NEWS - Urgco
CN
Thu  11/05/2017

Infrastructure commitments to boost new growth areas

Screen Shot 2017-05-11 at 1.27.26 PM

 

The Real Estate Institute of Victoria has welcomed significant road and rail infrastructure investment by the State Government, which will drive growth in areas further from the city.

REIV Chief Executive Officer Gil King said the $4 billion investment in regional Victoria – including $1.45 billion for regional rail services – will increase buyer demand for homes across the state.

“Greater road and rail infrastructure will not only improve the desirability of regional Victoria, but will also result in higher property prices in these areas in the long-term,” he said.

“We’re already seeing strong price growth in towns within commuting distance of Melbourne, especially in Geelong where the median house price is now $701,000.”

The REIV also supported the State Government’s $1.9 billion investment in our roads, which includes $700 million over four years to upgrade the M80 Ring Road and $300 million to build the Mordialloc Bypass.

A further $879.5 million will be invested in public transport for metropolitan Melbourne with eight additional train services on the Werribee line and new bus services in a number of outer suburbs.

“Improved transport services in Melbourne’s outer suburbs will drive continued buyer interest in these suburbs, which have experienced strong price growth in the past two quarters.”

“With estimated population growth of around 100,000 people each year, infrastructure investment in these new growth areas is essential.”

Significant Budget measures announced include $2.9 billion for the state’s health care system and $685 million for Victorian schools.

The State Government also announced changes to land tax valuations, which will now be conducted on an annual basis.

Mr King called on the Andrews’ Government to consider reform of the land tax model, which contributed $2.5 billion in the last financial year alone.

“Land tax is a considerable issue in Victoria with investors across the property sector experiencing exorbitant increases. A percentage cap on annual increases is necessary to ensure the ongoing viability of property investment in this state.”

 

 

Mon  24/10/2016

Hot Melbourne property auction market galloping ahead

Melbourne celebrated a stunning result on its first spring Super Saturday of the season, with the auction market tracking at its highest since the boom-time spring of 2009.

Melbourne recorded a clearance rate of 83.7 per cent on Saturday, which was well ahead of the 79 per cent recorded the previous weekend and significantly higher than the 70.4 per cent recorded over the same weekend last year.

Although auction numbers surged for the pre-Melbourne Cup Super Saturday, listings were well down compared to previous years. Just over 1200 auctions were conducted on Saturday, which although well up on the previous weekend’s 993, was well behind the 1479 auctioned over the same weekend last year. Just over 450 auctions are listed in Melbourne over next weekend’s Cup holiday break.

Melbourne celebrated a stunning result on its first spring Super Saturday of the season, with the auction market tracking at its highest since the boom-time spring of 2009.

Melbourne recorded a clearance rate of 83.7 per cent on Saturday, which was well ahead of the 79 per cent recorded the previous weekend and significantly higher than the 70.4 per cent recorded over the same weekend last year.

Although auction numbers surged for the pre-Melbourne Cup Super Saturday, listings were well down compared to previous years. Just over 1200 auctions were conducted on Saturday, which although well up on the previous weekend’s 993, was well behind the 1479 auctioned over the same weekend last year. Just over 450 auctions are listed in Melbourne over next weekend’s Cup holiday break.

 

Just over 1200 auctions were conducted on the weekend, with a clearance rate of 83.7 per cent.

Just over 1200 auctions were conducted on the weekend, with a clearance rate of 83.7 per cent.Photo: Chris Hopkins

 

Melbourne’s regions produced another even spread of results at the weekend, with all areas enjoying a strong spring selling season so far. The inner south reported the highest clearance rate on Saturday, with 88 per cent. This was followed by the north east with 87.7 per cent, the outer east with 86.9 per cent, the south east with 86.5 per cent, the west with 83.3 per cent, the inner city with 81.3 per cent and the inner east with 77.6 per cent.

Notable sales reported at the weekend included:

The most expensive property reported sold at auction was a four-bedroom home at 36 Hawthorn Grove, Hawthorn, which sold for $5.02 million by Jellis Craig. The most affordable property reported sold at the weekend was a one-bedroom unit at 6/13 Ormond Road, West Footscray, which sold for $200,000 by Hocking Stuart.

 

Period passion: 36 Hawthorn Grove, Hawthorn smashed its reserve.

Period passion: 36 Hawthorn Grove, Hawthorn smashed its reserve. Photo: Jellis Craig

For a list of auction Melbourne results click here. 

Melbourne recorded a median auction price of $872,000 on Saturday, which was higher than the $860,000 reported last weekend and 6.3 per cent higher than the $820,000 recorded over the same weekend last year. A total of $653.1 million was reported sold at auction in Melbourne at the weekend.

Strong auction market activity is predictably translating to higher prices, which will be welcomed by Melbourne home owners. Potential first home buyers, however, will not welcome higher prices, which will act to offset the benefits of current record low interest rates and a highly competitive lending environment.

 

Strong auction market activity is predictably translating to higher prices in Melbourne.

Strong auction market activity is predictably translating to higher prices in Melbourne.Photo: Chris Hopkins

 

The latest Australian Bureau of Statistics data reports the number of loans to Victorian first home buyers fell by 1 per cent over August to 2186 – the lowest monthly result since March. Despite the fall, lending to local first home buyers has increased by 4.4 per cent over the first 8 months of this year compared to the same period last year.

The average first home buyer loan reported over August was $315,100 – a decrease of 1.8 per cent compared to August last year.

First home buyer lending activity in Victoria over August accounted for just 10.1 per cent of all residential lending in the state, which was the lowest market share recorded for more than a year and remains well below the long-term local average of 17 per cent.

Audience reaction: 8 Frognall Place, Canterbury sold within 15 minutes.
Audience reaction: 8 Frognall Place, Canterbury sold within 15 minutes. Photo: RT Edgar

 

 

 

Fri  14/10/2016

Interest rates remain unchanged for October

At the RBA meeting today, the Board decided to leave the cash rate unchanged at 1.50%. The global economy is continuing to grow, at a lower than average pace. Labour market conditions in the advanced economies have improved over the past year, but growth in global industrial production and trade remains subdued. Actions by Chinese policymakers have been supporting growth, but the underlying pace of growth in China has been moderating. Inflation remains below most central banks’ targets.

More >>
Thu  22/09/2016

We are now hiring Property Sales Consultant!

Universal Realty offers training course to obtain Real Estate Agent Representative Certificate. Stand a chance to win sponsorship from Universal Realty to join the training course for free !

More >>
Tue  06/09/2016

Hammers fall as auction season springs into action

Melbourne-future-skyline

 

The spring auction season has started with a bang, with the capital cities recording the year’s highest national clearance rate at the weekend.

Despite a fall in the number of properties on offer — dropping from 2153 last week to 1858 — the national clearance rate hit 78.4 per cent, more than 5 per cent higher than the same period last year.

The preliminary results from CoreLogic RP Data reflect the annual bumper spring rush as the property industry begins one of its busiest times.

The results come a month after the Reserve Bank slashed the interest rate and days before its board meets tomorrow, when it is expected to keep the official cash rate steady at its record low level of 1.5 per cent.

CoreLogic director Kevin Brogan said the first weekend of spring traditionally was strong for property sales.

“Typically, there has been an increase in activity, and I think obviously there is strong demand. The auction numbers are a little bit lower than last week … but that clearance rate is pretty strong,” he said.

“The main thing now is to see if there is an increase in volume next week and the clearance rate keeps pace.”

While there were fewer auctions in Sydney and Melbourne than this time last year, the clearance rates of 83.9 per cent and 79.3 per cent were both significantly higher than the previous week. Brisbane, Canberra and Adelaide also recorded their highest clearance rates of the year.

“For the last few weeks we’ve seen lower auction rates, which speaks to lower confidence,” Mr Brogan said. “But a counter for that was the strength of clearance rates; anybody taking a property to auction next weekend would really be feeling quite confident.”

Sydney couple Warren Muir and Atsuko Furuya are selling their three-bedroom Balmain property next weekend as their two sons become more independent and they look to buy a second home in Tokyo.

“(The property market) is getting more lively,” Ms Furuya said.

“A year ago, it was booming but after that it started to cool down and we were concerned.”

“But it seems more and more people are coming back to the property market.”

“One of the reasons is the interest rate is lower. I’m not really sure of any other reasons, but it’s good for us.”

 

Source: The Australian

 

Wed  14/01/2015

2014－2015 housing market review

2014－2015 housing market review

 

2015 – What to expect:

Since the combined capital city housing market began its current growth phase in June 2012, the growth has been fairly narrow. Home values have increased significantly in Sydney (31.2%), with growth more moderate in Melbourne (17.6%), Darwin (17.5%) and Perth (15.5%) and much slower elsewhere. Combined capital city home values have increased by 8.5% over the 12 months to November 2014 and by 7.0% over the first 11 months of 2014. The annual rate of home value growth peaked in April 2014 at 11.5% across the combined capitals, slowing to 8.5% in November. This trend has been reflected across all capital cities except for Hobart.

Investors and upgraders continue to be the primary drivers of housing demand. More recently the rate of growth from the upgrader segment has slowed while investor activity continues to escalate and is currently at its highest ever proportion of lending. Investment lending has risen across most states however, New South Wales and Victoria have seen the most significant escalation. While capital growth has been strong rental growth is sitting at the lowest levels recorded in more than a decade. As a result, rental yields are trending lower.

In 2015 we would expect that the rate of value growth across the combined capital cities will continue to moderate. Despite low interest rates, which may potentially go lower next year after 2.5 years of growth, the market seems to be running out of steam. We still expect values to grow in 2015 albeit at a slower pace than what we have seen through 2013 and 2014. As buyers find it more difficult to enter the Sydney and Melbourne market we may see an increase in demand in New South Wales and Victorian regional markets as well as Brisbane and potentially Adelaide.

Next year will be an interesting year to watch. Many factors could have an impact on the housing market. The Reserve Bank has flagged that they, along with APRA, are looking at potentially introducing macroprudential tools to curb the high level of investor activity. APRA has since announced no tools will be implemented as yet however, they are increasing surveillance and have specifically stated to the banks what they consider to be prudent lending in the current environment. This is likely to result in lower levels of investment and higher risk lending over the next year which should also result in a cooling of market conditions. Further to this, the unemployment rate is at its highest level in more than a decade, household income growth is very low, consumer and business confidence is low and the mining sector continues to slow. These factors will all play on the mind of buyers potentially looking to purchase a home in 2015.

 

2014 – How the year ended up

Data for 2014 through to the end of November showed that combined capital city home values increased by 8.5% with house values up 8.9% and unit values rising by 5.9%.

As always, there were certain areas across the country that have well and truly outperformed others. The following pages list the top performing suburbs nationally and across the capital cities over the 12 months to September 2014. Specifically the analysis looks at:

  • Highest median value
  • Lowest median value
  • Lowest median value within 10km of a capital city
  • Highest indicative gross rental yield
  • Highest indicative gross rental yield within 10km of a capital city
  • Greatest 12 month change in median values
  • Greatest 5 year change in median values
  • Highest median weekly advertised rent
  • Lowest median weekly advertised rent
  • Highest gross value of sales