of $1 million or more.

        As of June this year there were 397 suburbs nationally with a median
        house value in excess of $1 million and 20 suburbs for units. The 417 total
        suburbs with a median value of $1 million or more is the highest number over
        the past five years. Sydney led the pack claiming the majority of market share
        with 22 suburbs ranked in the top-performing list out of 25.

        RP Data’s findings
        show values have increased by 10.2 per cent over the 12 months to July 2014. RP
        Data research analyst Cameron Kusher says the large rise in the numbers of
        suburbs with a $1 million or more median in NSW alone is reflective of the
        strong home value growth in Sydney over the past year.

        “Sydney home values have increased by 14.8 per cent over the 12 months
        to July 2014,” he says.

        “Proportionately, Sydney suburbs comprise 61 per cent of all million dollar
        plus suburbs nationally, followed by Melbourne at 14 per cent and Perth at 12
        per cent.”

        Significantly the number of suburbs with a median value of more than $2
        million has also increased to 42 suburbs from 37 suburbs last year.

        The number of suburbs with a  $1
        million median house price is up 42 per cent over the year in New South Wales.
        There’s been a 24 per cent rise in Victoria, 25 per cent increase in
        Queensland, 44 per cent rise in South Australia, 22 per cent rise in Western
        Australia, no change in the Northern Territory and a 11 per cent fall in the
        Australian Capital Territory. And Tasmania has zero suburbs with a median value
        of $1 million or more.

        And the rise in suburbs with a million-dollar plus price tag is good
        news for those who own a property in these areas. Kusher says low mortgage
        rates have been creating a surge in market activity and higher values,
        particularly in Sydney, is becoming more prevalent.

        “Although we anticipate the rate of value growth is likely to slow over
        the coming year, we do expect further increases,” he says.

         

        Number of suburbs
        with a median value of $1million or more – to June

                               Jun- 12                       Jun-13                      Jun-14

         

         

         

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          Rental market continues to slow


          Rental market continues to slow

          Posted on Wednesday, August 20 2014 at 4:08 PM

          Data released by a leading analyst confirms an overall slowing in the national rental market.

          A
          report by SQM Research says their latest analysis of rental vacancies and
          asking prices shows the number of residential vacancies nationally decreased
          slightly during July, recording a stable vacancy rate of 2.3 per cent
          nationally.

          “Higher
          vacancies of course, allude to an increase of supply in the rental market,
          shifting the balance of power from landlords to tenants,” the report says.

          On
          a city-by-city basis, the results were mixed with Perth and Darwin’s vacancies increasing
          since July 2013, and Hobart’s dropping dramatically over the same period.

          Sydney
          and Melbourne have remained flat while Brisbane has seen a rise over the 23-month
          period.

          SQM
          Research’s Asking
          Rents Index
          revealed rental asking prices have only lifted by 0.7
          per cent for houses and 0.6 per cent for units nationally since the same week
          in 2013.

          “This
          reveals that the expectation of landlords has stagnated on a national level,
          with Darwin and Sydney being the only two capital cities to record substantial
          increases in asking rents since this time last year, and Perth and Canberra
          both recording considerable decreases during the same period,” the report says.

          Louis
          Christopher, managing director of SQM Research says they expect the market to
          continue to weaken.

          “The
          rental market overall remains sluggish with asking rents showing rises of just
          1.2 per cent to 1.7 per cent at the average capital city level.”

          Christopher
          says Perth’s rents have dragged down the overall result.

          “It’s
          quite clear rents in Western Australia are falling quickly.

          “Given
          our view that vacancy rates are likely to rise from these levels, we are
          expecting a soft rental market for quite some time and certainly, well into
          2015.”

          The
          full results as published on www.sqmresearch.com.au are:

           

           

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