Market Update

A few interesting articles on the state of the current market…

The forecast for capital city housing markets remains mixed for 2017, with no surprise that Sydney and Melbourne are likely to continue to lead. It is likely that other capitals will remain steady, with price growth generally constrained by low income economies. Lower interest rates in 2017 are likely to continue to bolster housing markets, with an increasingly underperforming national economy almost certain to require further stimulus from the Reserve Bank. House price growth, although remaining positive in most capitals through 2017, will likely track in a narrow range of up to 5% annually for the top performers. Unit markets will continue to be influenced by significant levels of new apartments, acting to push supply ahead of demand. The impact on local prices will vary, so keep your eyes out for a bargain on the unit market.

The Sydney unit market is set to remain strong, due to a chronic undersupply of units and solid demand, holding prices strong. This makes 2017 a great time for Sydney sellers. Record new apartment supply in the Melbourne CBD will continue to outstrip demand, with downward pressure on prices to continue in that submarket. Strong demand and lack of supply for suburban units, however, will offset the weaker CBD market. This means that overall Melbourne unit prices growth is likely to remain positive over the year. Unit prices in Brisbane, Perth and Darwin can be expected to continue to fall. Adelaide and Canberra are set to produce positive but modest price outcomes over the year.

FOCUSING ON SYDNEY: 

Due to the increased popularity of sharing platforms such as Airbnb, the short-term holiday rental market will remain popular this year. One-bedroom, one-bathroom, no-parking properties around Surry Hills, Chippendale and Darlinghurst can provide a decent return and are relatively affordable at around $650,000. Increasing patterns of renovation will continue to provide good returns. Some areas will also experience a slowdown in 2017. Frenchs Forest has seen a huge growth in 2016 but will likely level out this year. Bondi will also slow down, with an increase in supply of apartments being built in the area.

North: We will see an increase in young executive couples purchasing in areas near the new light rail such as Castle Cove, the lower north shore, Cammeray and Northbridge.

East & Inner City: Kensington and surrounds will make sound investment options, with the new light rail passing through these suburbs once completed.

West: The Hills, Castle Hill and Cherrybrook will pick up over the next year in anticipation of the new train line that is set to open in 2019.

SOURCES: DOMAIN GROUP, ANDREW WILSON, 2017 AUSTRALIAN PROPERTY MARKET PREDICTIONS; WHICH INVESTMENT PROPERTY, SIMON COHEN, WHATS ON THE PROPERTY HORIZON FOR 2017?

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Putting Sydney’s Price Growth into Perspective

The Consumer Price Index (CPI) data for the quarter ending March 2015 was released by the Reserve Bank of Australia on Wednesday, 23rd April 2015. The data showed that over the quarter from January to March 2015, headline inflation was recorded at 0.2%, bringing the annual rate of inflation to 1.3%. This is well below the RBA’s target range of 2% to 3%.

 

However, this new data has helped to bring the rate of Sydney’s price growth into perspective and to understand the real change in home values.

 

There has been ample publicity surrounding the record price growth experienced in the Sydney property market of late, with further talks of a pricing bubble. However, when we factor in the impact of inflation the growth rate doesn’t seem so bullish.

 

Over the 12 months to March 2015, nominal home values across the combined capital cities increased by 7.4% however, including inflation, real home value increases have been recorded at 6.0%. Looking more specifically at Sydney, real home value growth over the past year is recorded at 12.5% (4.2% in Melbourne, and less than 1.5% in other capital cities).

 

When comparing the annual change in real capital city home values to the 10 year real annual change it shows that only Sydney, Melbourne and Brisbane are outperforming the decade average. Over the past five years, real combined capital city home values have increased by 1.2% per annum compared to 2.2% pa over the past decade. Over the past five years, real home values have increased at a rate of 4.0% pa in Sydney and by 1.3% pa in Melbourne.

 

However, the Sydney market is still showing positive signs of further price growth. Last week, Sydney’s final auction clearance rate came in at 87.0% across 988 total auctions. This is the highest clearance rate on record for the city.

 

Given that Anzac Day falls on Saturday this year, traditionally the busiest day for auctions, the number of auctions being held this week is much lower than usual. There will only be 174 auctions held across Sydney this week, with the majority of the auctions held prior to the weekend, given the Anzac Day commemorations.

 

Source(s):

CoreLogic RP Data National Auction Preview, “Anzac Day shifts focus away from auctions this weekend”, Shana Miller, 23/04/15

CoreLogic RP Data National Auction Preview, “Inflation adjusted home value growth”, Cameron Kusher, 23/04/15,

 

Frank Touma

The Property Centre Rockdale

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Auction 5/69 Chapel Street Rockdale

Just Listed Auction

5/69 Chapel Street Rockdale

2 Bed, 1 Bath, 1 Car - white back

 

Truly a great apartment! Occupying a priced north-eastern corner of the building and set in one of Rockdale’s most convenient hubs, close to all amenities including Rockdale Plaza and Rockdale Train Station. With an area of 95 square metres and an additional lock-up garage and internal laundry facilities.

Definately one to inspect.

Open Saturday’s from 11:00am to 11:40am and Thursday’s 5:30pm to 6:00pm.

Auction Saturday 28/03/2015 at 12:00pm. On-Site.

Contact Frank Touma from The Property Centre Rockdale on 0402 061 276 or frank@tpcrockdale.com.au for further details.


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Fundraiser for Cancer Council NSW

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We are taking on the 27km Seven Bridges Walk on 26th October 2014.

Please show your support to this great cause by donating. Follow the link below.

Your support and donations are appreciated!

A tax deductible receipt will be sent straight to you when the transaction has been completed.

https://sevenbridgeswalk2014.everydayhero.com/au/frank-3

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For Lease: Three Bedroom Apartment in Coogee

12/108 Brook Street Coogee

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Live Like Your on a Holiday!

3 Bed, 1 Bath, 1 Car - white back

 

Embrace the full Coogee Lifestyle in this impressive 111sqm top floor apartment with expansive, un-obstructed views over Coogee Beach.

The apartment has been recently updated, including a fresh coat of paint, however retains much of its original art-deco charm. Situated just behind Coogee Oval, location is second-to-none, just footsteps to all Coogee has to offer.

For further details or to arrange an inspection, please contact Frank Touma on 0402 061 276 or frank@tpcrockdale.com.au.

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For Sale: Near New Townhouse in Roselands

Facade32/25 Leslie Street Roselands

This stunning designer townhouse remains in prestige condition and provides the perfect opportunity to enter the housing market in style. With top-of-the-range finishes throughout, this lavish home offers the perfect combination of style, design, convenience and space.

  • Generous proportions and quality finishes throughout
  • Spacious lounge, and separate dining area
  • Designer kitchen with Caesar stone bench tops and stainless steel appliances
  • 3 large bedrooms with built-ins, master with oversized balcony and ensuite.
  • Sunny rear yard and manicured gardens
  • Ducted air-conditioning throughout.
  • Automated Lock-up Garage.
  • Close to Centro Roselands Shopping Centre, restaurants, and bus services.

Contact Frank Touma for any enquiries on 0402 061 276 or frank@tpcrockdale.com.au.

http://www.thepropertycentrerockdale.com.au/search/results.aspx?class=0&agtid=4143

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For Lease: Two Bedroom Apartment in Bexley

FacadeBeautifully Renovated Two Bedroom Apartment in Bexley

Brand New Caesarstone kitchen, renovated bathroom, lovely timber floorboards throughout, communal laundry with room for your own washing machine and lock up garage. Great Location.

 
Contact Frank Touma on 0402 061 276 for further details.

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