RP Data Property Pulse
11 June 10
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Pre-listing activity remains at high levels although it has eased slightly over the last week. The result suggests that the level of new listings coming to the market over the next month will remain at high levels.
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Housing finance data released this week by the Australian Bureau of Statistics (ABS) showed that housing finance commitments by owner occupiers fell for the seventh consecutive month in April 2010. During the month, owner occupiers committed to a total of 47,669 loans which was the fewest number of commitments by owner occupiers since March 2001. On an annual basis total owner occupier finance commitments have now fallen by -25.3%. Housing finance commitments to owner occupiers for the construction of new dwellings has also continued to weaken during April, the sixth consecutive month in which it has softened. Housing finance commitments to owner occupiers for the construction of new dwellings is now at its lowest level since February 2009. The one positive from this data continues to be the value of investor finance commitments which increased by 1.3% during April however, investor commitments are not increasing quickly enough to offset the decline in commitments by owner occupiers. The value of investor finance commitments is now at its highest level since June 2007.
Westpac and the Melbourne Institute released their Consumer Sentiment Index this week and it showed further falls during June. The Index now sits at 101.9 points, down from 108.0 last month. The continued softening indicates that pessimism by consumers is growing although optimism still outweighs it, but only slightly.
Advertised Stock on the Market
 The volume of new property listings coming on to the market over the last week increased by 5.4% and sat at a level 18.4% above the 12 month average. Total listings have increased by 2.4% over the week and are 6.4% above the 12 month average. With property value growth seemingly slowing the increasing level of stock on the market may be cause for concern. For buyers however, it is likely to provide more purchase options and potentially greater scope for negotiation.
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Latest National Auction Clearance Rates
 Auction clearance rates have eased again this week with the national weighted average clearance rate recorded at 61.7%. Melbourne’s auction clearance rates have eased for the fifth consecutive week and now sit at 67.6%. Sydney’s auction clearance improved slightly last week to 62.3%. Nationally there is still a large volume of auctions being undertaken with more than 1,900 auctions taking place within the capital cities last weekend.
Want to know the auction results for your local area? Log into rpdata.com and go the Auction Results panel on the top right corner of the home page.
Number of Properties Advertised for Rent
 There has been little change in the number of new rental properties advertised during the last week nor has there been significant change in total rental listings. In comparison to one month previous, total rental listings are currently 5.3% higher.
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How much leverage do buyers have?
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With conditions in the residential market slowing substantially during April, we examine the level of vendor discounting apparent nationally and across each of the capitals.
Vendor discounting is a measure of the difference between the price that a property is initially listed for compared to the price at which it ultimately sells. The result is measured as the percentage change in listing price. It is pretty rare that a property will sell for its initial listing price, generally the ultimate selling price will be between 5% and 6% lower than what the seller was originally asking. As market dynamics change, you’ll generally notice that vendors take some time to become aware of the change and the amount of vendor discounting will increase.
As the Global Financial Crisis hit during September 2008, vendor discounting blew out to -7%, indicating that vendor pricing was well and truly not adjusting to falling property prices and few active purchasers. As at April 2010 and on a national capital city basis, the average level of vendor discounting for houses was recorded at -5.4%.
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Read the full article... |
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Commercial: Sold in Airport West
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 An office and warehouse in Airport West, Victoria, has been sold at auction by agents of DTZ after it was offered for the first time in 38 years.
The property at 16-18 Hawker Street, Airport West, was purchased by a local electrical services business for owner-occupation.
DTZ agents, Duncan Scott and Patrick O’Callaghan, marketed the property, which achieved a final selling price at auction of $1.025 million.
The building, previously leased by Foster’s Australia as a soft drink and beverage warehouse facility until these operations were relocated, comprises 250 sqm of fitted office space over two levels and 1070 sqm of warehouse space, 30 metres of street frontage and eight car parking spaces.
Mr O’Callaghan said that he considered the property ideal for an owner occupier, though it could also have been subdivided in two.
“It is within the tightly held Airport West industrial area immediately opposite the revitalised and redeveloped Essendon Airport complex,” said Mr O’Callaghan.
“Accessibility is a key feature of this property as the entire Airport West commercial and industrial area is ringed by the three major freeway road networks and the CBD is only about 15 minutes away.”
“The sale price is significantly stronger than our before auction expectations perhaps reflecting this was the first time in thirty eight years that it has been available for sale.”
Stay up-to-date with the latest commercial property news all in one place. Subscribe to the Australian Property Review for only $1.90 a week and receive a weekly newsletter that includes Auction Results, Deals of the Week, Retail News, Leasing Deals and an Industry Market Update. Click here to find out more information.
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Blog: New South Wales gets it right
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The recently announced New South Wales Budget sets out some of the most strategic property related initiatives seen to date, with incentives aimed at improving housing supply and affordability rather than simply throwing money at the symptoms.
The most important announcement was that stamp duty, largely viewed as one of the most inequitable and inefficient taxes around, has been axed for those people purchasing a home ‘off the plan’ and under $600,000. An ‘off the plan’ purchase basically means buying the home before construction is completed.
At a consumer level the benefit is clearly in the stamp duty savings which could equate to as much as $22,490 on a home purchase.
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Read the full article at blog.rpdata.com... |
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When was the last time you had training?
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Make sure you are utilising the RP Data Property System to its full advantage and stay two steps ahead of your competition. Receiving regular RP Data Training can help you generate more leads and listings.
RP Data offers different training options to help you optimise your RP Data subscription.
Go to http://www.vision6.com.au/ch/9640/2dwwy7n/1169742/7ea9915hzw.html to find out more about the training sessions available in your state.
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How you can use the RP Data Property Pulse
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Conditions of Syndication
You should not rely upon the opinions expressed in this report for any investment decision. RP Data will not be held responsible for any loss or damage suffered as a result of relying upon the opinions and information contained in this report. You should always take specific advice from a professional advisor so that your particular circumstances can be assessed and an investment decision appropriate to your circumstances can be determined.
You may not under any circumstances take a whole or part of the content and forward to any media outlet at any time.
You may not re-publish this content as your own without our express written permission. All Intellectual property used in the creation of the RP Property Pulse remains with RP Data Limited. The research and opinions expressed remain those of RP Data Limited. If you have any questions about syndication obligations, please firstly speak with the RP Data Research Division on: 1300 734 318.
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