Viewing by month: January 2013

Rental vacancies increase over December

Recently released figures from property advisory and research house SQM Research show that the residential rental vacancy rate increased by 0.4 per cent on a national level in December 2012, taking the total number of national rental listings to 63,089, and the national vacancy rate to 2.3 per cent. 

The December statistics show a second consecutive monthly rise in rental vacancies, following   periods of modest declines and stagnation in the months preceding November.

SQM Research noted – however, that when the December figures were compared to those of the corresponding period of the previous year (December 2011), there was very little to no change in vacancies. 

SQM Research put the surge in vacancies over the December period down to seasonal factors – namely the fact many university students had vacated student accommodation or rental properties situated near their respective campuses, due to the end of year break.

 “At this time of year, seasonality really can have an impact upon vacancy rates and overall property listings, and this year has proven to be no exception,” said Managing Director of SQM Research, Louis Christopher.

“SQM Research does not seasonally adjust its numbers because we are of the opinion that the use of the data actually receives more value from observing the seasonal change that occurs in the property market.” 

According to the report, rental vacancies increased in all of Australia’s mainland capital cities over December 2012, with Melbourne recording the highest vacancy rate of 3.6 per cent.

The only capital city in which rental vacancies decreased was Hobart, where the vacancy rate fell from 2.1 per cent to 2.0 per cent, with 549 properties available for rent.

For more information on market conditions in your area, please contact your local CENTURY 21 Real Estate Agents, for clear and expert advice.



0 comments | Posted by Charles Tarbey on 29/01/2013 at 12:00 AM | Categories:

Housing price growth slows

RP Data’s most recent Weekly Property Pulse shows that capital city home values have increased at an average annual rate of 1.9 per cent over the past five years. 

While Darwin recorded the strongest price growth of approximately 4.1 per cent over the five-year period, Hobart, Brisbane, and Perth experienced annual average declines of -1.9 per cent, -0.8 per cent and -0.4 per cent respectively. 

RP Data’s figures show that in the five-year period preceding 2007, the overall property market was averaging an annual growth rate of 8.4 per cent, almost 4.5 times the growth rate that the market experienced over the past five years.  

Commenting on the figures, RP Data’s Senior Research Analyst Cameron Kusher said “the global financial crisis, and the subsequent changes in consumer attitudes that it has led to, has largely impacted the results of the most recent five years.”

According to the report, Sydney was the only market to record superior levels of average annual growth over the past five years, compared to the five years prior. 

"Sydney’s housing market performance has actually been stronger over the most recent five years than it was between 2002 and 2007," Mr Kusher said.

Mr Kusher went on to compare the annual growth in values of detached houses with units, revealing that over the 15 years to December 2012, capital city house values increased at an average annual rate of 7.6 per cent, compared with 6.0 per cent for units. He noted – however, that while units had, on average, experienced less value growth than detached houses over the longer term, unit values had risen at a faster pace over the past five years.

Mr Kusher concluded that “it seems unlikely that capital gains in housing will return to the levels enjoyed between 1997 and 2002. The market will be more reflective of conditions over the most recent five years.”

For more information on market conditions in your area, please contact your local CENTURY 21 Real Estate Agents, for clear and expert advice.


0 comments | Posted by Charles Tarbey on 25/01/2013 at 12:00 AM | Categories:

Dwelling approvals rise in November

The Australian Bureau of Statistics (ABS) recently reported that dwelling approvals rose by 2.9 per cent in November 2012, in seasonally adjusted terms, following a 5.1 per cent fall in October. 

The ABS results were largely in line with economists' forecasts of a 3.0 per cent rise in approvals for November.

The month of November saw dwelling approvals increase in Victoria (8.7 per cent), but decrease in South Australia (-13.9 per cent), Tasmania (-7.7 per cent), New South Wales (-4.0 per cent), Queensland (-1.5 per cent) and Western Australia (-1.1 per cent) in seasonally adjusted terms. 

Approvals for private sector houses fell 0.3 per cent, declining in South Australia (-7.6 per cent), Queensland (-4.9 per cent), New South Wales (-2.2 per cent) and Victoria (-0.2 per cent), but rising 6.8 per cent in Western Australia.

While permits to build more traditional, detached houses fell by 0.3 per cent, one of the industry’s most volatile sectors – multi-unit residential properties – showed surprising growth, jumping by 10.1 per cent. 

In the year to November, building approvals were up 13.2 per cent, the ABS data showed. 

For more information on market conditions in your area, please contact your local CENTURY 21 Real Estate Agents, for clear expert advice.


1 comments | Posted by Charles Tarbey on 18/01/2013 at 12:00 AM | Categories:

CENTURY 21 flags attractive buying conditions for 2013

CENTURY 21 believes that 2012 saw a general stabilisation in Australian residential property prices which in turn may provide a strong platform for moderate growth in 2013.

Commenting on the year ahead, Chairman and Owner of CENTURY 21 Australasia, Charles Tarbey, said that “low interest rates, good stock levels and recent price stabilisation in many Australian property markets may, in combination, lure many buyers into the market in 2013.” 

“The Reserve Bank’s four interest rate cuts last year should encourage the market, and with more cuts potentially on the cards, yields on many property investments may further improve which could also lead to a lot of new buying activity from property investors,” said Mr Tarbey.

“However, the fragility of the global economy and local consumer confidence will likely be key impediments to the market achieving the type of growth we saw pre-GFC.”

Mr Tarbey concluded that “while each individual market should be assessed on its merit, there would appear to be many prevalent market conditions that may prove to be very attractive to buyers in 2013.” 

Mt Tarbey’s comments came on the back of RP Data-Rismark’s end-of-year housing data for 2012 which showed that capital city dwelling values eased 0.3 per cent in December, to be down 0.4 per cent over the year.

The company noted that while capital city home values remained 5.7 per cent lower than their historic highs of November 2010, dwelling values were up 1.8 per cent from their low of late May 2012

For more information about the residential property market in your areas of interest, please feel free to stop by your local CENTURY 21 Real Estate office for expert and clear advice. Additionally, if you would like to speak to a mortgage professional about suitable loan packages, please contact CENTURY 21 Home Loans.



0 comments | Posted by Charles Tarbey on 17/01/2013 at 12:00 AM | Categories:

New home sales increase for second consecutive month

Recently released data from the Housing Industry Association (HIA) shows that new home sales improved for a second consecutive month in November 2012, driven by an upswing in sales of detached houses. 

The HIA New Home Sales report revealed that new home sales rose by 4.7 per in November 2012 – a result that was underpinned by a 7.7 per cent increase in sales of detached houses, following a run of five consecutive monthly declines. 

Multi-unit sales declined by 6.9 per cent after a spike in October.

The number of seasonally adjusted new detached house sales increased by 15.8 per cent in New South Wales, 15.6 per cent in Victoria and 6.7 per cent in South Australia. 

Detached house sales fell by 0.1 per cent in Queensland and 6.8 per cent in Western Australia.

HIA economist Geordan Murray said the results was promising when considered against the back drop of late 2012, which saw lower borrowing rates and several states encourage new home building through amendments to first home buyer assistance. 

“The positive result in November was driven by the detached house segment of the market which experienced a trend decline in sales throughout most of 2012. This result should provide some welcome respite," said Mr Murray.

Mr Murray noted that while the November increase is encouraging, new home sales remain at quite low levels:

“If we consider the three months to November, the volume of sales is 15.7 per cent lower than in the same period in 2011. This overall profile shows that we have a long way to go before we could consider sales volumes to be at satisfactory levels,” he said.

“The importance of a broad based rejuvenation of new home building to maintaining the health of the overall Australian economy has been widely acknowledged, but at this stage, new home sales sits among a host of indicators that are yet to provide conclusive evidence that we are on track to achieve this," concluded Mr Murray.

For more information about the residential property market in your areas of interest, please feel free to stop by your local CENTURY 21 Real Estate office for clear and expert advice.



0 comments | Posted by Charles Tarbey on 11/01/2013 at 12:00 AM | Categories:

Capital city home values decrease in 2012

The latest RP Data-Rismark Hedonic Daily Home Value Index shows that home values fell by 0.3 per cent across the nation’s eight capital cities in December, to end 0.4 per cent down over the 2012 calendar year.

Despite dwelling values falling for a second consecutive year, RP Data noted that the annual rate of declines has improved substantially compared to 2011. 

“Capital city home values remain -5.7 per cent lower than their historic highs of November 2010, however, dwelling values are up 1.8 per cent from their low of late May 2012,” said RP Data senior research analyst Cameron Kusher.

“It is important to note that despite the fact that standard variable mortgage rates have fallen by an average of 85 basis points over the past year and by 135 basis points since October of last year, the housing market has still been unable to record growth in values over the year.

 “Home values remain below their historic highs across each capital city and have increased at an average annual rate of just 1.9 per cent over the past five years; it is clear that the previous strong value growth conditions to which many home owners became accustomed of recent years are well and truly behind us.

“Home values in Brisbane, Perth and Hobart remain below where they were five years ago, whereas the other mainland cities have all recorded significantly lower rates of growth in home values over the past five years than they did over the preceding five year period.” Mr Kusher said.

The report shows that Sydney (+1.5 per cent), Perth (+0.8 per cent) and Darwin (+8.9 per cent) each posted an annual rise in values.

The largest fall over 2012 was recorded in Melbourne, where dwelling values declined by 2.9 per cent.

Looking forward to 2013, RP Data predicted that macroeconomic factors, both domestically and internationally, would weigh heavily on the performance of the housing market over the next year.

The report notes that Australian households are saving around 10 per cent of their disposable income and are showing a preference for saving and paying down debt rather than spending – factors that RP Data’s analysts said would make price rises unlikely, regardless of whether interest rates are cut further in 2013.

For more information about the residential property market in your areas of interest, please feel free to stop by your local CENTURY 21 Real Estate office for clear and expert advice.



0 comments | Posted by Charles Tarbey on 10/01/2013 at 12:00 AM | Categories: