NSW real estate review
After taking a breather after its record run six-year run, Sydney’s Inner West market is starting to pick up again, according to Paul Pettenon, Principal of Raine & Horne Concord.
Paul said that demand for quality, well-located property is robust, with Raine & Horne Concord securing the sales of two substantial family homes at 312 Concord Road, Concord for $1,860,000 and 115 Davidson Avenue, Concord for $1,905,000.
Another significant transaction in March was the sale of a classic 1920s Californian Bungalow at 14 Queen Street, Concord West for $1,770,000. With listings in ample supply, buyers can afford to be more selective, noted Paul. “However, many vendors are responding appropriately by establishing realistic asking prices for their properties.”
Property prices within a two kilometre radius of the new north-south rail link are drawing plenty of investor interest, according to a media report, with prices likely to increase by 15% over the next few years. The rail link is to be rolled out ahead of the planned airport at Badgerys Creek, scheduled for completion in 2026. The confirmed first stage, set to connect St Marys station to Bringelly has driven an immediate upswing in local home prices. Raine and Horne St Marys Sales Manager Peter Diamantidis told news.com.au that investors had streamed into the area since the announcement after a lengthy absence from the market. “If we were to have 10 people at an inspection, seven or eight would be investors. In November seven or eight were owner occupiers,” Peter said.
Meanwhile, former Australian cricketer Michael Clarke joined the chorus of support for Central Coast real estate, buying into and personally endorsing one of the region’s newest boutique developments, Viciniti, in Point Frederick.
Attending a VIP launch in Gosford before Easter, the ex-Australian captain said it was clear to him there was no doubt that Gosford was a growing area, and the investment was a “great opportunity.”
Headed by REINSW vice president and Raine and Horne Terrigal & Avoca Beach director Brett Hunter, the Viciniti project has an expected 14-month turnaround, with the apartments ranging in price from $420,000- $1.4 million.
Queensland real estate review
The beachfront markets of the Gold and Sunshine Coast, and Noosa, finished 2017 with the strongest growth in the state, significantly outperforming Brisbane.
The Gold Coast delivered a gold medal performance, with the annual median house price growing by 7.7%, to end the year on $615,000, according to a report from the Real Estate Institute of Queensland (REIQ). The Sunshine Coast median house price grew 6.4% to end the year at $569,000 and Noosa grew 6.2% to deliver an annual median house price of $650,000, finishing the year just $15,000 below Brisbane LGA median house price.
REIQ CEO Antonia Mercorella said Noosa was an area where demand was placing strong pressure on limited supply levels. “This is an area that could do with more supply, but clearly the topography makes that challenging.
“Noosa’s world-class beaches, stunning natural bushland settings and wonderful warm community are factors that are fanning the flames of buyer demand. It is inevitable that this will push up prices,” she said.
The Gold Coast market has benefited from a strong local economy, a direct result of the infrastructure investment ahead of the Commonwealth Games in April. Upward pressure on prices has seen some suburbs demonstrate explosive median house and median unit price growth. Mermaid Beach is the Gold Coast’s most expensive suburb for houses, with growth of 8.9% delivering a median house price of $1.56 million.\
Western Australia real estate review
After real estate sales in Perth dropped off due to the Labor Day long weekend, activity had rebounded by the middle of March, according to data from the Real Estate Institute of Western Australia. Craig Abbott, General Manager, WA, Raine & Horne said, residential markets in Perth are still bouncing along the bottom of the cycle, although there are pockets of positivity. “These pockets include western suburbs such as Subiaco, Clermont and Dalkeith and this activity suggests the overall Perth market will start to collect more steam in 2018.”
Meanwhile, the NorthLink WA transport link between Morley and Muchea which is driving commercial sales, will have long-term benefits for residential markets, noted Craig. The $1.02 billion NorthLink WA will facilitate improved traffic movements between commercial and industrial areas such as Malaga, Kewdale and the Perth Airport and the Perth CBD. Craig explains, “NorthLink is a massive project and is creating more jobs in infrastructure which is driving up consumer confidence.
“Buoyant consumers spend money, which is fantastic for retail trade and residential real estate activity too.”
South Australia real estate review
Following the release of the Valuer – General’s median house prices for the December 2017 quarter, the regional housing market recorded a median house price of $260,000 according to the Real Estate Institute of South Australia.
Although slightly down from the previous quarter and the same period last year, the result is still a strong result. Importantly, sales volumes were up more than 10% from the previous quarter and 15% from the same quarter last year.
REISA President, Mr Alex Ouwens said: “It is great to see that sales volumes are significantly up in regional South Australia during the last quarter of 2017. The regional market is a resilient market and I am delighted to see it doing well.”
Suburbs which have seen the largest growth over a 12-month period are Renmark, Berri and Port Lincoln with increases of 41.16%, 11.76% and 10.80% respectively.
Top selling suburbs in terms of recorded sales over the December quarter were the perennial Top 3 – Mount Gambier, Victor Harbor and Murray Bridge.
Victoria real estate review
The Melbourne housing market continues to outperform Sydney with annual growth of 6.9%. In comparison, Sydney values fell by 0.5% in the 12 months to the end of February, according to CoreLogic.
Randolph Clements, Managing Director of Raine & Horne Victoria, commented that some experts were focused on a recent statistic showing that the Melbourne market had fallen by 0.1% in February. “This is an infinitesimally small drop and is spread across the entire Melbourne market,” said Randolph. “It does not consider the many, many markets in Melbourne that are still enjoying decent capital growth.
“To illustrate, we sold a knockdown property in Mount Martha for over $900,000. Local agents didn’t expect it to sell for $750,000, but the final sale beat these expectations by $150,000.”
Underpinning the Melbourne market is the massive infrastructure investments in transport. This includes the Metro Rail Tunnel, a five-year project worth $11 billion and the $6.7 billion four-year Westgate Tunnel project. Randolph noted, “Since negotiating the ills of the “recession we had to have” in the 1990s, we’ve had 17 years of growth in Melbourne.
“Even if interest rates go up by 100 basis points, they’ll still be low in comparison to other times in our economic history. It won’t make much difference, and people will still want to buy quality, well-located property in Melbourne.”
Tasmania real estate review
The value of Battery Point homes has grown by $62,500 annually for the past 10 years virtually doubling the value of Tasmania’s most exclusive and expensive suburb, according to new data from realestate.com.au.
The report revealed that homeowners or investors who bought property in Battery Point, Hobart, North Hobart, Dynnyrne and Sandy Bay would today be sitting on gold mines. In 2008 Battery Point’s median price was $650,000 but by mid-February this year, CoreLogic figures show the coveted city suburb’s median was $1.275 million.
In Hobart the median grew from $392,500 in 2008 to $825,000 while North Hobart homes more than doubled in value from $310,000 to $670,625.
Northern Territory real estate review
With the Darwin property market now officially at the bottom of the cycle, Raine & Horne Darwin is responding by auctioning 12 properties in a single night on Wednesday 21 March.
A highlight of the first-ever Raine & Horne Darwin Clearance Auction was the sale of a striking three-bedroom apartment with stunning views of the marina at Cullens Bay. “Despite Darwin’s real estate values beginning to improve slowly, there is still a surplus of properties on the market. As such, we have decided to hold a clearance auction that puts motivated sellers and buyers together to help get the market moving,” said Glenn Grantham, General Manager, Raine & Horne Darwin.
“Over the past three weeks, we have conducted a high impact marketing campaign that includes collaborating with the major property portals such as realestate.com.au and Domain, as well as social media, to promote the event.
“As a result, we have had fielded strong enquiries from local owner-occupiers and investors, as well as some requests for contracts from interstate buyers who have been attracted by the quality and affordability of the stock that is set to go under the hammer.”
An auction is becoming a more accepted method of sale in Darwin, according to Glenn. “Selling under the hammer is the best way to flush interested buyers out of the woodwork,” he said. “It puts deadlines on buyers and sellers, and it gets both a fair market price.”