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Issue # 059 December 6 2013

"What's Happening In New South Wales"

"What's Happening In Queensland"

Amendments To NSW Planning Bill "Spell Disaster" For The State: UDIA

Brisbane Market Maintaining Momentum, Backed By Lift In Demand

Party politics has trumped what is best for the NSW economy and the need to adequately cater for population growth, according to the Urban Development Institute of Australia (NSW). This follows a host of amendments to the state’s planning bill which the UDIA says “spell disaster for NSW’’. 3 December 2013. More.

Sales activity in the Inner Brisbane apartment market maintained momentum throughout the third quarter of this year, according to Colliers International. Its research and forecast report for the second half of 2013 shows unconditional sales reached their highest point in nine years - with 645 sales recorded across 48 projects. And this figure is expected to be revised upward after including settled sales in projects where surveys were incomplete. 3 December 2013. More.

First Home Buyers Spooked By Sydney's Hot Auctions Spooked by hot market prices, first home buyers are digging their heels in and refusing to budge on their budgets. This was the case at the Camperdown auction of 101/4 Alexandra Drive on Saturday, the one-bedroom apartment selling for $20,000 under reserve at $630,000. 1 December 2013. More.

Springfield On Track For Growth The property market in Brisbane’s Springfield is expected to surge after the opening of two new train stations. “You’ll see that whole area start to blossom,” director of wHere Group Todd Hunter said. Mr Hunter believes improved rail access will lead to changes in the area’s population. 3 December 2013. More.

Property On The March In NSW Regions Real estate agents Raine & Horne report that NSW’s regional cities and towns are starting to shine when it comes to property, with strong growth prospects and rental yields luring first timers and investors. Sydney real estate prices have surged over 12% in the last 12 months, pushing some buyers and investors further afield around the capital. 28 November 2013. More.

Brisbane Tipped To Lead In 2014 Brisbane ranked well down the list of capital cities for house price growth this year. Data for the end of the September Quarter had Brisbane fifth (ABS House Price Indexes), sixth (RP Data Home Value Index) and seventh (APM’s House Price Report), depending on whose figures you prefer. 28 November 2013. More.

Sharp Rise In First Homebuyer Applications

QLD Property Market In Growth Phase

Western Sydney suburbs make up 70 per cent of the top 20 suburbs claiming the First Home Owner Grant (FHOG) in New South Wales, according to Treasurer Mike Baird. The take-up of the FHOG in the top 20 suburbs had almost tripled in the past three years, increasing from 780 in 2011 to 2042 in 2013. 26 November 2013. More.

Queensland’s residential property market is improving, with new data showing sales are growing in many areas. The Real Estate Institute of Queensland’s (REIQ) September quarter median house price report has revealed the preliminary numbers of house sales across the state grew by nine per cent over the September quarter. 28 November 2013. More.

Could Unit Owners Be Forced From Old Blocks?

Brisbane Property Bouncing Back

A question that has vexed strata managers and apartment owners for years is how do you wind up an old apartment building when it has come to the end of its practical life? How would you ever obtain 100% agreement from all owners to sell? 26 November 2013. More.

Brisbane’s residential property market appears to be strengthening, with the sub-$1 million price bracket leading the way. Leading Queensland real estate agency Place is reporting more than $80 million worth of residential property was sold in transactions negotiated by just two of their offices in October; a record month for sales. 26 November 2013. More.

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Free Workshop

Discover How To Make 2014 Your Best Year Ever As A Property Investor!

If you've mentally "given up" and you're waiting for 2014 to make a start on your property investment goals... you're making a BIG MISTAKE. There are 20 days left before Christmas and this is more than enough time to ensure that 2014 will be the best year you'll ever have. In the workshop, you will discover:• • • • • •

the number one place you should start when it comes to investing in property (HINT: it’s got nothing to do with investment magazines) what 93% of all property investors don’t know the three mental shifts that separate the other 7% of property investors and how you can implement this in your 2014 calendar real life case studies of how three of my clients have used this investment method to go from ‘struggling’ or ‘stuck’ … to each owning multiple properties within 3 years how to ensure your focus & motivation holds for the entire year AND the number one way to finally get leverage in your life

If you're the type of person who is sick of "new year resolutions" that never last past the 5th of January, and you want to start 2014 with 'the right' property investment knowledge, this workshop is definitely for you! Be quick - we're only able to fit 10 people into the room, and we've just sent an invitation to everyone on my Smartline and Smart Property Adviser contact lists. Date: 17th December 2013 Time: 9am sharp (8:30am registration) Location: Our Boardroom | 33/9 Hoyle Avenue, Castle Hill NSW 2154 Duration: 2 hours Admission: FREE Registration: email kantesha@smartpropertyadviser.com.au to reserve your seat.


State Of The Nation Continued… "What's Happening In Victoria"

"What's Happening In South Australia"

Developers Vie For Land In Melbourne's Outer Suburbs

Brisbane And Adelaide Set For Growth

Greenfield land prices and sales in Melbourne's outlying suburbs are showing signs of life as developers and buyers become more active. The net median land price has increased for a second consecutive quarter up to $198,500 after a prolonged slump following the 2009 - 2010 property boom, according to Oliver Hume Real Estate Group. 4 December 2013. More.

Brisbane and Adelaide's housing markets are expected to outperform all other capital cities, moving into 2014, according to the latest RP Data Quarterly Review. The report suggests the Sydney and Melbourne markets may slow as affordability constraints begin to dampen these markets after substantial value growth in 2013. The report states, “From an investor's perspective, the best opportunities have now probably passed in these two cities and demand from this sector may also slow. 4 December 2013. More.

Auction Market Survives Yet Another Super Saturday Melbourne’s weekend auction market produced another steady result at the weekend despite a continuing flood of late year listings. The Reserve Bank will meet this week for the final time this year to determine its monthly interest rate stance. Although the Bank is unlikely to cut rates, particularly given the recent downward trajectory of the dollar, it has clearly signalled its concern over the prospects for economic activity and that a cut in the future remains a possibility. 2 December 2013. More.

Adelaide Market Shows Resilience If a market starts booming, but no one notices, does it make a sound? That’s something Adelaide investors will have to consider as the city, while far from “booming”, shows a considerable strength that has been downplayed so much over the years that it is almost forgotten. Amid frequent talk of a flat, uninspiring South Australian property market, it has been easy to lose sight of the fact that Adelaide has the most affordable mainland property prices. And by a long shot. 3 December 2013. More.

New Townhouse Development Major Case Status Given To Any Development In Residential Growth Zone: VCAT The criteria for planning matters that can fall under the Victorian Civil and Administrative Tribunal (VCAT) major cases list has been broadened to include all developments in a residential growth zone. The changes, taking place from December 1, ensure that all developments in a residential growth zone, including residential of any value, are now eligible. 2 December 2013. More.

Nine townhouses in a new development on Larkdale Cres, O'Halloran Hill, are up for sale. Previously the site had just one house on it. The three-bedroom townhouses, which will be community titled, will have about 135sq m of living space across two levels. The blocks are 124sq m. The properties will be built by Distinctive Homes. 2 December 2013. More.

Melbourne To Be Our Biggest City The latest population figures suggest that Melbourne is on track to become Australia’s largest city, with Victoria set to experience strong population growth over the coming 50 years. Australian Bureau of Statistics population projections show Melbourne’s population is expected to surpass Sydney’s by 2053. 27 November 2013. More.

Homes Are Selling In Melbourne, Just Not As Fast As In Sydney RP Data compares the number of new residential listings and total listings on a weekly basis as they help to provide a rounded view of the market. From the perspective of many, the volume of sales can be more important than the price of those sales. The past two years saw a very low volume of residential sales in Melbourne which is a reflection of conservative decision-making by consumers who, as the saying goes, ‘preferred to save rather than spend.’ 22 November 2013. More.

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More Than 1000 Property Owners In Mitcham And Adelaide Hills Council Regions Ordered To Reduce Fire Hazards More than 1000 property owners in the vulnerable Adelaide Hills need to clear bushfire hazards by Sunday or risk a fine. Mitcham Council, which incorporates the urban interface suburbs of Belair, Blackwood, Hawthorn- dene, Coromandel Valley and Upper Sturt, has issued 670 hazard-reduction notices to residents ahead of this year's fire danger season. 29 November 2013. More.

Adelaide's Top Suburbs For Investment Property Rental Returns The Northern suburbs are proving a paradise for savvy real estate investors looking to make a strong return on rental properties. Adelaide's top 10 suburbs for rental returns on houses are all in the north, led by Evanston Gardens on 9.1 per cent. Elizabeth South, Davoren Park, Elizabeth North and Elizabeth Downs round out the top five, according to RP Data figures. 26 November 2013. More.


State Of The Nation Continued… "What's Happening In Western Australia"

"What's Happening In The Northern Territory"

Prepare For A House Price Plateau

Stock On Market Up In November

How much more can investors get out of the housing market? Not a great deal. The 2013 house price ‘boom’ – if we can call it that – has largely been a Sydney affair, with real dwelling prices in other capital cities growing at a rate consistent with income growth, or in the case of Brisbane and Adelaide, barely growing at all. 4 December 2013. More.

Residential property listings increased substantially during November, according to SQM Research. Figures just released show national stock levels increased by 6.3 per cent during the month, to a total stock on market figure of 369,057. SQM Research noted there were five weekends during the month of November, but suggested the biggest factor in the increase of stock has been a later than usual ‘spring selling season’. 4 December 2013. More.

WA Pool Warning After Child's Death In Rental Pool fences and safety barriers must be properly maintained to ensure safety for children over the summer months and Christmas, with a joint warning from the Consumer Protection and Building Commission issued. This comes after a recent Coroner's Court hearing outlined a situation in which there were delays in repairing a self-closing pool security door at a rental property, that may have added to the factors surrounding the drowning of a child. 3 November 2013. More.

NT Hot Spot In Housing Surge Top end building approvals outstripped the rest of the nation as a percentage for the month of October, continuing a trend of strong housing figures which is expected to continue into early next year. Australian Bureau of Statistics figures released yesterday show the Territory's building approvals jumped 13.6 per cent for the month, while the total value of new residential housing reached a six-month high of $80 million. 3 December 2013. More.

Perth Median House Prices Have Never Been So High Perth's median house prices have reached their highest level yet as the housing market comes out of a slump in turnover. Data from the Real Estate Institute of Western Australia showed that sales turnover lifted during both October and November, pushing Perth's median house price to a new record. 2 December 2013. More.

Australia’s Strongest Property Market For 2013 Revealed Western Australia provided the strongest returns for direct property investors over the year to September 2013, according to a new report. Results from Investment Property Databank (IPD) show that the Western Australian property market outstripped the national average across a number of measures, according to Charter Hall. 28 November 2013. More.

Minister Looks To Alter WA Land Tax Retrospectively The State Government is looking to take immediate action to alter the Land Tax Assessment Act 2002 after a recent State Administrative Tribunal decision called into attention a hole in the Act. A recent decision was made regarding a retirement village where some of the land was used for an exempt purpose, while other parts were non-exempt. 28 November 2013. More.

"What's Happening In Tasmania" Hobart Waterfront Hopes To Follow In Barangaroo's And Docklands' Footsteps The development of Macquarie Point is one of Hobart's most longterm developments and it has recently received 1,200 comments from the community consultation process, according to Minister for Infrastructure David O'Byrne. Noting that the area is a once-in-alifetime opportunity for the community to shape Hobart's economic, social and cultural growth, he said that it's worth looking to Docklands and Barangaroo for an idea of the way Macquarie Point will shape the area. 2 December 2013. More.

Buyers Offer Above The Asking Price The number of homes being sold above owner expectations has exploded over the past year with the number of buyers looking between $500,000 and $1.5 million growing by almost a third, new research shows. Market analysis by realestate.com.au has found that nationwide a hefty 41 per cent of buyers in the market across September and October were prepared to bid above the asking price. 29 November 2013. More.

Low Rates Driving Affordability: Report Perth Real Estate Market Heats Up For Summer The market is still red-hot for potential vendors as the spring selling season melds into summer. New research from realestate.com.au revealed sellers were coming out on top of the market, with buyers - in particular investors - willing to pay more to secure a property. 26 November 2013. More.

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The Housing Industry Association Commonwealth Bank Housing Affordability Index results for the September quarter of 2013 are out, and they tell a story of gradual but improving home affordability, driven by further interest rate reductions. The index tracks the relationship between household income, mortgage costs and home prices to determine how affordable properties are for a particular population. 28 November 2013. More.


State Of The Nation Continued… "Market Update"

"What's Happening Internationally"

First Home Buyer Affordability Is As Good As It Has Ever Been

Global House Prices Rising Buy Many Markets Overvalued Says IMF Report

One of oldest clichés in journalism is that they never let the facts get in the way of a good story. And we’re seeing that shallow principle in play daily as media hammer the myth that first-home buyers are being squeezed out of the market. All the available facts say otherwise. 3 December 2013. More.

Housing markets around the world are recovering but real estate in many countries is still overvalued, according to the latest global house price index from the International Monetary Fund (IMF). The index increased in the second quarter of 2013 to its highest level since the end of 2008, propelled by stronger residential real estate markets from Turkey to Hong Kong and recording the sixth quarterly rise in a row. 28 November 2013. More.

Building Approvals Down Residential building approvals eased slightly in October, from a three and a half year high in September, according to the Housing Industry Association (HIA). Despite the fall, HIA chief economist Dr Harley Dale said the new housing approvals data is still very promising. 3 December 2013. More.

Capital City House Price Values Start To Slow Australia's property prices have begun to moderate with capital city dwelling values flat last month. Across the nation's capital cities, the values of dwellings increased by just 0.1 per cent last month, figures from RP Data-Rismark show. 2 December 2013. More.

Comm Bank & Mining Towns What does the Commonwealth Bank’s changing stance on mining towns mean for investors? We’ve all read those adverts in the industry magazines and publications. You know … the ones touting super high rental yields on average houses or townhouses in a far flung mining town. So it was a kick in the teeth for those developers and marketers recently when CBA – Australia’s biggest housing lender – announced that when assessing loan applications for investment properties located in mining towns, from next Monday (irrespective of what actual rent the property receives or is estimated to receive), they will now cap rental yields at 8% for their servicing calculations. 2 December 2013. More.

Controversy Corner

Home Values Continue Growth The RP Data-Rismark International Home Value Index has now recorded its fastest rate of annual growth across capital cities since October 2010. Results for November showed moderate value growth across capital cities over the month where home values rose by just 0.1%. 2 December 2013. More.

Mortgage Choice Fined Over Advertising Claims One of Australia’s largest broker franchise groups has been fined by ASIC for false advertising. The regulator issued a $30,600 penalty following the airing of TV and online commercials last year that claimed Mortgage Choice had, on average, saved customers ‘$10,000 over five years’. 29 November 2013. More.

2013 Buyers & Sellers Report We tapped buyers and sellers around the country to better understand the market, and the message is clear – sellers are coming out on top and buyers – in particular investors – are willing to pay more in order to secure their perfect property. Our 2013 Consumer Insights Report on Buyers and Sellers indicates that the market has shifted to favour those selling a property. 30 November 2013. More.

If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to kevin@smartpropertyadviser.com.au

Some Parting Advice

Tenants Hoping To Find Their (Strata) Voice It's one of the most contentious proposals in the planned changes of our strata laws - the legal right of tenants to sit on the strata committee in blocks where they outnumber resident owners. Given that more than half the strata units in the state are tenanted, that's a lot of awkward moments when owners are discussing tenants with the usual negativity only to remember one of them is among them. 30 November 2013. More.

“It does appear easier to make money by investing for capital growth than it is to find investments that generate positive cash flow. But it’s possible, and I can show you how.”

Until Next Time… Kevin Lee www.smartpropertyadviser.com.au

(02) 8858 3258

State of The Nation Issue 59 December 6, 2013  
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