Category: News

KPMG: House prices in the eastern capitals to decline

Latest news: Regional markets seeing value growth – report Check out the South West’s hidden gems High-net-worth Chinese still favour Australia Sydney’s house prices will experience a greater adjustment than Melbourne’s in the coming years, predicts a new report from KPMG Economics.
Entitled Housing affordability: What’s driving house prices in Sydney and Melbourne?, the report said that median house prices in Sydney are overvalued by 14% and in Melbourne by 8%, but will decline gradually rather than sharply over the next few years,
Sydney’s median house prices are forecast to peak at $980,000 in 2019, up from $880,000 in June 2016. Median house prices are then forecast to roll back to between $930,000 and $950,000 by the end of the 2021 financial year.
In contrast, Melbourne’s median house prices are expected to peak in 2018, pause for a year or two, and then start to grow again.
Melbourne’s median house prices are expected to rise to between $720,000 and $740,000 by the end of 2019, ..

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Regional markets seeing value growth – report

Latest news: KPMG: House prices in the eastern capitals to decline Check out the South West’s hidden gems High-net-worth Chinese still favour Australia Often considered to be obstinately sluggish during the upturn in a property market cycle, Australia’s regional property markets are currently experiencing the flow-on effects from strong capital city market activity, according to the latest CoreLogic Property Pulse report, released on Thursday.
Covering the 50 most populous non-capital city council areas, the report noted a rise in house and unit values over the past 12 months to May 2017.
“After a long period of soft housing market conditions [post-GFC], we’re seeing a pick-up in housing demand across these regions as buyers look outside the capitals for more affordable options,” said Cameron Kusher, research analyst at CoreLogic. “While a majority of the regions are showing an upward swing, areas linked to the mining and resources sector are continuing to see values fall.”
New South W..

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Check out the South West’s hidden gems

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report High-net-worth Chinese still favour Australia Buyers looking for a holiday home or great investment opportunity in a picturesque location should consider the hidden gems of the South West, according to the Real Estate Institute of Western Australia (REIWA).
The institute recently revealed the region’s 10 most affordable suburbs, with Collie, Withers, and Manjimup topping the list.
“Whether you’re looking for a property to invest in or seeking to move to the region, there is an abundance of options available to buyers down south,” said Hayden Groves, president of REIWA. “Most notable is the exceptional lifestyle opportunities on offer, which are not readily available at these prices in the metro area.”
The median house prices of the 10 suburbs on REIWA’s list range from $205,000 to $335,000, which are well below the Perth metropolitan median house price of $525,000, accord..

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High-net-worth Chinese still favour Australia

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems While many middle and upper middle class Chinese are turning their backs on the Australian property market following a series of measures designed to cool the market, ultra-rich Chinese are as resilient as ever.
According to Bain & Company and China Merchants Bank’s China Private Wealth Report, Australia is the third most popular destination for ultra-rich Chinese nationals who want to invest offshore.
With interest in the top two investment destinations—Hong Kong and the United States—falling by 18% and 3% respectively, there has been a 7% jump in private Chinese wealth flowing into Australia, the report said.
At the same time, China’s pool of private wealth ballooned to CNY165trn (roughly $31trn) in 2017. This is six times what the nation’s private wealth was a decade ago, and is twice the size of China’s GDP.
According to the report,..

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Brisbane properties to be forcibly cleaned up

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems Property owners in Brisbane with unsightly gardens, hoarding habits, and rundown homes could find their properties tidied up, with the bill for the work landing in their mailboxes.
Starting on June 30, four new Brisbane City Council officers will be employed to crack down on unkempt properties across the city.
The new program will cost half-a-million dollars a year, and was announced as part of the city’s 2017-18 budget.
Matthew Bourke, community services chairman of the Brisbane City Council, said the new program was put together in response to the growing number of investor-owners who were neglecting their responsibility as property owners.
“These council officers will be responsible for managing properties that are found to be breaching council's local laws for health, safety and amenity concerns, such as hoarding and unkempt p..

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Depth of housing affordability crisis revealed

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems The chasm between average incomes and average home prices in Australia continues to widen, according to a new report from PowerHousing Australia and CoreLogic.
The Australian Affordable Housing Environmental Scan 2017-18 examines the key metrics for housing affordability across Australia. The report also highlights the urgent need to implement new measures, such as those announced in the recent federal and NSW state budgets, to improve access to the housing market, especially for people on lower incomes, such as first-home buyers, key workers, seniors, and tenants of social housing.
“The report shines a light on just how acute the housing market participation challenge is for low-income earners, for both renters and those looking to become homeowners. The situation for first-home buyers is particularly dire today,” said Nicholas Proud,..

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NAB: Long-dreaded housing crash unlikely

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems House price growth in Australia is set to slow in the second half of the year; however, it’s unlikely to bring about the long-dreaded housing crash, according to National Australia Bank’s (NAB) economics team.
While house prices and construction levels will remain elevated compared to historic norms, the “triggers for a major price fall seem absent,” the team said.
Even though significant measures have been taken to cool the housing market, such as the latest curbs enforced by the Australian Prudential Regulation Authority (APRA), higher mortgages rates from the banks, and some credit tightening, demand for housing is fuelled by strong immigration and population growth, particularly in Melbourne. Unemployment also remains low, the NAB economists said.
“Moreover, arrears remain historically low, and as noted already, tight lending standa..

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Demand for apartments in inner Sydney could weaken

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems Demand for apartments in inner Sydney is likely to weaken due to a combination of factors, including the banks responding to APRA’s crackdown on lending and foreign buyers getting hit with extra levies, according to new analysis from BIS Oxford Economics.
Skyrocketing prices have also pushed yields to long-term lows. Figures from CoreLogic last week show that apartment values fell 2.7% over May, which is faster than the 1% fall in detached houses in the city.
However, demand for apartments is unlikely to completely disappear, as foreign investors continue to favour Australia’s stable political environment, while local investors continue to benefit from low interest rates and remain wary of uncertain returns from other asset classes.
Much of the focus on the increase in apartment construction has been on Melbourne and Brisbane, and many..

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Foreign investors in QLD slammed with new tax

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems Foreign owners of investment property in Queensland will be slammed with a 1.5% land tax surcharge on assets with a value of $350,000 or more. The state government is seeking additional revenue in order to maintain a wafer-thin operating fiscal surplus.
The Palaszczuk government announced the new measure in its 2017-18 state budget, and said the surcharge represents a fair contribution to the tax base, considering the numerous benefits foreign property investors in Queensland enjoy.
“Absentee owners benefit from a high standard of services and infrastructure delivered and maintained by a broad range of taxes,” the government said in its budget papers. “The surcharge will ensure absentee owners of land make a further contribution.”
However, property industry lobby groups have slammed the decision, accusing the state government of breakin..

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Number of first-home buyers has decreased

Latest news: KPMG: House prices in the eastern capitals to decline Regional markets seeing value growth – report Check out the South West’s hidden gems Across Australia, housing affordability improved in the first quarter of this year; however, both the number of first-home buyers and the size of loans have decreased.
First-home buyers now make up 13.4% of total owner-occupied housing, according to the latest Adelaide Bank/REIA Housing Affordability Report.
Nationwide, the number of first-home buyers saw a decrease from December 2016 to March 2017, from 23,290 to 20,677. Meanwhile, the average loan size also went down from $323,700 to $313,433, according to Malcolm Gunning, president of the Real Estate Institute of Australia (REIA).
“Over the quarter, the average loan size to first-home buyers increased in South Australia and Tasmania,” Gunning said. “It will be interesting to see the effects that stamp duty exemptions and concessions announced in Victoria and more recently in NSW have..

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