Property Pulse
25 June 10
|
|
|
|
|
|
|
|
Pre-listing activity has eased again over the most recent week however, agent activity remains above the 12 months average. This is the third week in a row in which pre-listing activity has fallen and although we don’t anticipate a mass decline in pre-listing activity the easing is reflective of the slower market conditions.
|
|
|
|
|
|
|
|
It’s been a slow week for property data this week, however next week the latest RP Data-Rismark Home Value Index results will be released which will provide indicative results for May 2010. Last month’s Indices showed a significant slowing of the residential market with capital city house values increasing by 0.1% for the month and unit values up 0.5%. During March 2010 house values had climbed 1.3% and unit values increased by 1.4%. Most lead indicators are well and truly indicating that the market is slowing: housing finance commitments continue to fall, as does consumer sentiment, interest rates are 150 basis points higher than their recent lows, dwelling approvals fell by -14.8% during April and auction clearance rates continue to trend down. Given these results we anticipate that the rate of property value growth during May 2010 will once again be soft and this trend is likely to continue until at least the time of the spring selling season when market activity historically begins to rebound.
We also anticipate that our lead indicators such as vendor expectation error (discounting) and time on market will increase further due to the slower market conditions.
Advertised Stock on the Market
 The volume of newly advertised property listings entering the market over the last week has fallen by -6.7% (keeping in mind that last Monday was a public holiday in most parts of the country). The total volume of new listings also sat -4.7% below 12 month average levels during the last week. As a result of the easing in new listing volumes, total property listings have also fallen during last week. Total listings were down -2.3% from the previous week however, the total amount of stock available for sale remains 2.0% above the 12 month average. It is encouraging to see that as market conditions slow the total volume of listings on the market is also easing.
Want to know what is happening in your local patch? Make sure you have subscribed to RP Data's On the Market® service. Click here or phone 1300 734 318 for a free 2 week trial.
Latest National Auction Clearance Rates
 Auction clearance rates fell again last week, the fifth consecutive week of declines. The national weighted average auction clearance rate was recorded at 58.1%. For seven weeks now the weighted average auction clearance rate has been recorded below 65%. Melbourne’s auction clearance rate fell to its lowest level since January 2010, recording a clearance of just 62.0%. Sydney’s auction clearance rate fell to its lowest level of the year at 59.0%. Nationally, the volume of capital city auctions was still significant with more than 2,100 capital city auctions taking place.
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
 Another big fall in new and total rental listings was recorded last week. New rental listings fell by -15.8% during the week and are now at their lowest level since last Christmas. Total rental listings also fell sharply (-7.4%) and are at their lowest level since Christmas also. With the property market now cooling, we expect the focus to switch to the rental market with vacancy rates expected to tighten as demand increases and as a result rental rates are anticipated to climb.
|
|
|
|
|
|
Where can the average buyer afford to purchase?
|
|
Housing affordability remains an issue however, there are still options for the price sensitive purchaser… particularly within the unit market.
Last week’s Property Pulse looked at the average buying power across each state, the proportion of total sales at prices affordable for the average buyer and the council areas with the greatest proportion of sales at or below average prices for houses. This week we take a look at the same analysis for the unit market.
Across Australia’s capital cities the median unit price is currently recorded at $410,000 which is $82,000 more affordable than the median house price. Of course there are far fewer units nationally than houses however, they are in most instances a much more affordable purchase option, especially for price sensitive purchasers with limited funds. They can also offer purchasers the opportunity to live within a location in which they would be unlikely to be able to afford a house. For investors, units also generally provide a more attractive rental yield.
|
|
Read the full article... |
|
|
|
|
|
Australian Market Update-
June 2010
|
|
 The RP Data Research Analysts have compiled 28 graphs focused on the Australian Property Market. Included in the presentation are graphs showing Median House and Unit Prices, Annual Change in Dwelling Values and National Capital Growth and Sales Volume.
Click the button below to download the June 2010 presentation.
|
|
|
|
|
|
Commercial: Fully leased Muswellbrook
office sold
|
|
An office building in Muswellbrook, New South Wales, has been sold at auction by agents of Colliers International and John Flood Estate Agents.
 The offices at 4-6 Market Lane, Muswellbrook, were sold with leases in place to several tenants, including new leases to state government departments.
Colliers International agent, Adam Leacy, and John Flood Estate Agents agent, Sandy Warburton, marketed the property, which achieved a final selling price at auction of $3.25 million.
Situated on a 6107 sqm site, the property comprises two single level commercial and retail buildings providing eight tenancies with a total combined area of 1794 sqm.
The NSW Department of Community Services has committed to lease one commercial tenancy for six years from August 2009, and there are also secure leases in place to NSW Disability and Home Care, Crane Distribution and Regional Publishers, generating a total combined income is $324,200 per annum net and giving the sale a yield of approximately 9.98%.
A current DA is understood to be in place to erect five executive town houses on the surplus land.
Fully managed by John Flood Estate Agents, the property had been owned by an interstate family company for the past 20 years.
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.
|
|
|
|
|
|
Blog: Housing demand appears to have peaked with population growth slowing across Australia.
|
|
Australia’s dramatic rate of population growth appears to have peaked, with the number of overseas migrants tanking in December. Total population growth was down 18% in the December quarter of 2009 compared with December 2008.
Net overseas migrants are down significantly since peaking in the March quarter last year at 98,140. In the December quarter of last year net migration was just 49,170 – about fifty percent lower than peak overseas migration less than a year ago.
|
|
Read the full article at blog.rpdata.com... |
|
|
|
|
|
|
Follow RP Data on Twitter |
|
|
|
|
|
How you can use the RP Data Property Pulse
As a participating RP Data subscriber, you are authorised by RP Data Limited to, at your choosing, forward this content to your customers or publish as editorial content on your website and newsletters in an unedited fashion provided that RP Data is appropriately quoted.
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.
|
|
|
|
|
|
|
|
|
|
