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Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (1)

The number of new listings added to the national housing market through November was up 56% from the depths of winter, however compared with previous spring periods, newly advertised stock hasn’t been this low since CoreLogic began tracking listings in 2007.  With fresh listings at a lower than normal level and buyer demand rising, the total number of advertised properties available for sale is also tracking at historic lows, down 12.4% nationally compared with last year and the lowest reading for this time of the year since 2009.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (10)

With buyers taking advantage of the lowest mortgage rates since at least the 1950’s along with an improvement in credit availability/borrowing capacity, market activity is rising.  With such a small pool of stock available for sale, competition amongst buyers is increasing, adding a sense of urgency to the market which is another factor supporting price growth at the moment.

Based on a count of new and total listings over the first four weeks of November, both new listings being added to the market and total listing numbers were down compared with the same period a year ago across every capital city.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (9)

The largest drop in new listings numbers can be seen in Darwin, down almost 40% compared with last year, while Hobart (-23.3%) and Perth (-23.0%) have also recorded a substantial drop relative to last year.

Total listings numbers were the lowest relative to a year ago in Sydney (-23.1%), Perth (-16.6%) and Melbourne (-15.7%).

The low number of spring listings likely reflects a combination of factors.  In markets where housing conditions have been weak, like Darwin and Perth, a lack of vendor confidence is understandable.  Selling conditions have been tough in these markets since 2014 and prospective home sellers are likely wary of the challenging selling conditions, where homes are taking a long time to sell, discounting rates are high and properties are often selling for a lower amount than what they were purchased for.

In stronger markets like Sydney and Melbourne, the low number of listings being added to the market is more surprising.  One reason could be related to overall consumer confidence remaining low.  Selling a home, as well as buying a home, is a high commitment decision that is harder to make when confidence in the overall economy and future household finances is low. Another factor relates to the speed of the market recovery.  It was only five months ago that housing values were still broadly falling. Preparing a property for sale involves a number of processes that take some time, including making the decision to sell, finding an agent, preparing the home for sale and commencing a marketing campaign.

Considering this, if selling conditions remain strong through early summer, we could see the market being tested with a larger number of listings through early December or the first quarter of next year.

Sydney  
There were 6,879 new listings added to the market over the first four weeks of November, 19% below the decade average and 3.2% lower than a year ago. This was the lowest count of new listings for this time of the year since CoreLogic listing records commence in 2007.  Total listings were running at 24,360 across Sydney over the same period, 23% lower than a year ago and almost 13% lower than the decade average.  The short supply levels are adding some urgency to local market conditions as active buyers compete across a relatively small pool of available stock for sale.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (8)

Melbourne  
There were 8,603 newly advertised properties added to the Melbourne housing market over the first four weeks of November; 7.4% lower than a year ago and 7.7% below the decade average.  New listing numbers haven’t been this low since 2011 when the market was still moving through a downturn.  Total listing numbers across Melbourne (32,862) were almost 16% lower than a year ago and 0.6% below the decade average.   When the market was moving through peak growth conditions in 2015, total advertised stock levels were only slightly lower than their current level.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (7)

Brisbane  
4,039 fresh listings were added to the Brisbane market over the first four weeks of November, tracking almost 14% lower than a year ago and 11% below the decade average.  This was the lowest number of new listings added to the market for this time of the year since 2012.  Total listing numbers remain relatively low across Brisbane.  There were 20,704 properties advertised for sale across the market over the past four weeks, which was 8.1% lower than a year ago and 3.7% below the decade average.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (6)

Adelaide  
The past four weeks saw 2,362 fresh listings added to the Adelaide housing market, down 10.3% compared with the same period a year ago and 6.2% below the decade average.  This was the lowest number of new listings for this time of the year across Adelaide since CoreLogic listing records commenced in 2007.  The past four weeks saw 8,878 total listings available for sale across Adelaide which was 4.0% lower than a year ago and 3.1% below the decade average.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (5)

Perth  
Only 3,392 newly listed properties were added to the Perth market over the past four weeks, down 23% from last year and 23.1% below the decade average.  Fresh stock being added to market is well below what might be described as normal levels, with the November 2019 reading the lowest since CoreLogic listing records commenced in 2007.  Total listing numbers, at 18,312 over the first four weeks of November, were almost 17% lower than a year ago and tracking 4.2% below the decade average.  Total listings haven’t been this low, for this time of the year, since 2013, just before the market peaked across Perth.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (4)

Hobart 
Only 396 new listings were added to the Hobart housing market over the past four weeks, 23% lower than a year ago and 24% below the decade average.  The number of fresh listings being added to the market hasn’t been this low, for this time of the year, since CoreLogic started tracking listings in Tasmania in 2009.  Similarly, total advertised stock levels are also tracking at seasonal lows.  The past four weeks saw 1,087 residential properties for sale across Hobart, which was 15.4% lower than a year ago, tracking at roughly 50% of the decade average. Such low stock levels are likely to add further upwards price pressures to the Hobart market as buyers compete for such a small pool of properties available for sale.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (3)

Darwin  
Only 121 new property listings were added to the Darwin market over the past four weeks; 39% lower than a year ago and 43% below the decade average.  Since CoreLogic commenced tracking listing numbers across the Northern Territory in 2007, fresh stock levels have never been this low for this time of the year.  Total listing numbers were tracking at 1,324 over the past four weeks, which was almost 10% lower than a year ago, but 2.6% above the decade average.  Total advertised stock levels are generally elevated across Darwin, despite the low number of new listings, reflecting weak buyer demand and ongoing challenging selling conditions.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (2)

Canberra  
761 fresh listings were added to the Canberra housing market over the past four weeks, which was almost 17% lower than the number added at the same time last year, but 2.2% higher than the decade average.  This was the lowest number of new listings added to the market, for this time of the year, since 2014.  Total listing numbers were tracking at 2,430 across Canberra over the past four weeks, down almost 9% from last year but 4.6% above the decade average for the city.  Higher than normal stock levels across the city suggest buyers probably aren’t facing a great deal of urgency in this market and can potentially drive a harder bargain at the negotiation table.

Fewer Homes For Sale Through Spring Despite Stronger Selling Conditions (1)

 

 

 

Source: www.corelogic.com.au

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Brisbane

Rio’s New Digs Hit High Point

Rio’s New Digs Hit High Point

Hutchinson Builders has topped out the “first-of-its-kind” full merging of two separate commercial buildings in Brisbane’s $700 million Midtown Centre.

Mining giant Rio Tinto signed a 10-year lease deal in 2019 on the 27-storey, Fender Katsalidis-designed tower, developed by AM Brisbane CBD Investment, a joint venture between wealth manager Ashe Morgan and developer David Mann’s DMann Corporation.

The project involves the $175 million connection and refurbishment of the former Health and Forestry Buildings located at 155 Charlotte Street and 150 Mary Street—acquired in 2017 for $66 million—into a cross-block hub comprising a commercial tower, with a public laneway connecting both streets.

Rather than using the conventional method of joining the existing 20-storey buildings by a skybridge, the buildings have been merged from top to bottom using a base podium and exterior, to provide large campus-style 2,500sq m floor plates.

The infill is locked in by a new level 20 slab supporting an additional six levels above, to form the single 26-storey tower currently being constructed by Hutchinson Builders—who, like other “essential services” have continued work while adapting to Covid-19 social distancing measures.

Fender Katsalidis director Mark Curzon said the infill completion is a huge accomplishment in terms of commercial design outcomes, adaptive reuse and sustainability in Australia.

“Through good design, we have given new life to the buildings in a somewhat unconventional but highly innovative and technically considered manner.

“We’re leading the way for more environmentally-friendly adaptive reuse while meeting commercial objectives in creating large floorplates that would otherwise be unattainable in this CBD location,” Curzon said.

Compared with a demolish and rebuild scenario, Midtown Centre’s infill achieves a claimed 231 per cent cumulative impact reduction across all environmental indicators, including a 37 per cent carbon dioxide reduction compared to a new build.

Rio’s New Digs Hit High Point (2)

Curzon said that although the successful merging of the structures in the Midtown development rests partly on the fact that the two buildings’ original designs mirror each other, the technique was transferable.

“The infill has afforded significant environmental savings, adding to the viability of this technique and its potential to be implemented across other buildings that sit side-by-side.”

Fender Katsalidis principal James Mills said the project sets a new standard for the repurposing of buildings.

“Despite nothing of this scale or nature taking place in Australia previously, we have found a way to add value to the site through a cutting-edge architectural process that is exemplar for Brisbane and beyond.

“Our work at Midtown Centre is focused on bringing the buildings in line with today’s needs, increasing net lettable area and producing environmental sustainability through the design of commercial assets,” Mills said.

Rio’s New Digs Hit High Point (3)

Even before coronavirus created the new normal of social distancing, which in turn is set to have transformative impact on office design—Ashe Morgan chairman Michael Moss predicted the “customised office solution” prescribed for Rio Tinto would “create a benchmark for workplaces of the future”.

The centre features a level 20 “sky garden”, landscaped garden terrace atop the podium and “green seam” encasing the tower along with landscaped areas across the development totalling in excess of 3,000sq m.

With the Midtown centre slated for completion in mid-2020, the next phase of construction involves the addition of six levels to create a single tower from the new level 20 slab.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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Brisbane

Landlords hit by rising vacancies, falling prices

Landlords hit by rising vacancies, falling prices

Property prices don’t necessarily always fall during recessions but this time you would have to think that prices will tumble significantly, given the speed and depth of the COVID-19 economic shock.

Simon Pressley, managing director of Propertyology, says the problems in the property markets will be temporary.

Even those sober economists at the big banks are forecasting price falls of up to 32 per cent over the next couple of years – though the banks’ “base” cases, or most likely scenarios, are for price declines in the order of 10 per cent.

A lot of homeowners are ahead on their mortgage repayments and have a nice buffer in case they have to drop their payments to the required minimum, and history shows most people can hold on without becoming forced sellers.

That’s also likely to be the case this time, given the level of government support through JobKeeper and JobSeeker and lenders’ granting of repayment deferrals to their home loan customers affected by the financial fallout of the pandemic.

However, the situation is trickier for property investor landlords.

Rental vacancy rates in Sydney’s CBD hit more than 13.8 per cent during April – the highest ever recorded by property researcher SQM Research.

Vacancies at Melbourne’s Southbank are similarly at 13 per cent, and in the CBD it is 7.6 per cent.

So far, the vacancy rates in the suburbs of our two largest cities have risen only slightly, with the elevated rates contained to inner-city areas.

Still, the relatively low suburban vacancy rates may be understating the true weakness in rental market, given many tenants have negotiated rent discounts or deferrals with their landlords.

Robert Mellor, executive chairman of economic and property forecaster BIS Oxford Economics, describes the high vacancy rates of inner-city areas as “alarming”.

It is the number of people out of work, fewer international students and loss of immigration that’s driving the surge, particularly in areas with many higher-density developments.

Overseas travel bans have also led to demand for short-term accommodation through sites such as Airbnb drying up, leading property owners to list their housing for long-term leasing. That’s pushing vacancy rates in holiday hotspots higher, though that will change once interstate travel resumes.

Simon Pressley, managing director and head of market research at buyer’s agency Propertyology, says many landlords with investment properties in inner-city areas are finding it tough.

And those who bought investment properties recently risk being in negative equity if prices fall significantly, where they owe more on the property than what it is now worth, he says.

However, Pressley cautions against punching out doom and gloom predictions on a negative trend.

“I’m in the minority, but I’m not seeing double-digit price falls,” he says.

“It is a dreadful thing for some landlords but we are talking about specific pockets. It is not going to be like this forever.”

The coronavirus has at least ensured that interest rates and, therefore, borrowing costs, will stay low for years to come.

Time will tell, but the almost 2 million Australians with at least one investment property will be hoping Pressley’s optimism proves correct.

 

 

 

This article is republished from www.brisbanetimes.com.au under a Creative Commons license. Read the original article.

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Brisbane

Barber Property Group Lodges Plans for Medical Facility, Hotel

Barber Property Group Lodges Plans for Medical Facility, Hotel (1)

Barber Property Group has lodged plans for a “sub-tropical” 15 storey private medical facility and hotel in Spring Hill.

It was the second medical facility application lodged in the Brisbane CBD fringe suburb after Silverstone Developments revealed plans for a nine-storey commercial and medical building last week.

Barber Propery’s plans for 375 Wickham Terrace would see an existing mid-rise office building demolished to build a long narrow tower.

It includes 5,307sq m of health care floorspace, 186sq m of retail, a hotel with 46 rooms, conference rooms, a business lounge and a rooftop communal area.

The 1,370sq m site opposite Roma Street Parklands was in the midst of a community and residential precinct including multiple medical facilities as well as St Joseph’s College, Brisbane Central State School and Brisbane Grammar School.

Barber Property Group Lodges Plans for Medical Facility, Hotel (3)

The decision to lodge the plans was spurred on by Covid-19 according to the development application by Barber Property Group under the guise of St Lucia Enterprises.

“The current public health situation has highlighted the need for health care services in south-east Queensland, both now and into the future,” according to the application.

“The development will support the a robust and resilient health care system to address ongoing health and accommodation outcomes in support of standard health requirements together with heightened health requirements [as currently observed].”

The new plans were consistent with an existing approval from 2015 with the amalgamation of lots, realignment of the road behind the site and construction of a new road.

Barber Property Group Lodges Plans for Medical Facility, Hotel (2)

The Arkhefield design was described as contemporary and had to be mindful of the historically-significant Theosophical Society Building next door; an 1860s duplex which was converted into medical suites by notable architect Robin Dods in 1912.

“The new podium references the composition and elements of the vernacular verandah forming part of the heritage building, through inclusions within podium facade such as columns, batten screening and trellis,” according to the application to Brisbane City Council.

The design had a focus on natural light and ventilation with large windows and a breezeway on the tower levels beside the lift.

Barber Property Group have completed over $150 million worth of projects in the past 30 years in south-east Queensland such as the Jephson Hotel in Toowong and Quest on Story Bridge.

The Brisbane-based real estate investment and development company are currently working three sites in St Lucia including Vistas apartments, Gailey Road student accommodation and Eton Apartments.

 

 

 

This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.

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