Australia
June 2008
Media and market reports
For the last few months we have seen some confusing messages from the media. Property is up, property is down. They can’t seem to make up their mind. Well, which is it?
Simply put, there are some “annual” figures that show growth over the last 12 months as being over 20%, while the current quarterly reports are flatter. When reading these numbers look at the time frame and remember that if it is annual data it will include results from before the election and before we knew what “Sub-Prime” really was.
Sales Market
This month has kicked off with a flurry of sales activity. 70% of our last crop of sales were previous auction campaigns that had been passed in and successfully negotiated in the following days. We are finding that a structured and professional campaign is drawing the buyers into action.
While the market has slowed over the last quarter, it is true there are some motivated sellers who are prepared to negotiate on their prices. There are also buyers in the market who recognise this and are prepared to act, the result being a sale.
Slowly, confidence is returning to the market and more buyers are venturing into making decisions. This will hold well for the next few months.
If you are thinking of selling contact one of the Coldwell Banker team and we will be happy to assist you.
Rental Report:
Last newsletter we covered the simple fact that there are more rental properties currently on the market than there has been. Using apartments in Q1 and Circle on Cavill as examples. A quick analysis of these properties from the end of April to now shows the number of apartments available for rent has doubled. (source: realestate.com.au)
This is contrary to some media reports, who tend to focus on Brisbane houses where vacancy rates are still low. Houses on the Gold Coast are renting reasonably well, as are units outside Surfers Paradise. I would suggest that the vacancy rates in Surfers Paradise are a little cyclical, as we move through winter we will see an improvement.
Information provided by
Coldwell Banker Team (Click here to contact agent)
Coldwell Banker Property Australia
January 2008
Property hotspots for 2008
Residex CEO John Edwards and Property Advisor Margaret Lomas join the TODAY Show to offer tips on how to snap-up a real estate bargain in 2008.
"There are several factors to take into consideration when looking for a property investment," says Ms Lomas. "Such as demographics of the area and whether you are looking to lease the property or to live in it."
Ms Lomas advises that the key aspect in real estate is choosing a suburb where demand in the future is likely to outstrip supply.
"Choose a suburb where there is good population growth and houses are comparatively affordable," she suggests. "Also take into consideration the demographics of the suburb, such as good facilities, schools, hospitals and public transport."
"It's all about choosing an area that is likely to be well sort after in the future," she says.
For Home owners:
"Buy only what you can afford to repay at two percent higher interest rate to accommodate for a rate rise in 2008," she says.
"Consider a basic home today which can easily be added to later," she says. "First home buyers often want everything so it is better to start with something which can be added to later."
"It may be cheaper in 2008 to rent a property but buy as an investor elsewhere," she suggests. "For many, property in the area they want to live will over commit them, with loan repayments rising to two-and-a-half times average rent. These people should rent but still get into the property market as investors in areas with higher yield and lower purchase prices."
For Investors in 2008:
"Become educated about how to invest," she suggests. "Have as little shortfall between what goes in and what comes out as possible. Property which costs you too much from your own pocket each week results in a low ability to leverage into more property, as you do not have the income to do so."
"Understand that high growth does not mean you have to buy in capital cities," she says. "There are an abundance of areas today with lower prices but great economic vibrancy which indicates potential good growth in years to come."
"It is important to buy an appropriate property for your area," she says. "Or you will have problems getting tenants to fill it or selling in down the track."
" Buy widely," she says. "Do not hold all properties in one area as property behaves in cycles, but not the same cycle all over the country. You must be involved in many diverse markets."
Residex CEO John Edwards reveals which locations will boom as popular real estate hotspots in 2008.
Sydney hot spots:
- Good performer - WATTLE GROVE
- First home buyer - WENTWORTH FALLS
Brisbane hot spots:
- Good performer - MANLY
- First home buyer - GRIFFIN
ACT hot spots:
- Good performer - HUGHES
- First home buyer - GORDON
Melbourne hot spots:
- Good performer - EAGLEMONT
- First home buyer - HILLSIDE
Hobart hot spots:
- Good performer - NORTH HOBART
- First home buyer - EAST LAUNCESTON
Adelaide hot spots:
- Good performer - GLENELG
- First home buyer - MOANA
Western Australia hot spots:
- Good performer - ATWELL
- First home buyer - PORT KENNEDY
Darwin hot spots:
- Suburb boom - PARAP
- First home buyer - DURACK
- TODAY Show
Information provided by
Coldwell Banker Team (Click here to contact agent)
Coldwell Banker Property Australia
Wattle Grove named as Real Estate Hot Spot for 2008
- CB MEDIA
Information provided by
Coldwell Banker Team (Click here to contact agent)
Coldwell Banker Property Australia
December 2007
Click on the image to read more about Australia's Real Estate Market
Information provided by
Coldwell Banker Team (Click here to contact agent)
Coldwell Banker Property Australia