Real Estate & Property Investment News in Australia from Propertyshowrooms.com

Australian house prices fall

Fri, 3 Feb 2012 00:00:00 GMT

The value of homes in Australia dropped by 4.8 per cent in the final quarter of 2011, compared to the same three-month period in 2010.

Data collected by the Australian Bureau of Statistics examining the performance of the real estate markets in the country's eight state capitals revealed Brisbane's property prices took the biggest hit, falling by 6.7 per cent annually.

Meanwhile, Canberra held up the best, recording a decline of just 2.6 per cent, while Sydney put in a similar performance with a 2.7 per cent slide.

The quarterly figures released by the organisation indicate that in certain markets, Australian property prices may be making a recovery.

Perth, Canberra and Hobart all posted increases in real estate values in the final three months of 2011 of 0.5 per cent, 0.7 per cent and 0.8 per cent respectively.

Last month, the Housing Industry Association (HIA) published mortgage figures for November 2011, which pointed towards a "modest revival" in the established lending market.

Dr Harley Dale, HIA chief economist, explained lending for purchases of existing homes have now risen in five out of the previous six months.

Recovery signs in Australia's home lending market

Thu, 19 Jan 2012 00:00:00 GMT

There are indications that a recovery is underway in the established lending market in Australia, although finance for new homes "remains soft", a report has stated.

According to the Housing Industry Association (HIA), figures from November last year show an improvement in lending for those purchasing established property in Australia.

However, loans for new homes were "effectively flat" during the same period, with HIA chief economist Dr Harley Dale noting the data represents a fall of eight per cent when compared to November 2010.

Dr Dale commented that several things need to happen if the Australian real estate market is to improve.

"A sustained recovery in new housing, including investment in new rental stock, won't occur without the combination of interest rate cuts, short-term government stimulus and longer-term policy reform," he asserted.

The recent Property Council-ANZ Property Industry Confidence Survey found that sentiment across the Australian real estate sector was broadly positive in December, with professionals in the Northern Territory recording the biggest rise in confidence.

Confidence in Australian property market 'broadly positive'

Mon, 16 Jan 2012 00:00:00 GMT

Confidence levels across the Australian real estate sector remain in positive territory, a new survey has revealed, although some areas are faring better than others.

This is one of the findings in the Property Council-ANZ Property Industry Confidence Survey December 2011, which noted the Northern Territory (NT) saw the greatest improvement in sentiment among real estate professionals.

A new gas deal with INPEX is expected to boost the economy in the NT, with the Property Council's division president in the state Brendan Dunn describing it as a "game changer" for the region.

However, respondents in New South Wales and Victoria - which are home to the country's largest property markets - took a more negative outlook in the final quarter of 2011 than they did in the previous three-month period.

Meanwhile, Warren Hogan, ANZ global chief economist, was optimistic about the future of the nation's commercial real estate sector.

"Tight vacancies, limited capacity expansion and attractive yields will support growing investor interest and are laying the groundwork for a marked increase in valuations as rents rise and yields compress," he stated.

New home sales in Australia rise

Tue, 10 Jan 2012 00:00:00 GMT

A new report has revealed the number of new homes sold in Australia climbed in November 2011, compared to the previous month.

The research conducted by the Housing Industry Association (HIA) and Jeld-Wen found the number of new-build properties bought in Australia during this period increased by 6.8 per cent.

Dr Harley Dale, HIA chief economist, explained interest rate cuts announced by the Reserve Bank of Australia (RBA) have helped boost Australia's real estate sector.

In November, the RBA reduced its interest rate by 0.25 percentage points, bringing it to 4.5 per cent. This was followed by a further 0.25 basis point cut in December, with the country's rate now standing at 4.25 per cent.

Dr Dale described the HIA-Jeld-Wen findings as "healthier but not unexpected", however, he cautioned that the nation's real estate market is not in the clear yet.

He added there is "a long way to go to restore new home sales volumes to acceptable levels," noting that the number of such transactions is currently "running at least 20 per cent below what you could conservatively call healthy".

Australian property 'expected to recover in 2012'

Wed, 21 Dec 2011 00:00:00 GMT

The majority of property markets in Australia are expected to undergo a recovery during 2012, according to a new report.

Australian Property Monitors (APM) has released its State of the Market survey for December this year, noting overall during 2011 "housing markets entered a correction phase with income growth required to catch up with the finance requirements for home purchases".

The organisation added that natural disasters, coupled with low confidence among consumers and a mixed economic performance for the country, have resulted in fewer buyers entering the Australian real estate market.

However, APM is predicting a better performance in 2012, citing anticipated economic growth and rising demand for residential properties as two catalysts that can boost the sector.

Meanwhile, the firm also expects more interest from investors over the coming 12 months and has asserted average house prices in the country will climb by between three and five per cent in this period.

However, Professor from the University of Western Sydney Steve Keen recently predicted in an interview with the Sydney Morning Herald that Australian property prices will fall in 2012, stating the "acceleration of mortgage debt" will push values lower.

Australian house prices 'expected to fall in 2012'

Thu, 15 Dec 2011 00:00:00 GMT

The Australian residential real estate market is likely to see price falls of between five and ten per cent next year, it has been claimed.

Professor from the University of Western Sydney Steve Keen told the Sydney Morning Herald people should expect to see the sector decline in 2012.

"The main force that will drive prices down is precisely the same force that drove them up: the acceleration of mortgage debt," he asserted.

His predictions appear to be backed up by the latest data published by ANZ, with The Economy News citing figures from the financial institution that show the Australian property market is slowing down.

The report claims the country's cooling economy will be reflected in the housing market, noting investors remain cautious.

However, the ANZ study did point to a slight increase in the number of first-time buyers entering the market, which David Cannington, a representative for the firm, attributed to improved affordability following interest rate cuts and falling house prices.

Number of Australian mortgages up

Fri, 9 Dec 2011 00:00:00 GMT

The number of mortgages processed in November for those buying property in Australia increased by 18 per cent compared with October.

This is according to mortgage broker AFG, which found that the number pushed through in Victoria climbed by 26.7 per cent - the biggest growth recorded in the country. In addition, Queensland reported hikes of 20.8 per cent and New South Wales saw increases of 16.4 per cent.

In all, real estate investors accounted for nearly two out of every five products sold during the month - the highest amount on record since the AFG Mortgage Index began six years ago.

"We're experiencing the paradox that weaker global economic conditions and lower rates is good news for Australian property buyers - at least for now," general manager of sales and operations Mark Hewitt remarked.

This news comes after the cash rate in Australia was lowered by 25 basis points to 4.25 per cent, which came into force yesterday (December 7th).

Australian rental sector 'strengthening'

Mon, 5 Dec 2011 00:00:00 GMT

Although the value of homes across Australia's state capital cities has fallen by 2.8 per cent in real terms since the start of 2011, there has been an improvement in the rental sector.

This is according to the latest RP Data - Rismark Home Value Index for October, with Rismark managing director Ben Skilbeck highlighting the changing fortunes of the lettings market.

"While homeowners and property investors have endured a 2.8 per cent tapering in actual home values over the course of 2011, rental growth has been very solid," he stated.

Mr Skilbeck cited figures from the Australian Bureau of Statistics, which show that rents have increased by between four and five per cent so far this year.

He commented that the Australian residential property sector has exhibited "impressive" stability in 2011 when compared to the country's stock market.

Meanwhile, commercial real estate in the nation has experienced a strengthening of gross rental yields, Mr Skilbeck added.

Earlier this month, a survey published by the Royal Institution of Chartered Surveyors found that commercial sector rental expectations for the final quarter of 2011 were positive, despite lower tenant demand.

Australia 'facing oversupply of housing'

Wed, 30 Nov 2011 00:00:00 GMT

One of the problems affecting the Australian real estate sector at present is the oversupply of homes for sale, one expert has claimed.

In an interview with News.com.au, managing director of SQM Research Louis Christopher was not optimistic about the outlook for the industry.

"The worst is still in front of us. There is a huge overhang of stock for the market to work through and it is going to get worse before it gets better," he asserted.

Mr Christopher suggested that further cuts to interest rates are needed if the country's property market is to receive the boost it requires.

However, he added that the economic crisis in the eurozone could have a significant effect on Australia's real estate sector.

He made a similar point when speaking to Smart Company earlier this month, noting that the nation's banking industry has exposure to Europe, which may hold back any recovery if the debt crisis overseas worsens.

Asia-Pacific office rents climb

Tue, 15 Nov 2011 00:00:00 GMT

The Asia-Pacific region is leading the pack in terms of office rental growth during the third quarter of 2011, new research shows.

A report published by Jones Lang LaSalle found that seven out of the top ten office markets were in this area, with two Australian destinations making an appearance.

Perth and Sydney both experienced increases in the amount charged for office space, recording a 10.5 per cent and 6.6 per cent rise respectively.

Melbourne and Adelaide both made it into the top 50 with marginal hikes, while in Brisbane, the market was flat and Canberra saw rents decline by 2.3 per cent.

However, this indicates that the Australian commercial property sector is performing relatively well in comparison to some of the other established office markets around the world.

Dr Jane Murray, head of research for Asia-Pacific at Jones Lang LaSalle, commented: "The picture across Asia-Pacific is diverse, reflecting varying conditions within markets [...] We expect rents to increase in most markets over the short term."

A survey released by the Royal Institution of Chartered Surveyors earlier this month revealed that many professionals are positive about rental expectations in the nation for the rest of this year, although respondents predicted that investor sentiment and tenant demand will slip by the end of 2011.

Australia's commercial property sector 'slowing'

Mon, 7 Nov 2011 00:00:00 GMT

The commercial property market in Australia is exhibiting signs of a slowdown, new data has revealed.

A survey carried out by the Royal Institution of Chartered Surveyors (Rics) covering the outlook for the Oceania region in the fourth quarter of 2011 recorded a slide in both tenant demand and investor sentiment.

However, the organisation noted that rental expectations for the final months of this year remained positive.

In its report, the institution stated that the figures "should be seen in the context of an extended period of strong economic growth and a healthy performance from the real estate sector".

Kaye Herald, managing director at Rics Asia Pacific, commented that the Oceania area is "following the global trends as economic conditions cool".

Research published by Savills at the end of October found that transaction volumes in Sydney's central business district increased markedly during the third quarter of 2011.

As a result, this is the highest number of sales recorded in the city since the second quarter of 2006.

"Now is a good time" to enter the Australian property market

Thu, 3 Nov 2011 00:00:00 GMT

Investors considering buying residential real estate in Australia have been advised that current market conditions make dwellings in the nation attractive.

Chief executive officer of the Association of International Property Professionals Professor Mark Sharp stated: "Now is a good time when interest rates remain low and property prices are not rising as far as they were."

He explained that the exchange rate between the Australian dollar and sterling enhances the country's appeal for British buyers.

Mr Sharp suggested focusing on urban locations in the search for a property in Australia, as the real estate market in these parts of the country continues to be "buoyant".

He noted in particular that central business districts in major cities will always be popular, drawing in companies as well as clients, with workers living on the outskirts of the area.

Last month, Liz Rowlinson, editor of A Place in the Sun magazine, claimed that Perth, Victoria and New South Wales are, at present, among the most popular destinations for Brits seeking a home in Australia.

More deals for Sydney offices concluded

Wed, 2 Nov 2011 00:00:00 GMT

There has been a rise in the level of activity in office markets in Sydney's central business district (CBD), new research shows.

According to a report by Savills, there was a significant increase in investment volumes in this sector of the market during the third quarter of 2011.

The firm revealed that AU$1.07 billion (£701.3 million) was transacted during this period, matching the figures recorded for the 12 months to June this year.

Managing director of Savills in New South Wales Michael Andrews commented: "Evidence of a recovery of the Sydney CBD office market can be seen in recent rental growth, as well as a surge in office sales following the end of the June quarter."

Mr Andrews added that approximately 85 per cent of the deals recently conducted were with foreign buyers.

Last month, QBE Lender's Mortgage Insurance published research which suggested that Sydney's housing market is going to see values rise.

According to the organisation, residential property price rises of between 19 and 20 per cent is expected in the city over the three years leading up to June 2014.

Australian property 'can be affordable'

Fri, 28 Oct 2011 00:00:00 GMT

Although not all regions in Australia have seen their property prices decline, there are still affordable areas that Brits relocating overseas may want to target.

This is the assertion of editor of A Place in the Sun Magazine Liz Rowlinson, who explained there is a "huge spectrum" of homes available on the Australian real estate market.

While some parts of the country are more affordable than the UK, she pointed out the destinations such as Sydney remain "very expensive".

Among the most popular locations for Brits are Perth, Victoria and New South Wales, Ms Rowlinson advised.

Earlier this month, an article for Global Property Guide noted that the Reserve Bank of Australia has been attempting to cool house price growth in the nation.

The publication highlighted interest rate rises that were implemented at the end of 2010, which have succeeded in weakening the real estate sector and reining in climbing property values.

Melbourne housing market 'could see price correction'

Thu, 20 Oct 2011 00:00:00 GMT

The housing market in Melbourne is one of the most likely in the country to experience "a significant price correction", according to new research.

In the Macro Business Melbourne Housing Valuation Report, it is claimed that the residential property market fundamentals in the city are weak, for several reasons.

Among them are the low rental yields, higher-than-average house price growth and the large number of homes currently on the market.

The study also pointed out that Melbourne property prices are "relatively expensive on a price-to-income basis".

Meanwhile, a rise in construction activity coupled with a slowdown in population is resulting in more supply of dwellings than there is demand.

The organisation cited figures from SQM Research, which revealed that there were 65 per cent more residential properties on the market at the end of September this year than 12 months earlier.

However, things are different when you look at Melbourne's commercial real estate sector, with a recent Savills report on the prospects for the city's central business district noting that overseas investors are encouraged by its "strong fundamentals".

Positive outlook predicted for Australian property sector

Thu, 13 Oct 2011 00:00:00 GMT

A new report published by QBE Lender's Mortgage Insurance (LMI) has suggested that the Australian housing market will perform well over the next few years.

The research, which was prepared by BIS Shrapnel, has predicted strong price increases for residential properties in Perth and Sydney, while many other cities in the nation are also expected to experience capital value growth.

While Perth and Sydney are expected to be the top performers with price rises of between 19 and 20 per cent by June 2014, Brisbane and Darwin are not far behind, with their properties set to see 16 per cent and 17 per cent value growth respectively.

Ian Graham, chief executive officer of QBE LMI, stated that his firm is "cautiously optimistic" about Australia's housing sector.

He added: "The ongoing resource demand from Asia should continue to ensure growth in the resource and private sector, with conditions for a significant correction over the forecast period to 2014 just not there."

Earlier this month, the Colliers International 2011 Global Investor Sentiment Survey revealed that Australian real estate investors are likely to focus on their domestic markets, rather than looking overseas.

Cheaper Australian suburbs 'may perform well'

Tue, 11 Oct 2011 00:00:00 GMT

Properties in some of the cheaper suburbs in Australia's major cities are likely to experience strong capital growth, it has been claimed.

An article on news.com.au highlighted certain areas as being "ugly ducklings" that will mature into profitable real estate markets over time.

Everton Park and Manly in Queensland, Alexandria, Cessnock and Port Macquarie in New South Wales and Glendalough and Osborne Park in Western Australia were among the locations singled out.

According to the news provider, properties at the lower end of the price scale usually offers "higher rental returns".

Meanwhile, areas boasting good transport links into city centres and government initiatives to increase the number of jobs available are factors that are likely to encourage strong capital growth in Australian real estate, the publication added.

Last month, spokesman for the Australian Visa Bureau Tom Blackett highlighted the lucrative nature of long-term property investments in the country.

He added that there is "a large disparity" between the values of homes in different regions, allowing buyers to pick up dwellings at a relatively low cost if they avoid major centres, such as Sydney.

Domestic focus for Australian investors

Mon, 10 Oct 2011 00:00:00 GMT

Property investors in Australia are going to concentrate on expanding their portfolios with domestic assets, rather than venturing overseas, according to a new study.

The Colliers International 2011 Global Investor Sentiment Survey found that those active in the Australian real estate sector are now more risk-averse than they were six months previously.

Nerida Conisbee, director of research at the firm, commented: "The survey has shown the majority of Australian investors now see overseas markets as too risky at present, given economic conditions in major financial markets."

However, managing director of investment services and chairman of global investment services John Marasco noted that sentiment about the domestic market is "upbeat", with 60 per cent of respondents stating that they are intending to increase the number of assets they hold over the next six months.

He added that Sydney, Melbourne and Brisbane are top locations among investors, with offices set to be the major target.

Last month, Savills revealed that central business district offices in Melbourne have experienced annual capital growth of 24 per cent so far this year, while rental income is up by an average of ten per cent on a yearly basis.

Australian interest rate hike helps drag property prices lower

Thu, 6 Oct 2011 00:00:00 GMT

The Reserve Bank of Australia (RBA) decision to raise interest rates to 4.75 per cent in November last year has had an effect on the country's housing market, it has been claimed.

Global Property Guide noted that since the rate hike, Australian real estate values have fallen, adding that the RBA moved to cool the market after significant price rises were recorded in the year running up to March 2010.

According to figures from the Australian Bureau of Statistics, the average value of a home across the nation's state capitals fell by 1.9 per cent on an annual basis in June this year.

Of the eight cities, Perth experienced the greatest fall of 4.1 per cent in this period, while only Hobart and Canberra bucked the trend with rises of 2.8 per cent and 2.2 per cent respectively.

The news provider cited numerous reasons why the Australian housing market has avoided a crash similar to those experienced in other developed countries.

Among them were a shortage of new homes due to population growth, stricter lending standards than in the US and record-low rates for interest on mortgages.

Long-term property investment in Australia 'lucrative'

Tue, 4 Oct 2011 00:00:00 GMT

Individuals looking to make a long-term investment abroad should consider property in Australia.

This is because the sector has been described as "highly lucrative" by Tom Blackett, a spokesman for the Australian Visa Bureau.

He added that individuals should not be put off from purchasing homes in the country by the initial prices.

"When you factor in higher wages and a better standard of living, the Aussie property market comes up a winner," Mr Blackett observed.

For those who are looking a good deal, the key is to buy in the right area.

This is because Mr Blackett observed dwellings in Tasmania can cost up to 50% less than those in Sydney.

Individuals will also find that stamp duty and land transfer registration can add an extra six per cent onto the actual cost of an abode, but the National Australia Bank survey showed that price fell in September.

'Many reasons' for Brits to move to Australia

Fri, 30 Sep 2011 00:00:00 GMT

There are plenty of reasons why Britons could consider relocating and buying property in Australia.

This is according to Tom Blackett, a spokesman for the Australian Visa Bureau, who noted the country has everything that people love about the UK, but with much better weather.

He stated the country is among the most popular destinations for those who want to migrate, possibly because of the fact that it is "teeming with social, economic and lifestyle opportunities".

"On the whole, Australia offers a lifestyle that is healthy and rewarding," Mr Blackett observed.

Because of the range of activities on offer, many may be tempted by sunnier climes in the Southern Hemisphere.

Mr Blackett remarked there are over 10,000 beaches to sample in the nation and "almost perpetual summer", while Australia is ranked second in the United Nations Human Development Index.

It comes after Eynas Brodie, editor of Australian Property Investor, remarked house prices down under are holding firm at present.

Sydney average house prices rise

Sat, 24 Sep 2011 00:00:00 GMT

The latest research published by Savills shows that homes in Sydney have seen their values increase.

According to the firm, the average price of a dwelling in the New South Wales city in June rose by 1.6 per cent, with houses experiencing a boost of 3.4 per cent, compared to a year earlier.

However, the number of transactions taking place in the market over this period declined by 16.8 per cent for residential units as a whole and by 19 per cent for houses.

Savills noted that vacancy rates in the city remain very low at 1.5 per cent, citing the most recent data published by the Real Estate Institute of New South Wales.

As a result, investors have "enjoyed increased demand and consistent rentals", with the organisation anticipating that this scenario will continue "due to the continued disparity between the supply and demand of residential accommodation".

Eynas Brodie, editor of Australian Property Investor, recently stated that overseas investors are attracted to the nation's real estate sector for a number of reasons, including its education system, business opportunities and political stability.

'Many reasons' Australia attracts overseas investors

Mon, 19 Sep 2011 00:00:00 GMT

There are numerous reasons why investors choose to purchase real estate in Australia, one expert has commented.

Eynas Brodie, editor of Australian Property Investor, explained that the nation's political stability, school system and the availability of land are just some of the things that draw people to the country.

She also pointed out that foreigners are not restricted by how much they can borrow for a mortgage.

Ms Brodie added that there appears to be a pattern about where overseas investors purchase property.

"Anecdotal evidence shows that foreign investors generally like to buy real estate close to universities and transport infrastructure, such as capital city locations," she stated.

This inclination towards major urban hubs could prove to be an advantage where price is concerned at present, with the RP Data - Rismark Home Value Index from July recording a marginal drop in the cost of buying a dwelling in such locations.

Melbourne showed the largest monthly decline of 1.4 per cent, while on an annual basis Brisbane and Perth have seen the biggest price falls of 6.6 per cent and 6.3 per cent respectively.

Australian housing market 'holding strong'

Fri, 16 Sep 2011 00:00:00 GMT

The key fundamentals in the Australian housing market are helping it to perform during the global economic downturn, it has been claimed.

Editor of Australian Property Investor Eynas Brodie stated that a lack of supply of housing, coupled with low levels of unemployment and a stable economy have helped keep value growth in the real estate market on track.

She acknowledged that in the short term, the residential sector is expected to remain flat, but Ms Brodie is confident that it will pick up.

"As confidence returns and people feel comfortable with spending again, property prices should start moving again," she asserted.

Ms Brodie also pointed out that many Australians are currently saving their spare cash, which may then be ploughed back into the property sector as the economic outlook improves.

The RP Data - Rismark Home Value Index for July revealed that average home prices across Australia's major cities recorded a seasonally-adjusted annual decline of 0.6 per cent.

However, residential markets in Darwin, Sydney and Canberra delivered marginal growth in capital values during this period.

Property values in Australian capitals fall

Mon, 5 Sep 2011 00:00:00 GMT

House prices in Australia's capital cities dropped by 0.6 per cent in July, according to the latest figures in the RP Data-Rismark Home Value Index.

On an annual basis, a fall of 2.9 per cent was recorded, although in Sydney and Canberra, capital values rose by 0.5 per cent and 1.9 per cent respectively in the 12 months to July 2011.

Rismark's international economist Christopher Joye explained that the next interest rate decision by the Reserve Bank of Australia (RBA) could be crucial for the Australian real estate sector.

"If rates do remain on hold, or begin to fall, we would expect to see Australia's housing market find a base and begin to generate capital gains again," he stated.

Mr Joye added that it would be "surprising" if the RBA had "come to the end of its tightening cycle".

A report published by Savills last month named Sydney as one of ten world class cities for residential property investment.

The firm concluded that the Australian location represented the best value among the so-called "old world" destinations that also includes London, Paris, New York and Tokyo.

Decline predicted for Australian property market

Tue, 16 Aug 2011 00:00:00 GMT

One economist has predicted that the Australian property market could experience a significant decline.

In an interview with the Herald Sun, Harry Dent - a US economist - described Australia's real estate sector as "the most over-valued in the western world".

He stated: "I think prices will go back down to where they were in mid-2000, to where young families can start affording a house again - so that could prove a good thing."

Mr Dent also said the property industry in Australia could see a crash similar to the one that occurred in Japan in the late 1980s.

The most recent figures published in the RP Data - Rismark Home Value Index showed that house prices in the nation's state capital cities fell by an average of 0.2 per cent in June compared with May.

Year-on-year, capital values were down by two per cent in June, although some cities such as Brisbane and Perth saw larger falls of 6.3 per cent and 4.7 per cent respectively.

Sydney 'a world-class' real estate location

Fri, 12 Aug 2011 00:00:00 GMT

Sydney is one of ten cities to be singled out by Savills to appear on its World Class Index relating to premier residential real estate.

The Australian destination was also revealed to offer the "best value" among economies classed as "old world", along with New York.

Other locations in this category are Tokyo, Paris and London, while the "new world" cities on the list are Singapore, Shanghai, Hong Kong, Mumbai and Moscow.

Head of Savills residential research Yolande Barnes pointed out that Sydney's property market has real potential for growth.

She explained that the city is "very well placed to benefit from investment from frustrated Chinese and other far eastern investors", but added that its market will need to "open up" to such buyers if it is to capitalise on the opportunity.

According to the most recent figures published in the RP Data-Rismark Home Value Index, Sydney was the best performing state capital in the country, experiencing a year-on-year rise in prices of 0.5 per cent in June.

Australian building approvals fall

Thu, 4 Aug 2011 00:00:00 GMT

Building approvals in Australia have reached a two-year low, new figures have revealed.

Data published by the Australian Bureau of Statistics showed that in June, the overall number of dwellings approved dropped by 3.5 per cent in seasonally adjusted terms compared to May.

Chief economist at the country's Housing Industry Association Harley Dale said that "evidence continues to mount of an accelerated deterioration in new home building conditions".

He went on to describe the situation as "unequivocally weak", noting that housing starts will be running below levels of demand this year.

Queensland saw its approvals for new homes drop by 18.6 per cent in June, while South Australia recorded a decline of 12.2 per cent.

However, Victoria and New South Wales both saw their figures improve, with the number of permits granted for building rising by 6.9 per cent and 3.2 per cent respectively.

Mr Dale stated that taxation on new residential construction in Australia is just one of the areas that needs to be addressed by the government.

Property values in Australian cities 'flat'

Tue, 2 Aug 2011 00:00:00 GMT

New research has revealed that the price of real estate in Australia's capital cities is broadly flat.

According to the RP Data - Rismark Home Value Index, houses saw their worth fall by an average of 0.2 per cent in June, compared to the previous month.

However, not all the cities surveyed registered a drop in property values, with Sydney seeing prices up by 0.5 per cent year-on-year.

Brisbane and Perth did not fare so well, recording a 6.3 per cent and 4.7 per cent decline respectively.

Rismark's economist Christopher Joy commented: "We think the RBA [Reserve Bank of Australia] is likely to raise rates at least once or twice more to address Australia's burgeoning inflation problem, which means dwelling values will probably soften a bit further. This should open up attractive investment opportunities."

Last month, a PRDnationwide survey noted that certain areas of Brisbane offer potential for investors because prices are currently affordable, while improvement works due to be carried out will help boost values in the future.

Brisbane's most affordable areas revealed

Wed, 27 Jul 2011 00:00:00 GMT

A new survey by PRDnationwide has revealed which suburbs in Brisbane, Australia are most affordable - with Kedron, Lutwych and Wooloowin all cited as being good areas to buy in.

Josh Brown, research analyst at the firm, explained that there has been "significant development" in these parts of the city over the last two years.

"This means when those suburbs start to witness price recovery, it could be accelerated due to coinciding with improved amenities and investor interest," he stated.

Mr Brown went on to note that those purchasing property in these locations can expect to receive strong rents if they let the dwelling, while first-time buyers are also being attracted to the more affordable districts of Brisbane.

By contrast, the most expensive suburbs in the city were revealed to be in close proximity to the central business district, with New Farm topping the list with an average house price of AU$1.3 million (£868,017).

In the Western Australian city of Perth, median house prices have dropped for five consecutive quarters, preliminary data from the Real Estate Institute of Western Australia showed earlier this month.

Property sales in Perth also fell marginally during the second quarter of this year, compared to the three months to March, the organisation added.

House prices slide in Perth, Australia

Mon, 25 Jul 2011 00:00:00 GMT

Perth in Western Australia has experienced its fifth consecutive quarter of property price falls, new figures have revealed.

The preliminary findings by the Real Estate Institute of Western Australia (REIWA) show that housing values slid by two per cent during the second quarter of this year, compared to the first three months of 2011.

Alan Bourke, president of the organisation, commented: "Our early data suggests there has been little movement in the median sale price for multi-residential, but turnover for units, villas and townhouses has been stronger than in the previous quarter."

He added that he expects the average value of a dwelling in the city to stand at around AU$475,000 (£315,938) once all the sales information has been collated.

In May, REIWA criticised the state government for failing to take steps in its budget to help boost the provision of affordable housing in the region. The association had previously called for tax breaks for those who own more than one property in a bid to help stimulate the real estate sector and introduce more rental accommodation.

Australian property prices down 2% in Q2

Mon, 18 Jul 2011 00:00:00 GMT

Prices for property in Australia fell by two per cent in the three months to June, according to a new report.

The most recent National Australia Bank (NAB) Residential Property Index also shows that house prices declined in all states and rental growth slowed across the country, although the latter still remains in positive territory.

Queensland saw the largest drop in values during the second quarter, mainly as a result of the ongoing effects of the floods that took place there at the start of the year.

Despite this, the NAB predicts that property prices will begin to recover in the next few years, hitting normal levels by June 2013.

Capital growth is most likely to be seen among properties worth AU$500,000 (£332,558) or less over the next 12 months.

The forecast appears to be at odds with a recent report from Deutsche Bank's Gus Medeiros, who said that Australian property prices will continue to fall, according to Bloomberg.

Australian property prices 'likely to see further drops'

Wed, 13 Jul 2011 00:00:00 GMT

Experts have said that those considering property investment in Australia will see prices continue to drop.

Gus Medeiros, head of credit research and strategy at Deutsche Bank, wrote a report for the financial institution claiming that there is set to be a 30 per cent fall in average house values in the country.

According to Bloomberg, house prices will come down in line with recent changes, which saw a 0.3 per cent drop in property values in the eight capital cities in Australia, while the number of homes available is also increasing.

However, banks may have a hard time dealing with the decrease in house prices and their problems are set to be compounded by a nine per cent default rate, which could affect lending, Mr Medeiros also warned.

RP Data recently reported that house prices across Australia are down 1.2 per cent year-on-year, having dropped 2.7 per cent in the first five months of 2011.

Getting Rich with Investing in Property

Thu, 7 Jul 2011 00:00:00 GMT

Property investment is one of the opportunities most people would like to venture in, however, it is not wise to get in blindly without conducting a proper research of the investment conditions. Proper research and consultations with experts in this respectful field can get anyone rich with investing in property in the end.

Investing big money is not a game and the whole process needs to be thought over in detail. There are many considerations to be made before making any property investment decision due to the risks involved, the prevailing economic situations also play a major role during your investment property decisions.

Investment property, besides the fact that it is considered less risky than shares; it has two major advantages that attract most investors. Most people use borrowed money to fund their investment ideas. There is usually a tax benefit associated with negative gearing in the property market. Negative gearing occurs when the rental income is lower than the interest on loan and the cost of your property maintenance. This takes the taxable income to a lower bracket, thus saving a lot on tax, which contributes greatly to the income generated by investment property.

Besides the rental income and tax benefits, there is usually another advantage under Capital growth in the property investment market. Capital growth can help investors get rich with investing in property since they can use the window of opportunity that comes with investment property and capital growth. Every investor needs to use that advantage. Owners can use this to borrow for further property investments or developments that better their lives. Using expert advice can help you reap maximum gains since they know the best indicators for capital growth in the realty market.

One cannot be superficial when making decisions about investing in property. Investment property decisions require some other considerations like the location, which should provide for an environment for growth and development. Buying away from your home also helps make your decision easier when it comes to buying and selling. Sentimental attachment can affect some of your decisions. This comes in handy because sometimes people are forced to sell their properties quickly to alleviate the risk of decreasing property value. Some properties are easier to manage, especially apartments when compared to single houses since there are some shared benefits like maintenance costs and many more.

Sometimes property investment can demand a lot of your time, this should not deter any interested party since there are property management services that can ensure your capital venture succeeds at very affordable prices. It is always advisable to hire a firm which will provide an investor with a serious help thus helping them with all the details and points that must be taken care of and mustn’t be forgotten when investing in property.. This not only eases stress from you, but also exposes you to better management and information from experts who have first hand information in the realty market.

Article written and supplied by Anna K.

Anna K. is a journalist from Brisbane, Australia. She writes for several blogs about finance topics such as real estate, insurance and several others which attract attention of many readers.

Could the Australian housing market take a hit?

Tue, 5 Jul 2011 00:00:00 GMT

Australia's housing market could be set for a slump as home prices drop to a three-year low in 2011.

According to Bloomberg, Australian property could see values tumble as much as 40 per cent in the near future as overseas investors cite high debt, increasing interest rates and expensive dwellings as problems for the sector.

Economist at JPMorgan Chase & Co Ben Jarman said the country sticks out as the one nation that has not had a "meaningful correction" following the property price bubble bursting.

He remarked: "The thinking among market bears is that surely that domino has to fall as well, particularly when you saw a very strong year for price growth in 2009 and 2010."

However, industry analyst firm BIS Shrapnel predicts the housing market will not crash, instead forecasting steady prices throughout the rest of the year and moderate growth until 2013.

RP Data recently revealed that the median value of a home in the country's eight capital cities was AUD$470,000 (£315,100) in May.

Australian property market 'to start recovery'

Wed, 29 Jun 2011 00:00:00 GMT

Property prices in Australia are expected to remain steady throughout the rest of this year, one business research organisation has predicted.

BIS Shrapnel has published its Residential Property Prospects 2011-2014 and stated that a crash in the market is not anticipated.

In fact, the firm commented that some of the nation's state capitals should experience "moderate price growth over the following two years", despite a drop in the median value of homes being recorded in many areas in the first three months of 2011.

Meanwhile, chief executive officer of Metropole Property Strategists Mike Yardney agreed that the Australian real estate sector is on the road to recovery.

He cited population growth, a culture of homeownership and a lack of new developments as factors that could support property prices and underpin growth within the industry.

Mr Yardney also noted that due to a shortage of homes in certain areas, rents are expected to rise, which could be good news for any investors with residential properties in their portfolios.

More stock available in Australian cities

Sat, 18 Jun 2011 00:00:00 GMT

There was 30 per cent more stock available in the Australian property market during May 2011 than a year previous, data from SQM Research has revealed.

On average, the number of properties available to purchase increased 29.7 per cent year-on-year to May.

However, in some cities the rate was even higher. Melbourne led the way, with a year-on-year increase in stock available of 49.6 per cent.

SQM Research chief Louis Christopher said that this was a huge rise.

"Year-on-year, we are still seeing an extensive increase - comparatively speaking, the amount of stock on market is still on the rise," he added.

Mr Christopher forecast that the high level of stock currently available is likely to have an impact on the price of homes in the country.

"We've always said the decline on house prices will be mid to high single digits, and we still hold to that because there is still weakness in demand side, but what this means is that if listings do peak, we will unlikely see falls in the capital cities in the double digits," he confirmed.

Regional variations emerge in Australian property market

Thu, 9 Jun 2011 00:00:00 GMT

Regional differences are emerging in the Australian housing market, with some regions reporting price rises and others seeing values decline.

Sydney and Canberra are seeing real estate values continue to climb, but those in Perth and Brisbane falling, according to the latest house market index.

In addition, the figures show that cheaper properties are selling better than the luxury end of the market, with interest rates and natural disasters such as the floods in January taking their toll.

According to Tim Lawless, RP Data's research director, expensive suburbs have helped drag the overall market down.

Indeed, over the year to end April, properties in the most expensive suburbs fell 5.4 per cent. This compares to declines of 0.9 per cent and 0.5 per cent in the middle priced suburbs and cheapest suburbs respectively.

"The luxury end of the housing market is also showing its volatility. During the growth phase of the cycle the most expensive homes realised the highest capital gains," he said.

"Yet as the market cools premium home values seem to be losing steam the fastest."

New home sales down under are 'sluggish'

Wed, 1 Jun 2011 00:00:00 GMT

Evidence of a lull in the Australian property market has been further reinforced by new figures which show that new home sales remain subdued.

A report published yesterday by the Housing Industry of Australia (HIA) found that home sales edged up by 0.2 per cent last month, with activity well below the long-term average.

According to experts within the sector, this decline in activity is a direct result of weak buyer sentiment and excessive government regulation.

Indeed, so far this year sales of new detached houses are 22 per cent below the long-term average and sales of multi-dwelling developments have fallen behind their long-term levels by more than 50 per cent.

''Clearly, the higher interest rates of 2010 and the speculation about rate hikes sooner rather than later is not doing a lot for confidence and demand in the industry,'' HIA chief economist Harley Dale said.

Elsewhere, A Place in the Sun recently claimed that there are still plenty of investment opportunities for potential buyers in Australia.

Gap year students could boost Aussie buy-to-let market

Tue, 31 May 2011 00:00:00 GMT

Buy-to-let investors in Australia might want to try and take advantage of the country's enduring popularity with gap year travellers.

Janice Kurrle, UK marketing manager at the South Australian Tourism Commission, explained that the similar culture and language meant that the country is particularly popular with Brits.

"Australia is a destination which is quite appealing although it is far away," she told researchers.

Buy-to-let investors could be tempted to try and take advantage of this burgeoning market, with property located close to major tourist sites likely to offer the best potential returns.

"There are a lot of attractions in Australia which are quite alluring to the gap year traveller, things like the Great Barrier Reef, Kanga Island, Uluru and Sydney," Ms Kurrle explained.

It follws a recent report from A Place in the Sun which suggested that despite recent price falls in Australia, there are still plenty of investment opportunities for potential buyers.

Aussie property market offers great 'buy-to-let opportunites'

Fri, 27 May 2011 00:00:00 GMT

Despite the Australian property market recently having some of the sparkle taken off, there are still plenty of investment opportunities for potential buyers.

In particular, the buy-to-let sector still boasts a wealth of prospects for investors, A Place in the Sun reports.

The average price of a home in Australia fell by 0.4 per cent in the first quarter of this year and 2.1 per cent year-on-year, according to statistics released by RP Data-Rismark. The company added that average rental rates have appreciated by 4.6 per cent.

Highest yields can be achieved in Darwin, followed by apartments in Hobart and Canberra, Brisbane, and Sydney.

Tim Lawless, research director at RP Data, commented: "In contrast to the fall in home values, gross rental yields have been improving with apartments and houses now delivering a gross return of 4.9 per cent and 4.2 per cent, respectively, in March 2011.

"With household incomes growing at six per cent per annum, interest rates potentially approaching the peak of the tightening cycle, rents increasing, and house values going nowhere, buyers are seeing an improvement in their position."

Aussie homeowners adopt cautious view of property market

Wed, 25 May 2011 00:00:00 GMT

A new survey of Australian homeowners and investors has found that less than half of the country's population believe that now is a good time to buy real estate.

High living costs, interest rate rises and volatile prices are all weighing on potential buyers' minds and have helped to create a cautious environment.

The research, by Homeloans Ltd, comes after it was reported last week that house prices in Australia are falling.

Meanwhile, property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home.

This is according to Australian Property Monitors, which noted that in the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, the Australian reports.

It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods.

Brisbane is cheapest place to buy Australian property

Wed, 4 May 2011 00:00:00 GMT

Property hunters looking for real estate down under may be interested to learn that Brisbane is the cheapest place in the country to purchase a home, it has been revealed.

In the March quarter the average house price in Brisbane was $448,669, compared with $452,546 in Adelaide, according to Australian Property Monitors, The Australian reports.

It has been a slow and steady decline for Brisbane, with houses falling by 4.3 per cent over the past 12 months, a figure which has been compounded by the recent floods.

Andrew Wilson, Australian Property Monitors senior economist, told the news provider that Brisbane is a housing market where confidence has been down for a while, with the Queensland economy underperforming for the past few years.

"When that happens, people aren't as keen to buy and on the other end sellers decide to hold on to their house and not to sell," he said.

"The floods in Brisbane were also a one-off factor in the March quarter, but I think their effect will be felt over the rest of the year."

Brits look to emigrate, with Oz topping their wish list

Thu, 28 Apr 2011 00:00:00 GMT

Australia has emerged as the top destination for Brits looking to emigrate.

The temptation to leave the UK in search of pastures new is now stronger than ever before, the latest research from Aviva has found.

Some 46 per cent of the 1,000 consumers questioned in the study claim that they are considering a permanent move abroad, with the insurance firm claiming that recent austerity measures are the driving force behind the unrest.

And demand for property in Australia may be set to rise, with respondents stating that their ideal move would be down under.

"When times are tough, it might seem natural to set one's sights on moving abroad," Teresa Rogers, business lead for International PMI at Aviva said.

"But our survey shows that there are certainly pros and cons to moving and people need to plan carefully if they are considering making their dream a reality."

Meanwhile, Colliers International recently claimed that the level of distressed property sales in Australia will shoot upwards over the coming 12 months as the country's property market recovers.

Investing in a Holiday Home - What to Expect

Wed, 27 Apr 2011 00:00:00 GMT

When you invest in a holiday property, you risk letting your emotions get the better of you at the expense of your finances. Fortunately, a little wise advice can help your holiday home provide you some income as well as great holidays and hopefully selling your house will never become a necessity.

Some owners love having a holiday home at their disposal and are satisfied if they can make $10,000 and pay the land taxes. Others pull in up to $60,000 a year for a handsome return on their investment, but must remain heavily involved, looking after the home between tenants, providing keys, and so forth. What is most important to you—return or lifestyle?

Rates for short term rentals are certainly superior to long term. A one bedroom in Sydney with an unfurnished return of $400 a week will likely earn $800 weekly as a short term, furnished rental property, minus about 20 percent for the management fee.

However, how often will you be able to pull in top rents? In a metropolitan area you may well get 90 percent occupancy, but in a regional area you may achieve only 20 to 40 percent. Management fees also vary wildly, from 16 percent plus a $90 cleaning fee each rental in Victor Harbor, to up to 50 percent on the Gold Coast.

It’s also important to consider actual cash flow versus high rents. Rental properties may stay empty for weeks at a time, but you’ll still need to pay the mortgage, while maintenance and management costs cut into your gross income and choke your cash flow.

Holiday letting can often be more lucrative than permanent rentals. For instance, a five-bedroom house can bring in as much as $75,000 a year in Lorne, Victoria. This equals a 6.9 percent gross yield, based on the current price of similar homes in Lorne. This is substantially more than the 5.5 percent yield for permanent rentals, according to the July 2009 listing in Australian Property Monitors.

Keep in mind that banks view holiday rental properties as higher risk, so investors may have to contribute a higher deposit. Another crucial aspect is the income tax break. Depreciation benefits and regular tax deductions may be associated with furnishing holiday rentals, depending on strategy. The Tax Office states that deductible property expenses are valid only in relation to the period that tenants actually occupy the property, or it is truly free for commercial rental. Travel costs are likewise deductible for true maintenance, but not personal trips.

Due to capital growth and the phenomena of sea change, owners of holiday homes in certain seaside locations have profited enormously in the past ten years. An idyllic location with a small local population and enough appeal to attract holiday-makers every year may be the key. Holiday homes that previously barely broke even in rental fees have risen in value by hundreds of thousands of dollars in the past ten years.

Even with current, higher purchase prices, there is still growing room in the right locations. Seaside locations will always have the potential for long term capital growth, and some continue to experience healthy price increases even in the current economy. Still, investors must be able to cover costs when seasons are slow. A property in an established city or town inhabitants will provide more reliable ordinary returns than in a remote beach village. In addition, amenities and infrastructure are needed for eventual capital growth.

Even well-known locations currently offer great bargains, such as the Gold Coast. True beachfront properties in older structures are available there for around $300,000, a real steal.

Still, remember that holiday homes are an investment in lifestyle with the goal of long term gain. Body corporate fees and renovation costs can be quite high, and you will need to own the property about ten years to get about 10 percent a year in capital gains. However, that’s better than for general housing, and some properties reap even more.

Independent one or two bedroom properties appeal to more buyers and provide the option of permanent occupancy. However, beware of council zonings. Some complexes do not permit more than three month occupancy, making eventual permanent letting or occupation impossible.

To summarize, you need to be a good marketer and manager of your property in order to reap big gains from a holiday home. If you simply want a place for a weekend getaway in a prime locale, just be ready to shoulder many costs yourself. Either way, with realistic expectations, you can make the best of your holiday home.

Article written and supplied by Anna K. on behalf of Sell My Castle

Anna K. is a journalist from Brisbane, Australia. She writes for several blogs about finance topics such as real estate, insurance and several others which attract attention of many readers.

Australian distressed properties to increase in popularity

Wed, 13 Apr 2011 00:00:00 GMT

The level of distressed property sales in Australia will shoot upwards over the coming 12 months as the country's property market recovers.

Colliers International has claimed that there will be a double-digit increase in the number of foreclosed sales, with lenders desperate to offload such assets from their books.

"We are expecting a lot of larger assets, say A$20 million-plus assets, to come onto the market due to the improvement of the property market," Mathew Tiller, Colliers research manager, told Reuters.

Indeed, Mr Tiller added that he expects double-digit growth in value and volume of distressed assets over the next 12 months, with development sites and flood-stricken farmland to figure among the sales.

It follows news that property sales in Australia have petered off following their strong growth last year.

The latest Housing Industry Association (HIA) figures have revealed that sales of new homes were almost static in February compared to the previous month.

House sales in Oz slowing

Fri, 8 Apr 2011 00:00:00 GMT

Property sales in Australia have petered off following their strong growth last year, the latest Housing Industry Association (HIA) figures have revealed.

Sales of new homes down under were almost static in February compared to the previous month, the statistics show.

The survey also found sales of homes in multi dwelling developments were down 7.6 per cent, while detached house sales rose 1.5 per cent.

HIA chief economist Harley Dale said the positive January figures had failed to extend to February, although detached house sales in Victoria went up by almost three per cent.

"At the very time when new home conditions need to be continually improving we are faced with compelling evidence of a considerably weaker 2011 compared to last year," Mr Dale said.

Meanwhile, a survey by National Australia Bank has found that house prices in Australia are forecast to grow by just 0.6 per cent over the course of this year.

According to the research, access to credit is currently the "biggest impediment" stopping people from buying homes and pushing prices back up.

Slow growth predicted for Australian housing market

Wed, 6 Apr 2011 00:00:00 GMT

House prices in Australia are forecast to grow by just 0.6 per cent over the course of this year, a survey by National Australia Bank has said.

According to the research, access to credit was the "biggest impediment" stopping people from buying homes and pushing prices up.

Most respondents to the survey expected the strongest growth in values to occur in Western Australia (up 1.1 per cent) and New South Wales and the ACT (up 0.9 per cent). The weakest area is expected to be South Australia and the Northern Territory, with respondents expecting a 0.2 per cent decline in home prices over the next year.

However, while prices are expected to remain fairly stable, investors and agents are more optimistic about the rental market.

They noted that the year will see higher rents, with survey respondents predicting an average 3.5 per cent increase in residential rents.

Western Australia, New South Wales and the ACT were again expected to see the biggest rent rises of 4.6 and 4.3 per cent respectively, while Queensland rents are only tipped to rise 2.5 per cent.

Australia tops Brits' wish list

Tue, 22 Mar 2011 00:00:00 GMT

Demand for property in Australia could be set to rise following the release of the latest search statistics from Rightmove.

The real estate portal revealed that the number of enquiries for real estate down under increased by 114 per cent over the course of the past two months.

Robin Wilson, head of overseas for Rightmove explained that the rise is in line with common trends seen at the start of the year, with Brits dreaming about starting a new life abroad.

"But nothing on this scale before ... people seem to be moving towards wanting more authentic destinations," he added. "I suspect when we review this month's figures searches ... those for Australia may well be up again after a series of TV programmes on relocating there."

However, those looking to buy property in the country may be interested to learn that mortgage delinquencies in Australia rose in the fourth quarter of 2010 and are expected to increase again in the first quarter of 2011.

This is according to research conducted by Fitch Ratings, which noted that more home borrowers were one or two months behind on payments over the course of the quarter.

Australian rents surge in capital cities

Thu, 17 Feb 2011 00:00:00 GMT

Individuals with property in Australia will be interested to learn that the cost of renting a home in the country's capital cities jumped in 2010.

And experts have predicted that further gains will be seen in this coming year, as demand continues to outpace supply, Dow Jones reports.

Residential rents in Sydney for a two-bed apartment climbed seven per cent over the last year, making the city the 13th most expensive in the world in terms of rental costs.

"All of those holders of property that benefited from house price gains are now looking at their yields and saying they haven't done much since 2009, so I'll have to bump that up a little bit," said Ben Jarman, an economist with JPMorgan in Sydney.

"They will see their soft to sideways movement in dwelling prices and cast rents up quite a bit, which will weigh on living costs and inflation."

According to the latest figures from RP Data, home sales in capital cities down under accounted for a massive 63 per cent of all purchases during November 2010, Business Spectator reported.