C21 Market Wrap

D E C E M B E R

M A R K E T

2 0 1 7

W R A P

C21

PUBLISHER Lorem ipsum dolor sit amet

M A R K E T

Consectetuer Adipiscing Seddiam Nonummy Nibheuismod Tincidunt Laoreet Doloremagna Aliquamerat Volutpat.

W R A P

C21

CONTRIBUTERS

EDITORIAL ENQUIRIES Enimad Minimveniam 1234 5678

ADVERTISING ENQUIRIES

WELCOME TO

THE DECEMBER 17 ISSUE OF

C21 MARKET WRAP

Nostrud Exercitation 1234 5678

DISCLAIMER Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi.

C D

O E

N C

E

LOREM IPSUM DOLOR SIT AMET

T M

E B

E

N R

T R

S 1

7

L U P T A T U M Z Z R I L D E L E N I T A U G U E D U I S 42

07

Consectetuer adipiscing elit, sed diam nonummy

Dolore te feugait nulla facilisi. Lorem ipsum

nibh euismod tincidunt ut laoreet dolore magna

dolor sit amet, consectetuer adipiscing elit, sed

aliquam erat volutpat.

diam nonummy nibh euismod tincidunt ut

UT WISI ENIM AD MINIM

12

LAOREET DOLORE MAGNA ALIQUAM

Veniam, quis nostrud exerci tation ullamcorper

dolor in hendrerit in vulputate velit esse molestie

suscipit lobortis nisl ut aliquip ex ea commodo

consequat

60

consequat.

VEL ILLUM DOLORE EU FEUGIAT DUIS AUTEM VEL EUM IRIURE DOLOR

32

Nulla facilisis qui blandit praesent luptatum

Hendrerit in vulputate velit esse molestie

zzril delenit augue duis dolore te feugait nulla

consequat, vel illum dolore eu feugiat nulla

facilisi.

facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent.

C21 MARKET WRAP

01

CENTURY 21

64

CHAIRMAN STATEMENT

WHAT THE NEW FINANCIAL YEAR WILL BRING FOR PROPERTY

BY CHARLES TARBEY CHAIRMAN CENTURY 21 AUSTRALAISA

The new financial year heralds a time for change and new things, and this may be particularly true of the Australian real estate market this year. Not only is the market demonstrating signs of shifting conditions and changing dynamics between buyer and seller, but recent legislative changes related to housing entered into force on July 1 which may further change the way Australians approach property transactions over the coming financial year.

RETURN TO SEASONALITY The latest CoreLogic Home Value Index has shown a slight recovery from the slower results recorded in May where dwelling values fell 1.1 per cent. In June, CoreLogic recorded a 1.8 per cent increase in dwelling values over the month. CoreLogic reports suggest that despite the short term recovery, signs are pointing to less steam in the market. I am of the view that we may see the first real’ real estate cycle kicking in over the coming months, and we may experience a more seasonal market.

Strong market conditions, buyer demand and cheap finance mean we haven’t really seen distinct differences

in seasonal activity over the past

up in less than favourable weather

few years, however a traditionally

conditions. This scenario may help

quiet winter market appears to be

you accurately value a property and

emerging. We are seeing less people

decide what you would pay for it. It

at auctions, and less energetic

is likely that spring this year will see

bidding conditions. Clearance rates

the traditional increase in stock that

are trending downwards however,

is characteristic of the season in real

while this may be perceived as a

estate, particularly with an influx

negative by some, I believe buyers

of completed apartment complexes

may be faced with better prospects

filling supply lines in some markets.

for property purchases in some situations. A quieter winter season can actually be a good time to buy as many are turned off venturing out to open homes in the cold or wet, and there may be less competition when inspecting a property. Not only this, you may be able to see a property in a truer light or even note how it holds

C21 MARKET WRAP

02

CENTURY 21

FIRST HOME BUYER LEGISLATION Recently released data from the 2016 Census shows that home ownership rates have declined, from 68.6 per cent in 1991 to 65.5 per cent in 2016. In a bid to improve prospects of home ownership, the

Victorian and New South Wales

we cannot predict movements with

over the March quarter. In contrast,

state governments introduced new

certainty, rates can move quickly

the quarterly trend in Melbourne

measures to assist first home buyers,

and I remind Australians to plan for

has been more resilient, with growth

including the removal of stamp duty

such scenarios to ensure they don’t

easing from 4.2 per cent over the

concessions, and grants for builders

come under future financial pressure

March quarter to 1.5 per cent over the

and purchasers of new homes up to

in a changing market. Contact Us *

three months ending June.

a specified thresholds. These came

Capital city dwelling values rise 0.8%

into force on 1 July 2017. As such,

over June quarter Despite a seasonally

there has been talk about first home

strong result over the month of June,

buyers re-entering the market from

the CoreLogic Hedonic Home Value

July and becoming a bigger

series shows capital

force to be reckoned

gains over the

with. I encourage first home buyers to balance the short term benefit of concessions with a smart, longterm investment decision. It is important not to rush in and buy any

second quarter

A quieter winter season can actually be a good time to buy as many are turned off venturing out to open homes in the cold or wet…

property for the sake of

losing

For Sydney, Mr Lawless said the more pronounced slowdown is supported by weaker auction clearance rates which have been tracking in the high 60 per cent range across the city

steam. The

over the last three weeks of June,

CoreLogic

while in Melbourne, clearance rates

Home

have moderated but remained above

Value

70 per cent. He said, Both markets

Index

experienced auction clearance rates

recorded a

consistently in the high 70 per cent to

recovery from

low 80 per cent range over the March

the 1.1 per cent

getting into the market or utilising concessions. They should

of 2017 is

W E A K E R A U C T I O N R E S U LT S A R E FURTHER EVIDENCE OF SLOWING HOUSING MARKET CONDITIONS.

quarter.

fall in May, with a 1.8 per cent rise in capital

SLOWER HOUSING MARKET CONDITIONS ALSO REFLECTED IN THE ANNUAL PACE OF CAPITAL GAINS.

carefully consider their financial

city dwelling values over the month

positon now and if rates changed

of June. According to CoreLogic

in the future, and ensure that the

head of research Tim Lawless, This

property they purchase sits within

stronger month-on-month reading

Across the combined capitals, the

a predetermined budget that takes

can be partially explained by the

annual pace of capital gains has eased

these factors into account - not just

seasonality in the monthly growth

from 12.9 per cent three months ago

short term concessions.

rates. Adjusting for this effect

to 9.6 per cent at the end of June

suggests an easing trend in housing

2017. Sydney’s annual growth rate

value growth has persisted through

has slowed to 12.2 per cent over the

the second quarter of 2017. The June

twelve months ending June 2017,

quarter results showed that capital

down from a recent high of 18.9 per

city dwelling values were 0.8 per cent

cent three months ago. Melbourne’s

higher across the combined capitals

annual growth rate is now the

index; the slowest quarterly rate of

highest of any capital city, surpassing

growth since December 2015 when

Sydney’s annual rate of growth

the combined capitals index fell by 1.4

despite easing from 15.9 per cent

per cent. Mr Lawless said, This trend

three months ago, to 13.7 per cent

towards lower capital gains across

over the twelve months.

SHIFT TO BUYERS’ MARKET It appears that the market is shifting in favour of buyers. Whilst the outlook may be looking a little cooler, there is still a solid underlying demand for property. Sellers may have to work a little harder to make their property stand out, and when the offers roll in they may have to be more open to negotiation in reaching an acceptable outcome between parties. It will also pay for buyers to remember that the financial year ahead may hold the potential for rate increases. Whilst

the combined capitals index is mostly attributable to softer conditions across the Sydney housing market, where quarter-on-quarter growth was recorded at 0.8 per cent over the June quarter; down from 5.0 per cent C21 MARKET WRAP

03

CENTURY 21

CORE LOGIC NEWS - MARKET TRENDS

CAPITAL CITY DWELLING VALUES RISE 0.8% OVER JUNE QUARTER Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat.

Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip.

Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui

duis dolore te feugait nulla facilisi.

Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu.

facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in

facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis

blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla

augue duis dolore te feugait nulla

FEUGIAT NULLA. DUIS AUTEM Vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit

VULPUTATE VELIT ESSE Molestie consequat, vel illum dolore eu feugiat nulla facilisis qui blandit praesent luptatum zzril delenit augue

C21 MARKET WRAP

04

CENTURY 21

dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla.

TOP TIPS FOR SECURING A PROPERTY PURCHASE Dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat.

Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip.

Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi.

1. LOREM IPSUM DOLOR SIT AMET Consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit. Molestie consequat, vel illum dolore eu feugiat nulla facilisis qui blandit praesent

BY CHRIS GRAY, YOUR EMPIRE CEO

dolore te feugait nulla facilisi.

4. ZZRIL DELENIT AUGUE DUIS

Duis autem vel eum iriure dolor

Dolore te feugait nulla facilisi. Lorem

in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla.

ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut

2. FACILISIS AT VERO EROS ET Accumsan et iusto odio dignissim qui

5. LAOREET DOLORE MAGNA ALIQUAM ERAT

blandit praesent luptatum zzril delenit

dolor in hendrerit in vulputate velit

augue duis dolore te feugait nulla

esse molestie consequat, vel illum

facilisi. Lorem ipsum dolor sit amet,

dolore eu feugiat nulla facilisis qui

consectetuer adipiscing elit, sed diam

blandit praesent luptatum zzril

nonummy nibh euismod tincidunt ut

delenit augue duis dolore te feugait

laoreet dolore magna aliquam erat

nulla facilisi. Duis autem vel eum

dolor in hendrerit in vulputate velit

iriure dolor in hendrerit in vulputate

esse molestie consequat, vel illum

velit esse molestie consequat, vel

dolore eu.

illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto

3.FEUGIAT NULLA. DUIS AUTEM

odio dignissim qui blandit praesent luptatum zzril delenit augue duis

Vel eum iriure dolor in hendrerit

dolore te feugait nulla facilisi. Lorem

in vulputate velit esse molestie

ipsum dolor sit amet, consectetuer

consequat, vel illum dolore eu feugiat

adipiscing elit, sed diam nonummy

nulla facilisis at vero eros et accumsan

nibh euismod tincidunt ut laoreet

et iusto odio dignissim qui blandit

dolore magna aliquam erat dolor

praesent luptatum

in hendrerit in vulputate velit esse molestie consequat, vel illum dolore

luptatum zzril delenit augue duis

eu feugiat nulla.

C21 MARKET WRAP

05

CENTURY 21

OUTDOOR LIVING Laoreet dolore magna aliquam erat volutpat.

Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut aliquip.

Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet.

C21 MARKET WRAP

06

CENTURY 21

Autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis at vero.

Eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy nibh euismod tincidunt ut laoreet dolore magna aliquam erat dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla. Duis autem vel eum iriure dolor in hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis.

C21 MARKET WRAP

07

CENTURY 21

DUISAUTEM VELEUMIRIURE Dolor in hendrerit in vulputate velit esse molestie consequat vel illum dolore eu feugiat nulla facilisis at vero eros et accumsan.