House prices have increased in almost every capital city across Australia over the last quarter, bouncing back from recent price falls.
The national median house price increased 1.5% over the quarter, and 2.7% year-on-year, with strong growth experience in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Hobart.
Perth and Darwin are the only exceptions to the trend, with both suffering sharp price falls of 1.7% and 0.7% respectively.
While median unit prices have also increased, record levels of apartment building have led to an oversupply issue in some capital cities.
Sydney’s median house price rose to $1,021,968 this quarter, increasing by 2.4%, once again breaking the $1 million mark.
Although prices have gone up, they are still below the capital’s record level of $1,032,899 reported in September 2015.
Sydney house prices have increased 1.2% over the past year – the lowest annual increase in 4 years.
Sydney unit prices increased to $669,830, a 0.6% quarterly growth and an annual increase of 0.4 per cent, which is the lowest yearly growth since December 2011.
“Last quarter, Sydney house prices dropped below $1 million, but they have bounced back as lower interest rates boost market confidence,” Domain chief economist Andrew Wilson said.
“The current growth rates are significantly lower than the rises during Sydney’s property boom but, with the revival of investor activity, it’s likely there are more increases coming for the capital.”
Melbourne median house prices have hit a record high of $740,995, an increase of 1.5%.
While the June quarterly increase is marginal, Melbourne prices have increased for twelve consecutive quarters and grown a staggering 7.4% over the past year.
Melbourne unit prices have risen to $450,933, a quarterly growth of 3.5% and an annual increase of 2.7%.
“Melbourne’s growth over the past year is the strongest result in the nation,” Wilson said.
“The new record for median prices reflects the robust market, strengthened by rising buyer and seller confidence.”
The Brisbane median house price has increased to $521,915, over the June quarter, representing a 1.2% increase.
The 4.3% annual increase is a solid result, consistent with Brisbane’s steady rise in recent years.
Median unit prices continued to fall, declining by 1.8% to $370,251, with an annual decline of 3.2%.
Brisbane unit prices are now at the lowest point since the March 2013.
“The upswing in house prices is a promising sign for Brisbane homeowners and investors, however the eighth consecutive quarter of median unit price falls clearly suggests that oversupply and weak demand continue to impact the market,” Wilson said.
Median house prices in Adelaide have hit a record high, rising to $498,927.
House prices increased 0.9% over the June quarter and a solid 4.4% over the year.
Adelaide median unit prices continued to fall, declining by 1.7% to $294,165 while annual price growth in the capital is up by 0.1%.
“Adelaide is a split market, with house prices on the rise and unit prices lagging,” Wilson said.
“The recent surge of new apartment construction has left the local market sluggish, surpassing the demand from buyers.”
Perth median house prices have continued to fall in the June quarter, declining by 1.7% to $568,132.
This is the sixth consecutive quarter of price falls for the capital, with the median price now at the lowest point since March 2013.
Over the past year, Perth house prices have fallen by 5.6% – second only to Darwin for poor market performance.
Perth median unit prices fell to $367,025, down by 2.4% over the quarter and 7.8% per year.
“Like many of the capital cities, Perth is feeling the price shock brought on by a surplus of newly constructed apartment buildings that exceeded buyer demand,” Wilson commented.
“Coupled with steep annual falls in house prices, the capital is a long way away from returning to a healthy market.”
Median house prices in Hobart increased to $345,880, a marginal growth of 0.3% over the quarter.
While Hobart is still clearly the most affordable capital city for buyers, it has noteworthy annual growth, with prices increasing by 2.6% over the past year.
In contrast to most of the nation Hobart median unit prices increased by a robust 2.5% over the quarter, to $276,312.
Meanwhile, Hobart’s unit prices in the capital city have grown by a staggering 10.4% over the past year.
“While prices remain low in Hobart, especially in comparison to a market like Sydney, the capital has had impressive annual growth and continues to thrive.”
“With lower interest rates stimulating investor activity, it’s likely we’ll see prices continue to climb,“ he said.
The median house price in Canberra increased to a record $654,306, over the June quarter, a 3.1 rise, representing the strongest growth of all the capital cities.
Canberra is second only to Melbourne for annual growth, with house prices rising 4.8 per cent over the past year.
Canberra median unit prices fell 1.6 per cent to $399,505, decreasing 4.4 per cent over the past year.
Canberra unit prices are now at their lowest since December 2009 as high levels of apartment construction push supply ahead of demand.
“Canberra was the top market performer this quarter, surpassing the rest of the nation’s capitals with a strong growth in house prices,” Wilson said.
“As market conditions continue to strengthen, it’s likely that Canberra prices will remain on the rise.”
Darwin’s median house price fell for the fourth consecutive quarter, dropping by 0.7% to $613,590.
Darwin median house prices have fallen by 7.7% over the past year, the weakest result for the capital since December 2011, and the sharpest decrease out of all the capital cities.
Median unit prices in Darwin have steadied, with no change over the June quarter and a marginal decrease of 1.5% over the past year.
“Darwin prices have continued to decrease as demand from resource industry workers dwindles in line with the downturn of the mining economy,” Wilson said.
“We have yet to see an impact from the new supply of apartment buildings on the market and, for now, unit prices are steady.”
Original article published at au.finance.yahoo.com by Samantha Menzies 22/7/16
Multimillion-dollar deals fuel record auction day in Brisbane
A record-setting $43 million in real estate sold under the hammer across Brisbane on Saturday in an incredible feat of strength that has revealed the city’s soaring market is showing no signs of slowing.
From the 71 auctions reported 63 transacted to achieve a 89 per cent clearance rate, compared with 65 per cent last week and a meagre 33 per cent this time last year.
It’s also the highest amount fetched in a single day of Saturday auctions in more than six months, with several multimillion-dollar properties sold amid reports of fierce bidding wars.
Although one of the top sales included a sophisticated Queenslander at 92 Elfreda Street in Enoggera, which collected $2.301 million through Place Estate Agents Newmarket, it was a laid-back family suburb on the outskirts of the city that stole the show after hundreds of buyers and onlookers flooded three separate auctions, resulting in milliondollar-plus sales.
Wishart, which is 14 kilometres from the city and has a median house price of just over $800,000, could have been mistaken for an inner-city borough after the three homes collected a combined $3.644 million. Property punters said house prices in the increasingly popular patch have risen by as much as 25 per cent in a year.
Ray White Annerley principal Geoff Sellars sold a dated, low-set brick abode on a 646-square-metre block at 106 Delavan Street to two first-home buyers for $1.067 million on Saturday, and said the price and number of bidders told more than just a tale of the city’s soaring market, but also of a suburb where demand was skyrocketing.
The young buyers were forced to compete against 35 registered bidders for the modest four-bedroom house, forking out $217,000 over the reserve price in front of a crowd of more than 150.
“Wishart has always been fairly popular as well as the Mansfield area, there are people who just buy there to be in the Mansfield High School catchment, but not in the like of what we’re seeing at the moment,” Mr Sellars said.
“There’s an enormous amount of confidence in the market and it becomes a snowball effect. Interest rates are low and people have just prioritised buying property over things like travel and I think the bank of mum of dad is the fifth biggest bank in Australia right now so a large majority of buyers are first home buyers. The confidence over the past 12 months has driven them to that point but a lot of their parents are fronting up money (to help them get their deposit over the line) as well.
“And, in Wishart, I would have thought 106 Delavan would be lucky to be a mid-$700,000s property so there has been a 25 per cent price increase here in some parts.
“At its worst, I think this is the new normal and we have set new average prices for a lot of suburbs. I don’t think we’ll go down from here and there’s definitely the potential for things to strengthen.”
LJ Hooker Sunnybank Hills agents Rob Senic and Kosma Comino sold the other two Wishart homes under the hammer on Saturday, collecting $1.45 million for a contemporary abode at 44 Craig Street and $1.127 million for the slightly rundown four-bedroom house at 22 Cotswold Place.
It was the Cotswold Place property that Mr Comino said attracted an almost rockstar turnout, leading to a 45-minute auction, about 50 bids and a sale price that was $127,000 above the reserve.
“While I knew it would be a good auction because that part always does well, we were thinking it would sell for a maximum of $1,030,000 but then, during the auction, we had a lot of people rock up late and we had a total of 15 registered bidders,” he said.
“From the 15 registered, we had six of them really fighting for it – they were a very mixed group. The bidding opened at $800,000, and it was really rapid then on the fifth bid we hit the reserve.
“A family ultimately won the auction and it’s funny because they had actually missed out on the last two auctions with me in that pocket.”
Mr Comino said first-home buyers and young families looking to upgrade into their second home were making up a large portion of the buyer demographic, with that enticing school catchment attracting half of the buyers, and the suburb’s location being the “X-factor” for the rest.
“You’re also close to the motorway and then you’re close to Westfield Garden City – in fact, if you drive through there now, it’s busier than the city centre. It’s gotten crazy there now.”
Elsewhere, Ray White Carina agent Jose Peralta sold a striking four-bedroom family oasis at 22 Faraday Street in Camp Hill for $1.401 million, and next door in Norman Park, Paula Pearce, of Place Estate Agents Bulimba, sold a modern Queenslander at 64 Morehead Avenue for $1.675 million under the hammer.
In Northgate, Ray White Aspley agent Dwight Colbert transacted the meticulous four-bedroom abode at 26 Mann Avenue for $1.07 million in an auction he said attracted nine registered bidders before fetching $120,000 above the reserve price.
“They were all local buyers and many with young families but in the end it was a retired couple who bought the place as they have six grandchildren. My sellers are upsizing and have bought at Nudgee Beach as they have three children and want some more room,” Mr Colbert said.
“There’s still a lot of desperation for good stock, and it feels like a shortage of listings which I know is helping with competition.”
Article Source: www.domain.com.au
Proposed Queensland rental reforms fall short: advocates
Rental advocates have slammed long-awaited Queensland reforms for dropping a key protection against unfair evictions and a strong assumption in favour of tenants keeping pets, after a significant campaign from property owners and the real estate sector.
The proposed laws, which Housing Minister Leeanne Enoch said aimed to end groundless evictions and establish minimum standards to improve conditions for the 36 per cent of the state’s households that rent, were introduced to Parliament on Friday after a years-long consultation process.
Under the changes, which push stage one of the government’s proposed reforms forward, a landlord will no longer be able to issue a notice to leave without grounds. Tenants who can no longer safely continue with a lease because they are experiencing domestic and family violence will be able to leave with one week’s notice.
Landlords must have reasonable grounds to refuse a tenant’s application to keep a pet, such as the property being unsuitable or to comply with by-laws, but could also place conditions on pet ownership, including that it be kept outside and the property properly cleaned at the end of the lease. The proposed laws also state that fair wear and tear does not include pet damage.
But tenant advocacy group Better Renting said the government needed to explain why it had moved away from a recommendation of its own review to bar landlords ending a lease at the end of a fixed-term contract unless they were planning to sell, undertake major renovations, or move in themselves.
“Queensland Labor must explain why they have departed from this recommendation and how people who rent their homes can possibly feel secure when, 10 months into a tenancy, they can be told to get out,” executive director Joel Dignam said.
With more people renting, and doing so for longer terms, tenants in such situations would still be in a weak position to oppose any refusal of a pet application, Mr Dignam said.
“The proposed changes fall short. People who rent will still be afraid of an unjustified notice to leave that will mean giving up their home and struggling to find a new place to live in a competitive rental market.”
Tenants Queensland chief executive Penny Carr welcomed the introduction of minimum standards and moves to make rentals more pet-friendly, but said the changes would undermine the current tenancy laws.
“We advocated new grounds to end tenancies, but only with the view to removing the ability to end tenancies without grounds,” Ms Carr said. “The government have done the former but not the latter.”
The Queenslanders with Disability Network raised concerns that a removed proposal allowing renters to make minor modifications would affect the community, while the Queensland Council of Social Service criticised the bill for not including air and ventilation requirements in the minimum standards.
Greens South Brisbane MP Amy MacMahon, who introduced her own private member’s bill this month seeking to also cap rent increases to once every two years by no more than CPI and ban rental bidding, said the government had sided with property owners and the real estate lobby.
Ms Enoch said the Greens’ bill would have made it less likely for an owner to rent our their property, and what was needed was a “strong, balanced” approach to encourage market growth and stability while also protecting the rights of both tenants and owners.
Rental vacancy rates remain low across the state, with the Real Estate Institute of Queensland recently reporting the tightest vacancies in Anstead (0.5 per cent), Birkdale (0.3 per cent) and Capalaba (0.2 per cent).
Institute chief executive Antonia Mercorella praised what she described as a fair outcome for tenancy laws in need of modernisation.
The government first flagged the reforms in 2018 with a consultation process that drew more than 135,000 responses. A second stage was expected to look at inspections, rental bonds and longer-term leases.
Article Source: www.brisbanetimes.com.au
Sunshine Beach trophy home sets $34 million Queensland house price record
A Sunshine Coast mansion has obliterated the Queensland property price record after it sold for $34 million in a deal shrouded in secrecy.
The colossal coastal home, on a 2015-square-metre block at 17 Webb Road, Sunshine Beach, is the first house outside the Gold Coast or Brisbane to claim the state’s highest sale title, knocking two palatial palaces in Mermaid Beach off the throne.
According to Domain and Pricefinder data, the previous records were held by 2 Heron Avenue – which sold in February this year for $25 million – and the nearby 45-51 Albatross Avenue, which also fetched $25 million in 2016.
The record has also blown Brisbane’s highest house sale of $18.48 million out of the water, which was achieved for 1 Leopold Street, Kangaroo Point, in March 2017.
Mere metres from the sand on a battle-axe block and featuring crisp white exteriors ensconced in lush greenery, the sprawling Sunshine Beach estate, dubbed “Webb House”, has set a precedent for the suburb’s prestige sector. Here, large sales have become par for the course.
In the sun-drenched pocket – right next to Noosa – median house prices have shot up by 95 per cent over the past five years to $1,802,500, according to Domain’s latest House Price Report.
The report also revealed the Sunshine Coast was one of the state’s top property performers over the past year.
Although the Sunshine Coast and its top-performing suburbs have long attracted cashed-up buyers (including former tennis star Pat Rafter, who sold his Sunshine Beach mansion for $17 million last year) property experts have attributed the Sunshine Coast’s booming prestige market to record-high levels of interstate migration fuelled by the COVID pandemic.
The Webb Street home is one of a handful of palaces dotted along the sandy strip and is a picture of sophistication after Peter Conley, of PCA Architects, and Damien Davidson Builders performed an extreme makeover that the owners described in a testimonial on the building company website as their most ambitious.
The owners, Margie and Murray Charlton, reportedly had the property renovated from a holiday house that had just four bedrooms.
“Webb House” is believed to have been sold by Noosa prestige property specialist Tom Offermann, of Tom Offermann Real Estate, who declined to comment on any aspect of the sale.
Domain records reveal the land value for 17 Webb Road was estimated to be $4.8 million in 2019.
The mansion is understood to be Mr Offermann’s second record-setting transaction in just a few years, after he collected a then unprecedented $22 million for the nearby 21-23 Webb Road in 2018.
Mr Offermann also sold the nearby 2 Belmore Terrace, Sunshine Beach, for $14 million at the end of 2018, which was rumoured to have transacted again for $22 million.
Article Source: www.domain.com.au
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