The CBA is forecasting a surge in house prices over the next two years of up to 16 per cent, while unit price-growth will be more muted at 9 per cent.
According to the CBA, lending rates have lifted sharply, signalling a housing market on the “cusp of a boom”.
“The increase in new lending is now feeding into higher prices for bricks and mortar,” CBA economist Gareth Aird said.
“The negative impact that Covid-19 had on Australian property prices turned out to be much more muted than almost any forecaster expected, us included.
“We were earlier than most, however, to recognise this and revised our call in September 2020 to look for a smaller peak-to-trough fall and a decent lift in prices over 2021.
“But even then, the rapid growth in new lending over the second half of 2020 was stronger than we anticipated.”
Capital city forecasts
In its most recent economics issues report, released today, economists at the CBA reported the boom was off the back of record low interest rates and a v-shaped labour market recovery.
Aird said record low borrowing rates remained below rental yields across most markets and it meant property markets “would need to find equilibrium” in the form of dwelling price rises.
“A critical assumption underpinning our forecasts is the cash rate remaining at its record low of 0.1 per cent, which is in line with RBA forward guidance,” Aird said.
“We do, however, factor in a modest increase in fixed rate mortgages, which will rise if the RBA removes or raises its target yield on the three-year Australian Government bond, as we expect in the second half of 2021.”
The CBA is reporting positive momentum is building within the property market and “as the market firms, would-be buyers are more confident to purchase and this brings other buyers into the market”.
The news is less positive for unit-owners. CBA is forecasting a disparity in price growth between houses and apartments.
“We forecast national house prices to rise by 16 per cent over the next two years and unit prices to rise by 9 per cent,” Aird said.
Article Source: theurbandeveloper.com
Why owner-occupiers are loving the Chevron Island apartments at Allure
Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space
Offering a unique blend of inner-city convenience and coastal bliss, it is no surprise that owner-occupiers are acting quickly to secure an apartment at Allure.
The latest development by Macquarie York, Allure is “inherently opulent and meticulously crafted”, a resort-style development in the heart of the Chevron Island precinct.
Delivering 95 two, three and four-bedroom apartments, the project boasts generous floorplans and a sleek contemporary design by BDA Architects.
Perfectly proportioned, generous living spaces boast a natural palette, providing a sense of ease and opportunity for you to bring your own sense of style to the space.
“Whether you’re entertaining or enjoying some private reflection time, you will always feel right at home”, the project marketing reads.
Among other design details are the subtle natural timbers and stone that celebrate the beauty of organic materials and connect the interiors with the landscaping outside.
Contemporary bathrooms feature a semi-frameless shower, large format tiling and intelligent storage.
However, it’s the wealth of facilities designed to enhance quality of life that are pulling in buyers to the Gold Coast development.
The rooftop, the pinnacle of Allure, delivers panoramic views from north to south, while residents can enjoy an exclusive lounge, barbeque and dining area, infinity pool as well as several viewing decks to take in the impressive vistas.
A coastal aura and resort experience is felt as soon as you walk through the prominent lobby doors, with a double-storey atrium is crafted to draw natural light while bespoke lighting add a touch of elegance.
Chevron Island is a location that allows Allure to feel both secluded and connected.
“Everything you need to lead an exceptional life is at your fingertips, yet the hustle and bustle of modern life is kept at bay”, the developers said.
The development is expected to reach completion in mid-2022 but discerning buyers should act fast to secure one of these exclusive residences.
Article Source: www.urban.com.au
Investing in property: The art of picking the right drivers for price growth
It’s all a question of demand and supply, and nowhere is that more critical than when planning a residential property investment.
The art of picking the right drivers for price growth is a tricky one.
You might have found the perfect property in a popular area with lots of jobs, a healthy rate of population migration and excellent infrastructure but if there are plans underway for 1000 new homes in the next year … suddenly, it’s no longer such a good prospect.
“The basic equation that underlines everything is a low level of supply and a high level of demand,” says Kate Hill, founder and director of investment property buyers’ agency Adviseable.
“And you want that imbalance to be sustained, not just short-term in a volatile mining market, for instance, or for the demand to be extrinsic, like the quick blip in Brisbane when the Olympics come but then everyone moves on. It has to be good, long-term demand to drive capital growth.”
You also need to judge the demand for the type of property too.
There’s no point in investing in a two-bedroom apartment if everyone there is looking for four-bedroom houses.
Don’t be too entranced, either, by the promise of good capital growth in a spot where rents are low and there might be a high vacancy rate and too many days on market for property sales.
Uwe Jacobs, the founding director of Property Friends and author of the book, The 7 Secrets of Highly Successful Property Investors, says being enticed by the lure of negative gearing schemes is a common error of people trying to build a property portfolio.
“The main driver for investment is the balance between the short-term income of rental income and the long-term prize of capital growth,” he says.
“That rental money is what’s going to sustain you during periods of low, or no, capital growth so your investment doesn’t eat you out of house and home.
“The vast majority of people invest for financial independence, choices in retirement or leaving a legacy to children, so highly negatively geared properties aren’t the way to go. You need a more risk-averse strategy.”
That means not skipping essential research, he advises.
All factors like vacancy rates, days on market, median prices, growth forecasts, any upcoming property developments, and whether there’s an influx of people – or they’re leaving – are all critical to calculations.
“And you need to visit the area to check that it physically matches the research,” Jacobs says.
More than almost anything, the area where you’re considering investing should also be liveable and desirable.
“It should have amenity close by,” says Lachlan Vidler, director of the Atlas Property Group.
“That means transport options for people to get to work easily, shops, cafes, restaurants and parks, so there’s plenty to do when family or friends visit. Don’t be too caught up in promises of infrastructure to come, either. How many promises of infrastructure have there been which takes decades to arrive – if it ever, eventually, does?”
Article Source: www.domain.com.au
What to ask agents when being taken through a display suite online
Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections, useful both during lockdown and for those buying out of state or internationally
Australians have been staying at home on and off during the intermittent lockdowns and for homebuyers, this means a delay, sometime indefinitely, in purchasing property.
However, data in both the first Melbourne lockdown and beyond shows that online visits and enquiries of property listings have surged by over 50%.
Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections. This is useful both during lockdown and for properties available for purchase off-the-plan, or available across state or national borders when in-person inspection may not be possible.
For a more in-depth guide on off-the-plan buying check out our expert guide.
1. What’s the cost per square metre for each floorplan configuration? (make a note of this and compare to other properties you virtually view)
This is vital information to compare the value of the property to others in the area as well as the suburb/region you are looking to buy in. It is important to make sure you are buying a property that suits your needs and has room to grow, one marker of such potential is if the $/psqm is below median for the area, however it isn’t the be all end all
2. When is construction slated to start/be completed?
Construction projections are important information as it will have an effect on how long you may rent or choose to settle on your current property. Ensure the builder/construction firm is reliable and has a good reputation to reduce the likelihood of delay.
Keep in mind that some delays may occur if a coronavirus outbreak occurs.
3. Which items within the display are included and which are optional upgrades?
Straightforward enough, make sure you don’t get blindsided and chuck out your old washer/dryer just because the display suite has one, double check with the agent to see what is supplied by the developer as some offer white-goods packages and optional deals.
4. What customisation option do you have available?
Depending on the design firm and developer, some firms offer a higher degree of customisation, this tends to increase linearly with price as the more expensive the property is, the more customisable it generally is. Either way you should ask as many developments offer at minimum a choice in colour pallete and fittings
5. What’s the ceiling height? (compare this to your own ceilings at home)
While this many not mean as much to someone who is 150 cm tall, for prospective basketball players… and everyone else, it’s worth knowing ceiling height as this can impact whether the home feels claustrophobic or spacious and airy regardless of your personal height.
6. Which aspect does the particular apartment I’m considering buying face? (take note of where the sun is throughout the day in your own home)
This is important for natural light purposes, as well as potential views as some apartments will offer a better aspect than others.
7. Who built the display suite and will they be constructing the actual apartments/townhomes?
A vital point of note is the builder, don’t misunderstand something because of an unrealistic display suite.
8. If taking a virtual tour, ask the agent to zoom in on details so you can see the build quality
If the builder doesn’t put their best foot forward with the display suite, it is worth asking the agent about it and whether other properties you have looked at demonstrate better build quality or detailing.
Article Source: www.urban.com.au
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