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Falling Housing Approvals Add Pressure to Frenzied Market

A significant dip in housing approvals has added fuel to the already hot property market, despite a lockdown softening.

Australian Bureau of Statistics data shows the number of private-sector houses approved dropped 11.8 per cent in June, following the downward trajectory since the end of the Federal government’s HomeBuilder stimulus package.

Across both houses and units the number of dwellings approved fell 6.7 per cent, compared to a 7.6 per cent decrease in May.

BIS Oxford Economics economist Maree Kilroy said house approval figures had dipped from the record level achieved in the past 12 months.

“As expected, house approvals drove the fall, down 12 per cent month-on-month,” Kilroy said.

“However, the 2020-21 financial year saw houses reach a new record level of 147,624 approvals.

“Attached dwellings gained 4 per cent with apartment construction looking to have passed the trough.”

Kilroy said the fading effect of the HomeBuilder program meant house approvals and new construction loans would continue to ease, while labour and material shortages would bite into delivery times for new homes.

Dwellings approved by state or territory

Region Houses approved Monthly % change Units Monthly % change
NSW 2482 -14.5 5169 -12.7
VIC 4307 -2.3 6785 12.8
QLD 2015 -25.2 2996 -18.4
SA 1234 14.8 1414 8.6
WA 1595 -21.1 1847 -30.5
TAS n/a n/a 342 -14.9
National 12,037 -11.8 18,911 -6.7

^Source: Australian Bureau of Statistics

Queensland and Western Australia experienced the biggest decline in both house and unit approvals.

In Western Australia overall dwellings approvals dropped by 30.5 per cent, followed by Queensland at 18.4 per cent and Tasmania at 14.9 per cent.

In the 2020-21 financial year total dwelling approvals nationally were 27.3 per cent higher than in 2019-20 financial year, driven by a 42.8 per cent surge in private sector house approvals.

Dwelling approvals increased more than 88 per cent in Western Australia over the financial year, while in Queensland it was up 36.7 per cent and Tasmania experienced a 33.9 per cent increase.

Dwellings approvals by building type 

housing approvals

^ Source: Australian Bureau of Statistics 

Westpac senior economist Matthew Hassan said while sales were down about 10 per cent in Sydney, due to lockdowns, but he said “lockdowns and reopening rebounds” in Sydney and Melbourne had negated each other last month.

“Initial estimates show turnover up slightly in the July month but still showing solid momentum on a three-month basis, up 6.6 per cent for the quarter and 70 per cent for the year,” Hassan said.

“Sales continue to outstrip new listings by a wide margin … Australian dwelling prices posted another solid gain in July but with clearer signs of moderation from the red-hot pace through the first half of the year.

“Prices are up 15.1 per cent over the year … the three month annualised pace of gains has moderated to 21 per cent from a cracking 40 per cent peak in April.”

 

Article Source: www.theurbandeveloper.com

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Brisbane

Competition Heating Up for Rental Properties

Rental Properties

The residential rental market just got tighter with the number of new listings reaching its lowest point since before the pandemic.

The availability of rental properties dropped -3.9 per cent in August, according to the Proptrack rental listing report from REA Group.

Rental volumes dropped the fastest in Melbourne at -16.9 per cent and Canberra at -29.9 per cent as lockdowns hampered the market.

Meanwhile in Sydney, “green shoots” were starting to appear with a 6.7 per cent increase in new rental properties as one-on-one inspections were introduced and activity picked up.

Change in rental listings

Location Monthly new listings Annual Change Total listings Annual change
Sydney 6.7% -23.4% -0.7% -24.8%
Melbourne -16.9% 36.4% -6.7% 14.4%
Brisbane -3.7% -6.4% -0.9% -18.3%
Adelaide 5.4% -3.7% 3.0% -11.2%
Hobart -9.8% 8.7% -3.2% 3.4%
Darwin -1.1% 5.7% 7.9% -20.4%
Canberra -29.9% -21.3% -18.3% -16.7%
Capitals -4.7% -5.0% -3.3% -11.0%
Regional -1.3% -3.5% -2.0% -15.8%
Total -3.9% -4.6% -3.1% -11.9%

Source: REA Group from realestate.com.au August 2021 data

REA Group director of economic research Cameron Kusher said in the report that the fall brought national rental listings to their lowest point since December 2019.

“The rental market has become even more competitive with the availability of rentals close to an all-time low,” Kusher said.

“The crunch in rental supply is being felt regionally, too. Total rental listings were at an historic low at the end of August in regional NSW, regional WA and regional Tasmania.

“Regional Victoria and regional Tasmania were the only regions in which total listings recorded a year-on-year increase.”

Nationally the vacancy rate remained at a multi-year low of 1.6 per cent in August, according to Domain.

This report showed in Brisbane, Hobart, Adelaide and Darwin landlords could use the tight levels to increase rent on new listings.

However in Melbourne, vacancy rates were continuing to rise, hitting 3.8 per cent.

Sydney remained relatively steady, with levels at 2.6 per cent since June.

While the rental market remains competitive, soaring property prices have pushed rental yields to all time lows.

 

Article Source: www.theurbandeveloper.com

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Gold Coast

Display Tour: Peninsula Collection by ASF Group on Hope Island, Queensland

Whether you’re a fan of golf, enjoy boating, or dream of spending weekends relaxing by a pool, then you’ll love the property we have to show you today.

PENINSULA COLLECTION AT A GLANCE

Developer: ASF Group

Architect: Archidiom

Address: 52 Harbourview Drive, Hope Island QLD 4212

Number of residences: 63

Peninsula Collection

Peninsula Collection is the final release within the Hope Island Resort, following the sell-out-success of Peninsula Terraces.

Securing a home within this prestigious gated community isn’t an opportunity that comes around often, which is why we are excited to share this property with you.

While the display suite may be small, the resort is anything but – with 5-star amenities already built and ready for you to enjoy.

Swap your rush-hour commute to a cruise on your very own golf buggy, as you navigate from the pool to the tennis courts, or around the three championship golf courses, the island has to offer.

Another aspect we love about Peninsula Collection is the convenience of its location.

You’re just a stone’s throw to Hope Island Shopping Centre as well as the marina – which offers boaters and yachters bridge-free and open-ocean access.

Plus, you’ve also got the added comfort of an in-built security button and 24-hour medically-trained security on site.

You’d think homes like these must come at a premium; however since they are community strata-titled apartments, you get to enjoy a spacious, brand new home in a great location with world-class amenities for a fraction of the price.

Not to mention, all Peninsula Collection residences are FIRB exempt – allowing you to tap into the global market for potential capital gains.

A three-bedroom home with two bathrooms and a parking space starts at just $565,000, one of the lowest price points on the Gold Coast market.

 

Article Source: www.urban.com.au

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Residential

Top Locations for First Home Buyers Named

Home Buyers

First home buyers looking for a first rung on the property ladder are honing in on locations near public transport with affordability in mind.

In most parts of the country the most popular location was clear, however in NSW and Victoria buyers were scrambling to get in wherever they could, according to broker platform Hashching.

Their analysis found buyers were looking for the “sweet spot” of good commuting options to capital cities, affordable housing, and nearby recreational areas, which was reflected in the high number of transactions from independent mortgage brokers.

Top locations for first home buyers

State Postcode Percentage of FHB
Qld Toowoomba 20%
NSW Pemulwuy 2%
Vic Deven Meadows, Roxburgh Park 2% each
ACT Dunlop 11%
SA Port Lincoln 8%
WA Bunbury 6%
Tasmania Lenah Valley 12%

^Source: Hashching

Hasching chief executive Arun Maharaj said that in NSW and Victoria the market had failed to create appealing centres of entry-level property, pushing the cohort to other states.

“This results in buyers choosing to save more and compete with buyers higher up the ladder rather than relocate, or to choose to purchase their first home elsewhere,” Maharaj said.

“From the data, it looks like Hobart is the prime beneficiary of this trend, which saw high first home buyer activity in centralised locations, with Adelaide’s southern postcodes also seeing significant activity, which suggests first home buyers are finding refuge there from other states.”

The Australian Bureau of Statistics shows a third of people looking at the residential property market were first home buyers.

Since the end of HomeBuilder the number of new loan commitments for this group dropped -6.8 per cent in July following a -7.8 per cent drop the previous month.

The drop in new loan commitments was felt across the broader owner-occupier market, which fell -6.1 per cent for newly erected homes and -4.7 to build new homes.

 

Article Source: www.theurbandeveloper.com

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