November 2009
3 posts
$40bil LNG investment looms for Qld
The Queensland Government has moved to ensure Queensland’s future domestic gas supply, while providing industry with the certainty it needs to kick off its $40 billion LNG investment.
The Government has decided to set aside future gas fields for future domestic supply if needed and rejected an option to require a percentage of gas from all fields to go to domestic supply. “We want to...
Brisbane unit sales up 31%
A 31% rise in new apartment sales in inner Brisbane has coincided with a $70,000 price increase, according to Colliers International.
There were 273 new unit sales in the September Quarter - up from the June Quarter’s 209 sales.
Colliers’ Brisbane Apartment Report reported the weighted average sale price was $636,190.
About $170 million has changed hands in new residential apartment...
Home loans up strongly in Sept Qtr
A home construction boom has been predicted after record numbers took out mortgages in September.
Almost 50,000 Australians took out mortgages for purposes other than refinancing, a seasonally adjusted record. About 7,600 were construction loans, the highest in 15 years.
The latest Australian Bureau of Statistics housing finance figures reveal a 73% increase in demand for housing finance from...
October 2009
2 posts
Fixed-rate loans rise after RBA increase
There has been a spike in fixed-rate home loan applications since the interest rate rise earlier this month, according to financial comparison website RateCity.
Fixed home loan applications at www.ratecity.com.au jumped 41% in the week after the official cash rate moved 25 basis points to 3.25%, compared to the previous week.
“This shows there are many Australians out there who are paying a...
Vic building continues to rise
Victoria’s building industry has grown for the second consecutive month, with significant growth in the value of building permits in most regions of the state.
Building Commissioner Tony Arnel says the value of permits issued in August 2009 totalled $1.9 billion, a 12% increase from $1.7 billion in August 2008.
“All regions except Inner Melbourne and Gippsland experienced growth, with rural...
September 2009
5 posts
Melbourne vacancy 1.4% - or is it?
The REIV says Melbourne’s residential vacancy rate rose slightly in August to 1.4%, compared with 1.2% in July. However, data from independent sources suggests the vacancy rates are considerably higher.
The institute says vacancy rates in Melbourne have remained between 1.2% and 1.4% for over 12 months. “The last time we recorded a vacancy rate of over 2% was in December 2005,” it...
Adelaide vacancies tighten to 1.3%
Adelaide’s vacancy rate tightened to 1.3% in August despite reports of a quieter rental market, the Real Estate Institute of South Australia says.
Anecdotal evidence from property managers suggests the falling vacancy rate can be attributed to a smaller number of properties coming onto the market.
No section of the market had a vacancy as high as 2%. The central City market had a vacancy...
$43bil Gorgon officially approved
The largest single resources project in Australian history has been officially approved.
Gorgon gas project partners Chevron, Shell and ExxonMobil have announced they have made the final investment decision to build the first phase of the Western Australian development at a cost of $43 billion.
The decision was expected, given that the project partners have already handed out contracts worth...
Economic growth again confounds economists
The Australian economy grew 0.6% in the June Quarter, confirming that the nation has avoided a recession.
The growth rate was three times stronger than that predicted by economists – who have, yet again, got it spectacularly wrong by under-estimating the Australian economy. The concensus forecast among economists was 0.2% growth in the June Quarter.
The June Quarter performance follows 0.4%...
August 2009
5 posts
Building approvals up 7.7% in July
Residential building approvals rose 7.7% in July, following a 9.9% rise in June. Approvals for private homes rose for the 7th consecutive month, with 12,048 new homes approved in July, according to the Australian Bureau of Statistics.
The July figures included a 35% increase in approvals for apartments.
Economists had predicted a 3.3% increase in July, reinforcing their unerring ability to...
Survey reveals importance of The Shed
Half of Australian men say women don’t understand the importance of the Great Aussie Shed, the inaugural Bankwest “Shed Index” has found.
The latest Bankwest Social Indicator Report finds that the average Australian shed and its contents are insured for $15,900, while one in three people use their shed as a “dumping ground” for junk.
The Shed Index found – unsurprisingly – that 90% of primary...
SA market shows recovery signs
South Australia’s property market continues to show resilience as consumer confidence rises and house prices hold their value, according to the Real Estate Institute of South Australia (REISA).
The release of the REISA/Bendigo Bank Market Update for the June quarter suggests the beginning of a recovery in the SA market.
“There has been an increase in consumer activity, with the number of...
Stay-at-home Gen Y costs plenty
Generation Y is the most costly generation to raise in history, costing parents $6,000 a year on top of the $200,000 already spent to raise each of them from birth, new research by BankWest shows.
The Social Indicator Series Report shows just how expensive the best-educated and tech-savvy generation in history has been for Baby Boomer parents.
It also reveals that 63% of three Gen Ys still...
Jobless rate steady at 5.8%
It appears increasingly unlikely that unemployment which reach the pessimistic Federal Budget forecast of 8.5%.
The national unemployment rate was unchanged in July, remaining at the 5.8% level reached in June, according to the Australian Bureau of Statistics. Once again, this was a significantly better result than that predicted by economists, who forecast a jobless rate of 6.0% for July.
One...
No change to official interest rate
The Reserve Bank of Australia has left interest rates unchanged for the fifth month in a row. It decided today to leave the official cash rate at a 49-year low of 3%.
This was in line with most expectations, with growing signs of recovery in the Australian economy.
July 2009
9 posts
Dwelling approvals up 9% in June
Approvals for new houses and units rose 9.3% in June, compared to May, continuing the steady rise in approvals since the beginning of the year.
Approvals, however, remain 14% lower than June 2008.
Seasonally-adjusted, approvals rose 4.9% to 8,385 houses, while approvals for other dwellings were up 28% to 2,156.
The total value of new residential buildings approved rose 36% in June.
Adelaide rent market still tight
The rental market in Adelaide has tightened with the vacancy rate dropping to 1.3%, according to the Real Estate Institute of South Australia (REISA).
REISA President Robin Turner says Adelaide’s vacancy rate has not exceeded 2% since June 2005.
“Anecdotal evidence from property managers suggests properties under $250/week are in high demand, while properties above $350/week are attracting...
Inflation drops to 1.5%
The annual inflation rate has dropped from 2.5% in the March Quarter to 1.5% in the June Quarter, according to figures out today.
This is the lowest level in a decade and compares with a peak of 5% in the year to September 2008.
The result is in line with economists’ forecasts, which is a highly newsworthy event in itself as they seldom get these things right.
SMSFs need to beware "death duty"
Around 2,500 Self-Managed Super Funds (SMSFs) are being set up every month with an average balance of $454,000, according to the Self-Managed Super Fund Professionals’ Association of Australia.
But care is needed. Lifeplan Funds Management says SMSF owners may unwittingly saddle their beneficiaries with an unexpected tax liability of tens of thousands of dollars. Alison Massey of Lifeplan says...
Commercial lending up in May
Commercial finance commitments rose 4.0% to $28.3 billion in May, according to the latest figures from the Australian Bureau of Statistics.
As previously announced, housing finance for owner-occupation rose 2.3% to $17.05 billion.
Personal finance commitments, seasonally adjusted, fell 2.9% to $6.03 billion in May, the ABS says.
Sydney revival forecast by magazine
Sydney’s property market is on the cusp of a significant recovery, according to BRW magazine.
The magazine quotes information from Colliers International, Mortgage Choice, BIS Shrapnel and Property Insights to support the argument that Sydney is coming back to favour with property investors.
An investor sentiment survey from Colliers International found 45% believed Sydney to be the best place...
SA market shows hint of recovery
The South Australian market is showing signs of a recovery, with sales volumes up strongly and median prices rising also.
The Real Estate Institute of South Australia says the state’s median house price rose 2.3% in the June Quarter to $330,000 (which is still 1.5% below the level of a year ago) while the median price in metropolitan Adelaide reached $358,000, up 0.85% for the quarter.
REISA...
Jobless rate up 0.1% in June
The unemployment rate rose slightly in June, from 5.7% in May to 5.8%. The median market forecast from economists was for the jobless rate to increase to 5.9%.
Full-time employment decreased 21,900 to 7.612 million in June, whiel part-time employment rose 400 to 3.151 million, according to the Australian Bureau of Statistics.
The participation rate was 65.3% in June, compared with 65.4% in May.
June 2009
7 posts
50% favour boarder to help with bills
A poll by PRDnationwide shows one in five homeowners would consider having someone rent a spare room to help pay the mortgage.
Another 14% of respondents already have someone renting a room and a further 15% would if they had space.
PRDnationwide research director Jonathan Rivera says the results are not surprising given the current economic climate.
“Having someone contributing $100 a week to...
Law service challenges bank fees
Consumer compensation law firm Financial Redress has started a service to help home buyers challenge banks charging excessive exit fees on the early repayment of mortgage loans.
Managing director James Middleweek says people seeking compensation for excessive fees charged by banks have “inundated” the law firm with their claims. These relate mainly to penalty charges on savings and...
Adelaide vacancies tighten to 1.5%
Despite evidence of a slowing rental market, Adelaide’s vacancy rate tightened to 1.5% in May, according the Real Estate Institute of South Australia.
The West continues to record a vacancy rate above 2% while the South and City areas have vacancy rates below 1%. Anecdotal evidence from property managers suggests tenants are shying away from beachside areas (West precinct) in the cooler...
NSW rental market tightens further
Sydney’s rental vacancy rate is at its lowest level in 12 months, according to the latest data from the Real Estate Institute of NSW.
The percentage of available rental properties across Sydney dropped from 1.5% in April to 1.0% in May. It’s the lowest vacancy rate recorded since May 2008 and is described by REINSW president Steve Martin as “extremely disappointing”.
Vacancies are highest in the...
NSW cuts stamp duty on new homes
The NSW State Government is cutting the stamp duty on newly-built homes by buyers who are not first-home buyers. It cuts stamp duty for second-home buyers and investors, reducing the tax 50% for properties under $600,000.
The NSW Housing Construction Acceleration Plan, announced in the State Budget, starts on 1 July and will save investors and home buyers up to $11,245 on properties worth less...
Qld to spend $18bil on infrastructure
The Queensland Government says its State Budget is designed to protect existing jobs and create new ones.
Key spending in the Budget includes $18 billion on infrastructure in FY2010, including $7 billion on transport and roads, $1.3 billion on health, $3.2 billion on energy, $1.8 billion on education and $1.45 billion on social housing.
Specific projects to receive funding include the Wyaralong...
RBA leaves interest rates unchanged
The Reserve Bank of Australia decided today (Tuesday, 2 June) to leave official interest rates unchanged. The official cash rate remains at 3%, the lowest rate in almost 50 years.
Its decision comes against a background of improving economic data, with a sharp improvement in the nation’s international trade deficit in April. Building appovals also improved in April, the third consecutive...
May 2009
8 posts
Sydney vacancies up - but still only 1.5%
Sydney rental vacancies are at their highest level in two years - but remain well below 2%.
The Real Estate Institute of NSW says Sydney vacancies increased 0.3 percentage points to 1.5% in April. It says many former renters are becoming first-home buyers, freeing up rental stock.
Vacancies are now the highest since October 2007 but still at a level where supply does not match demand.
Newcastle...
Adelaide vacancies still below 2%
The vacancy rate in Adelaide continued to ease in April, but still remains below 2%.
The Real Estate Institute of South Australia (REISA) said the vacancy rate for metropolitan Adelaide moved to 1.77% in April.
The REISA vacancy rate survey is broken down into six main areas:-
City and North Adelaide: 2.3%; Western Suburbs: 2.1%; Southern Suburbs: 1.95%; Eastern Suburbs: 2.2%; Northern...
WA units win first Green Star rating
A residential development in Western Australia has been awarded Australia’s first ever Green Star residential rating from the Green Building Council of Australia (GBCA).
“The Summer” has been awarded a 4 Star Green Star – Multi Unit Residential PILOT certified rating, following its participation as a national pilot project. GBCA chief executive Romilly Madew says residential buildings in...
Aust homes seen as gold-like haven
Australian residential property has joined gold as a safe haven for investors disillusioned with equities and terrified other assets will be eaten away as measures to combat the financial crisis prompt a spike in inflation. So says investment firm Whiterock Capital Partners.
Andrew Donnelly, Whiterock’s chief executive, says: “Speculators consider residential property to be boring. It is not...
NT Govt extends Buildstart scheme
The Northern Territory Government has extended its housing grant scheme to the end of 2009.
The Buildstart scheme, which provides $14,000 to investors to build a new dwelling in the Territory, was launched in October 2008 to work alongside the Federal Government’s First Home Owners Grant scheme.
It has received 218 applications to date.
Melbourne vacancies still tight
The vacancy rate in Melbourne’s outer suburbs has increased - but the market is still tight with only 1.8% of rental homes vacant.
The Real Estate Instittue of Victoria says the vacancy rate in the outer suburbs has risen from 0.7% to 1.8% over the past six months.
But the vacancy rate across Melbourne is still low at 1.3% for April, down from 1.4% in both February and March. The outer suburbs...
Approvals rise for 2nd month in a row
Building approvals for new homes rose 3.5% in March, continuing a rising trend of improvements in approvals for new houses and apartments.
It’s the second consecutive month to deliver a rise in building approvals, the first back-to-back monthly gains for 18 months. Close to 10,500 homes were approved in March, well above market forecasts which suggested a rise of 2.8%.
Dwelling approval...
Green council welcomes move to 6-star houses
The Council of Australian Governments’ move to minimum six-star standards for houses has been welcomed by the Green Building Council of Australia.
Chief Executive Romilly Madew says the Green Building Council has advocated changes to the Building Code of Australia for some time and the move to six-star standards is a positive step in the right direction.
“COAG’s commitment to a minimum standard of...
BHP releases plan to expand Olympic Dam mine
Expansion plans for the Olympic Dam mine have been released in an Environmental Impact Statement following five years of study.
Infrastructure will include a desalination plant, a 270km electricity transmission line from Port Augusta, a 105km rail connection to the Adelaide-Darwin rail line, a new airport at Roxby Downs, a wharf at Port Augusta, expansion of Roxby Downs township and a new...
April 2009
9 posts
FHOG may change to offset green housing costs
The Federal Government is considering a revamp of the First Home Owners Grant scheme in the May Budget to offset the cost of a new energy-efficient building code, the Australian Financial Review reports.
It says Prime Minister Kevin Rudd wants the Council of Australian Governments to agree to a national building code which includes strong energy standards. This would require the states to ensure...
Fed Govt increases hardship threshold to $500,000
The Federal Government has announced a plan to allow borrowers to request changes to their loan contracts on the grounds of financial hardship, such as job loss. The measures will apply to loans up to $500,000.
Borrowers can access free legal representation from the Financial Ombudsman Service if their lender refuses to grant hardship assistance.
Currently, only those with loans under $312,000...
Perth market rises in March quarter
The median house price in Perth has risen 2% in the March Quarter to $427,000, its first rise in over a year.
The Real Estate Institute of Western Australia says it appears the market has finally bottomed out, after several years of declining prices. Gosnells grew 3% while Wanneroo in the city’s north-west increased 3.6%.
Overall sales volumes grew 40% in the March Quarter - back to the...
Consumer confidence up 8.3%
Consumer sentiment has grown, boosted by lower interest rates, government incentives and rising sharemarkets. A survey of 1,200 people by the Westpace-Melbourne Institute recorded an 8.3% rise in consumer confidence in April.
It is the first rise in three months and is 6.0% higher than April 2008.
Westpac chief economist Bill Evans says: “This is a surprisingly strong result. Concerns...
Loans grow for 4th succesive month
First-home buyers are claiming a growing proportion of new home loans, thanks to lower interest rates and softer home prices.
First-time buyers accounted for a record 27% of all loan approvals in February, up from 26.5% in January, according to Australian Bureau of Statistics data.
Overall demand for home loans by owner-occupiers grew 0.4% in February, the fourth monthly increase in succession.
Banks raise interest rates on fixed terms
The major banks have raised their interest rates on fixed home loans. The NAB, Westpac and Commonwealth Bank have all lifted their rates for two-year and three-year fixed loans by 0.2 to 0.4 percentage points.
Westpac has increased fixed-rate mortgages for two-year terms by 0.3 percentage points to 5.49%. Three-year mortgages have increased 0.4 percentage points to 5.79%.
Commonwealth Bank has...
Broker offers 2.99% for one year
Mortgage broker Assured Home Loans is offering a fixed interest rate of 2.99% on home loans for the first 12 months.
The rate means mortgage holders with a $250,000 loan over 30 years would save about $400 per month, compared with a standard variable rate, paying around $1050 per month instead of $1450.
After 12 months, the mortgage-holder would pay the Commonwealth Bank’s fixed rate of...
Adelaide vacancies fall to 1.6%
Adelaide’s vacancy rate tightened to 1.61% in March, according to the Real Estate Institute of South Australia. It says price is still the major factor dictating the rental market.
“Anecdotal evidence from property managers suggests that the higher end of the rental market has slowed in recent months with more expensive properties remaining vacant longer,” REISA president Robin Turner says....
Women overpower men in buying decisions
Archicentre, the building advisory service of the Australian Institute of Architects, says its poll in determining which gender has more influence over home buying has revealed women win hands down.
According to the Archicentre website poll of 800 people across Australia, only 8% of purchasing decisions were made by men, 62% were made by women and 30% were a joint decision.
The poll asked the...
March 2009
4 posts
Retail spending rises again
Retail spending rose in January, the 4th consecutive monthly rise. The 0.2% rise (seasonally-adjusted) in January follows a 3.8% increase in December is response to the Federal Government’s first stimulus package which included pre-Christmas cash handouts to families.
It’s yet another example where the economic outcome has been considerably better than forecasts by economists (they...
Low rates make borrowers confident
Australians are more confident about taking out a home loan, thanks for the lowest interest rates in 40 years, according to a poll by Loan Market Group.
The survey found 41% believed there had never been a better time to get a mortgage. Borrowers expect further cuts by the Reserve Bank and want to take advantage of soft real estate prices.
The online poll also found 34% of respondents have kept...