Increasing WA listings cool the market
Increasing WA listings cool the market
Posted on Wednesday, April 02 2014 at 11:05 AM
Sale rates are down and rental vacancies are up according to the Real Estate Institute of Western Australia’s (REIWA) preliminary property results for the first quarter of 2014.
David
Airey, president of REIWA, says there’s been a steady
market decline in recent weeks as the number of properties for sale rose.
“There was little
change in overall sales turnover for the quarter, down by only two per cent,
however, it’s noteworthy that the March quarter was down by about six per cent
on the same period last year.”
The numbers show the
largest slide in sales occurred in the City of Vincent, southeast
parts of the City of Stirling and the cities of Gosnells and Melville.
“Even so, sales were
patchy across Perth with some areas such as Fremantle, Rockingham and northern
Joondalup experiencing a lift in sales.
“Overall listings,
however, continue to rise and are now at their highest level since December
2012.”
The most recent data
shows listing numbers have risen by 861 properties to 10,067.
This reflects 1600
more properties available for sale when compared to the same time last year.
“For several quarters
the number of listings hovered around 8,500 properties, but now seem to be
trending back to a more usual 12,000.”
Airey believes softer
first homebuyer activity has played a major role in the cooler results.
“The first homebuyer
slow down helps explain the rise in listings because, unlike trade-up buyers
who exchange one home for another, first home buyers remove stock from the
market.”
The REIWA data also reveals rental demand is easing
with the vacancy rate for the three months to February lifting to 4.1 per cent
– its highest level in four years.
“It’s now a tenants’ market with much more stock
available and median rent coming down a little.
It has dropped $15 per week in the last 9 months
and I anticipate a further fall in the median weekly rent to show up in the
data over the next few weeks.”
Perth currently has around 5000 rental
properties on the market, up by 56 per cent on the same time last year.
“The March quarter normally experiences a
tightening in the vacancy rate, but not so this year,” Airey says.
REIWA’s data shows Perth’s median house price was up marginally from $546,000 in the
December quarter to around $550,000 in March.
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Real estate leads business confidence upswing.
Real estate leads business confidence upswing.
Posted on Tuesday, April 08 2014 at 9:54 AM
The real estate and finance industries recorded the strongest gains on Roy Morgan Research’s latest Business Confidence survey for March 2014.
Australian business confidence recovered slightly during the month,
which helped offset falls in confidence during February.
The increase of 3.3 points from February to a score of 120.6 puts business
confidence back above levels preceding the federal election in August 2013.
The survey is the result of 1511 interviews with businesses across all
industries, sizes and locations around Australia.
The modest recovery in business confidence was driven by an increasing
proportion of businesses reporting an improvement in their financial position
compared to 12 months.
The survey also showed a sharp increase in the belief that the next 12
months will be a good time to invest in growing a business.
Industries supporting the rise are real estate (up 1.8 points to 140.8),
professional services (up 2.1 points to 126.1) and wholesale trade (up 2 points
to 130.1).
Business confidence in the mining industry fell 16.9 points, although at
148.5 it remains the most confident industry in Australia.
The finance industry remained at a very high level of business confidence
at 142.6, though slightly down from February (-0.6 points).
On a state-by-state basis, the results were less glowing with all states
reporting a decrease in business confidence over the month except Victoria.
Nigel Smith, a director at Roy Morgan Research, says the results bode
well for property and banking.
“The resilience of business confidence in March 2014 appears to largely
reflect the strength of the finance and real estate industries, particularly in
Victoria.
“Recent figures showing a surge in new dwelling approvals for the
Melbourne CBD is most likely driving this, although the construction industry
in the state appears to have only moderately benefited from this strength.”
Smith says interest rates are having a direct impact on some of the best
performing industries.
“With the exception of the mining industry, it is notable that between
2011 and 2014 the industry that has consistently shown the highest business confidence
is the finance insurance industry – corresponding (with) a period of
historically low interest rates in Australia.
“If Australian interest rates do rise in 2014, business confidence in
this industry is likely to suffer a setback.”
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Small housing prices rocket in regional Victoria
Small housing prices rocket in regional Victoria
Posted on Friday, April 11 2014 at 9:36 AM
An appetite for smaller accommodation in regional Victoria is fuelling a price boom, according to the Real Estate Institute of Victoria (REIV).
Units
and apartments have recorded significant gains, with the median price growing
by 8.2 per cent to $262,500 in the three months to 31 March this year.
Enzo
Raimondo, CEO of the REIV, says this is the highest quarterly price rise for
smaller regional housing in almost a decade.
“Clearly
units and apartments are becoming increasingly popular as home buyers in
regional towns and cities look to one and two bedroom homes that meet their
needs.
“Sales of these homes were high for the
quarter, with more than 500 unit and apartment sales across regional Victoria.”
House prices also grew to a new median price
high of $322,000, however the growth over the quarter was lower than for units,
at 1.3 per cent.
Raimondo says the housing figure is up from a
median of $318,000 in the final quarter of 2013.
For housing, Benalla in the state’s northeast
recorded the most growth at 11.4 per cent in the quarter to a $235,000 median,
and West Wodonga recording a 7 per cent growth to reflect a median price of
$283,500.
In central Victoria, Creswick grew by 8.9 per
cent for the quarter to a median price of $288,500.
Mr Raimondo said that while the residential
property market has rebounded strongly in the past six months, it could
moderate over the course of this year.
“Record low interest rates have been driving
property price growth to date, but any movement in the interest rate or in
employment levels is likely to see a moderation in this growth.”
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WA rents rise strongest
WA rents rise strongest
Posted on Wednesday, April 09 2014 at 8:32 AM
Rents have risen more in Western Australia than any other state or territory according to recent analysis of 2011 census data by the Australian Bureau of Statistics (ABS).
Lisa Conolly, a director at the ABS, says WA
reported a 77 per cent increase between 2006 and 2011, with median weekly rent rising
from $170 per week to $300 per week.
“Local government
areas in WA recorded some of the biggest growth in median rent payments in
Australia, with eight out of the 10 fastest growing regions located in WA.”
Despite WA’s statewide
pole position, the town with the fastest rising rent wasn’t in the west.
“However, Weipa, in
far north Queensland, came in at the top, reflecting a change from employer-owned
housing to private rental arrangements.”
Local government areas in Greater Sydney
continued to have the highest median rents in Australia, with the highest in
Ku-ring-gai at $575 per week, and Woollahra at $550 per week.
In Victoria, Melbourne’s $400 per week median
and Bayside’s $390 per week result were highest.
“Nationally,
rental costs increased by more than mortgage repayments with the median weekly
household rent rising from $191 in 2006 to $285 in 2011 – an increase of 49 per
cent, whereas mortgage repayments have increased 39 per cent during this time.
“Rental
costs have also increased by twice as much as wages with the median weekly
household income increasing from $1,027 in 2006 to $1,234 in 2011, up 20 per
cent,” Conolly says.
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Pools deadline extended for landlords and sellers
Posted on Thursday, April 03 2014 at 1:10 PM
The New South Wales Government has extended the deadline for new rules that require a property with a swimming pool to have a certificate of compliance before it can be sold or leased.
Local
Government Minister Don Page announced today that the deadline had been pushed
out by a year to April 29, 2015.
From that
date, all properties with a pool or spa pool must have a valid swimming pool
certificate of compliance before they can be sold or rented. The certificates
are valid for three years.
This change
only applies to certificates for properties that are to be sold or leased.
All
backyard pools in NSW still have to be registered and fines are applicable for
the owners of unregistered pools.
“Councils
and real estate agents have requested more time to prepare properties to obtain
a compliance certificate before selling or leasing a property,” Page says.
“Councils,
especially in areas where there are many pools, have indicated they didn’t have
the resources to meet the deadline.’’
To check if your pool already has a certificate of
compliance, go to the Swimming Pools register, which is still open to register
existing pools and pools built in the future, at www.swimmingpoolregister.nsw.gov.au
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Melbourne set to become Australia’s largest city
Melbourne set to become Australia’s largest city
Posted on Friday, April 04 2014 at 8:58 AM
Data released by the Australian Bureau of Statistics (ABS) indicates Melbourne is set to have the largest population of all Australian capitals.
According ABS analysis, Sydney and Melbourne
each grew by almost 1.7 million people between 1973 and 2013, although the
overall growth rate for Melbourne was higher at 62 per cent compared with Sydney’s
54 per cent.
In their release, the ABS says if current trends prevail,
Melbourne is projected to overtake Sydney and become Australia’s largest
capital city by 2053.
The
analysis is part of a population growth study showing Australian capitals have
attracted three times more new residents than the rest of the country.
For
the 12 month to June 2013, the country’s population grew by more than 400,000 people
in total, to 23.1 million.
Australia’s
capital cities grew by a combined 313,000 during the period, while the rest of
the country grew by 94,000.
Denise Carlton, a director at the ABS, says there
is a historical bias by new residents to choose capital cities.
“In 2013, two in
three (66 per cent) of Australians lived in a capital city, a slight increase
since 1973 when 65 per cent lived in a capital.
“By 2053, this share
is projected to increase to 72 per cent.
“That equates to
28 million people living in the capitals in 2053.”
Melbourne and Sydney
saw the strongest growth over the 12 months to June with population increases
of 95,000 and 81,000 respectively.
Perth and Brisbane
were the next highest in terms of growth while Hobart saw the least number of
new residents.
In percentage terms,
the results were different, according to Carlton.
“Currently, Perth and
Darwin are the fastest-growing capital cities.
“Between 2012 and
2013, Perth grew fastest (3.5 per cent), followed by Darwin (3 per cent),
Melbourne (2.2 per cent) and Brisbane (2.1 per cent),” she says.
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New infrastructure to reduce flood impacts.
New infrastructure to reduce flood impacts.
Posted on Wednesday, April 02 2014 at 2:35 PM
The Queensland Government will consider constructing new dams and increasing Wivenhoe’s capacity in order to reduce the impact of flood events.
Premier
Campbell Newman said the locations of eight possible new dams have been
identified as the upper Brisbane River (near Linville), the Cooyar Creek (near
Benarkin National Park), Emu Creek (near Harlin), the Bremer River (near Mt
Walker), the Stanley River (near Peachester), Tenterhill Creek (near Gatton),
Lockyer Creek (near Murphy’s Creek) and Cressbrook Creek (near Kipper).
“This
is very early days and I stress to those landowners in the areas affected that
there is a lot of work that needs to be undertaken before any plans are
implemented.
“But
it is our duty to do whatever work we can to investigate all possible options,”
Premier Newman says.
The
proposal follows on from an announcement on changes to dam operation guidelines
during extreme weather.
Energy
and Water Supply Minister Mark McArdle said the government was looking to be
ahead of any future floods.
“Before
the next wet season, southeast Queensland residents should have confidence in
the fact that if there is a flood event, dam operating decisions will always
place greatest value in life, then people’s homes, businesses and livelihood –
and then public roads and bridges.”
Mr
McArdle said the Wivenhoe and Somerset dams would be upgraded over the next 10
years as part of Seqwater’s ongoing dam improvement program.
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Which NSW suburbs top national best-seller list?
Which NSW suburbs top national best-seller list?
Posted on Tuesday, April 01 2014 at 8:59 AM
While New South Wales can lay claim to Australia’s most in-demand markets, there was a strong showing by most states according to property website, realestate.com.au.
Arthur Charlaftis, a general manager at realestate.com.au, says their
data shows which suburbs have become the nation’s most watched markets.
“The top sellers’ markets looks at supply and demand in each suburb and
ranks the suburbs accordingly.
“A position in this list suggests that it could be a good time for
property owners in these areas to consider selling as there are a high number
of buyers looking for property in that suburb.”
The ranking is based on realestate.com.au’s internal data from December
2013 to February 2014 and relies on taking the average number of listings in
each suburb over that period.
The website then compares the number of clicks on property listings
against the number of available properties in that suburb to create a supply
versus demand ratio.
Suburbs are then ordered by the extent to which demand outstrips supply.
NSW had the most number of suburbs in the top 10 ranking, filling four
of the positions.
Coming in at number one is Balgowlah, about 10 kilometres north of the
Sydney CBD.
South Australia claimed two of the top 10 spots, compared to five last
quarter, while Victoria had three in the national list.
The Queensland suburb of Holland Park was the state’s only finalist,
coming in eighth.
Three Victorian suburbs have entered the national list this quarter,
compared to the website’s previous analysis.
Of all the suburbs, eight are newcomers with Balgowlah, Albert Park,
Frenchs Forest, Brighton, Fitzroy North, Holland Park, Ormond and Engadine all
making their first appearance.
Norwood in SA slipped from second position last quarter to third this
quarter, while Cherrybrook in NSW moved up from ninth to fifth.
The realestate.com.au top sellers’ markets for the three months are:
1. Balgowlah (NSW)
2. Albert Park (Vic)
3. Norwood (SA)
4. Frenchs Forest (NSW)
5. Cherrybrook (NSW)
6. Brighton (SA)
7. Fitzroy North (Vic)
8. Holland Park (Qld)
9. Ormond (Vic)
10. Engadine (NSW)
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Stamp duty savings helping buyers
Stamp duty savings helping buyers
Posted on Friday, March 28 2014 at 3:14 PM
Stamp duty is a significant barrier to people buying and selling a home in the Australian Capital Territory, according to the Real Estate Institute of Australia (REIA).
A housing affordability summit revealed the dreaded stamp duty
discourages people from making a move and, in turn, slows the turnover of
housing.
“This not only inhibits labour mobility, but also distorts choices
between renting and buying,” ACT Treasurer Andrew Barr says.
However, Barr believes the phasing out of stamp duty in the ACT, which
was part of a tax reform in 2012, is already saving homebuyers thousands of
dollars and will continue to help buyers in the future.
The ACT is now the only jurisdiction in Australia to have begun getting
rid of stamp duty, after it was recommended in the Henry Tax Review.
“The buyer of a $500,000 home is today saving about $3400 in stamp duty,
compared to before the start of tax reform,” Barr says.
The ACT Government has also:
–
reduced land tax on properties with average unimproved
land values between $75,000 and $390,000,
–
introduced variable thresholds for affordable
housing, based on dwelling size,
–
increased the property and income thresholds for
the homebuyer concession scheme.
These changes will mean even more homebuyers will only pay a minimal
duty of $20 when purchasing a new home up to the value of $425,000.
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Capital cities to perform in 2014
Capital cities to perform in 2014
Posted on Thursday, March 27 2014 at 11:45 AM
We all know Sydney had incredible growth in 2013, with house prices increasing by more than 15 per cent to February 2014, according to Onthehouse data (a property research arm of Residex).
But where does this leave the other capitals? Onthehouse is predicting
2014 will be the year for ‘other capital cities’ as the Sydney market
stabilises.
Consulting analyst for Onthehouse and founder of Residex, John Edwards, says
Sydney’s property market is a leading indicator for the national market.
“The good news for investors is that that while house price growth for
the balance of the year in Sydney will slow from here, other states and capital
cities are probably yet to reach their peak value for this growth period,” he
says.
Edwards predicts Sydney will stabilise because wages haven’t grown at
the same rate as property values.
“There’s a natural limit on the maximum value of an asset at any point
in
time and that’s the value at which the masses deem it to be
unaffordable,” he says.
“At that point, competition for the asset diminishes. In Sydney, the
trend data suggests that house prices are reaching their peak value in dollar terms,
for this period of growth.”
Other factors that might help the Sydney market stabilise include falling
consumer sentiment and rising unemployment fears.
“As consumer sentiment and affordability concerns affect buyers in
Australia, it’s expected that growth in Australia will slow down,” Edwards
adds.
“The Onthehouse data predictions show that Sydney’s annual growth over
the next five years will be four per cent, Melbourne three per cent and Perth three
per cent. Houses are also still expected to outperform units.”
However, buyers’ agent of propertybuyer.com.au Rich Harvey says the
Sydney market is all about supply and demand – and there’s still plenty of
demand.
“It’s simple, interest rates are continuing to fuel demand,” he says.
“There’s still strong investor enquiry and good activity in the
homebuyer market.”
In fact, Harvey helped a friend sell a townhouse in the Sydney suburb of
Dee Why just last week off market. It wasn’t even listed on the internet but competition
was still fierce among investors and homebuyers as it had four bedrooms.
“There were 130 enquiries off market, seven inspections and three solid
offers. They wanted over $800,000 and got $822,000.”
Harvey adds property should be seen as a long-term plan and investors
should try to hold a property for at least five years.
A Pain and
Gain RP Data report has also just been released.
It shows the lowest proportion of loss making re-sales are being
recorded in Sydney (3.6 per cent), Perth (4.3 per cent), Melbourne (six per
cent) and Canberra (7.4 per cent).
Some suburbs of Sydney have performed extremely well.
“There were no loss making re-sales over the quarter in Burwood and
Hunters Hill,” the report says.
Harvey says this report shows Sydney has the least amount of ‘losers’
and the highest number of people who make a profit when they sell, out of any
area in Australia. He believes the fundamentals for Sydney simply stack up.
“This year, we might see a moderation in price increases but there’s
nothing that will lead to a correction or crash,” he says.
“You have to look at the numbers over a 10-year period. A lot of people
are sitting on the sidelines but you should get in when you can afford to.”
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